Bill to Revive Investment in the Hydroelectric Sector to Contribute to the Energy Transition
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This bill translates into law a principle agreement reached with the European Commission in August 2025, aimed at relaunching investment in France's hydroelectric energy sector. France has long been under pressure from Brussels to open its hydroelectric concessions to competition, as EDF has historically held a near-monopoly on hydroelectric generation. The legislation creates a new authorization regime for the exploitation of hydraulic energy, replacing the existing concession system. This new framework is designed to be more transparent, time-limited, and open to competitive market forces while ensuring public service obligations are met. A key structural change is that 40% of France's hydroelectric generating capacity will be opened to companies competing with EDF. This represents a significant liberalization of a sector that produces approximately 10–12% of France's total electricity and is critical to grid balancing and renewable energy targets. The bill is positioned as essential to attracting new private investment in hydroelectric infrastructure modernization and capacity expansion, which has stalled due to legal uncertainty around the old concession regime. It aligns France with EU internal energy market rules while preserving strategic national interest safeguards.
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Key Changes
- A new authorization regime replaces the existing concession system for hydroelectric energy exploitation in France
- 40% of France's total hydroelectric generating capacity is opened to companies competing with EDF
- The bill implements a principle agreement reached with the European Commission in August 2025
+ 3 more changes with Pro
Obligations
What this law requires
Replace the existing hydroelectric concession system with a new authorization regime for the exploitation of hydraulic energy
Open 40% of France's hydroelectric generating capacity to competitive companies other than EDF
Ensure the new authorization regime is transparent in its procedures and decision-making
Implement time-limited authorizations for hydroelectric exploitation (replacing indefinite concessions)
Maintain public service obligations in hydroelectric operations under the new authorization regime