#2026-554France restructures major hydropower concessions to support energy transition investment
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This law ends existing major hydropower concession contracts and replaces them with a long-term real property-style right over the relevant hydraulic works and facilities. It mainly applies to hydropower assets above 4,500 kilowatts, including certain reservoirs used to support hydropower production, while excluding some facilities mainly tied to navigation infrastructure. The law gives current concession holders a 70-year right to use and operate the assets, and to build extensions where authorized. The practical goal is to unlock investment in hydropower while addressing energy security, water management, environmental protection, and access to flexible electricity capacity.
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Key Changes
- Terminates existing major hydropower concession contracts covered by the law
- Grants current concession holders a 70-year right to use and operate the relevant hydraulic works and facilities
- Allows authorized extensions to existing hydropower infrastructure under the same legal regime
Obligations
What this law requires
Existing hydraulic energy concession contracts in force on 29 June 2026 for hydraulic works or facilities with maximum gross power above 4,500 kW are terminated under the conditions of the law, except facilities whose hydropower use is ancillary to navigation-related dams covered by the VNF exception.
Existing concession contracts principally covering hydraulic reservoirs intended to improve a watercourse regime for hydropower production by installations above 4,500 kW are terminated under the conditions of the law.
For each former concession holder, the new 70-year real right applies only to the hydraulic works and facilities that the holder previously operated as concessionaire.
A holder that builds new works or installations extending existing hydraulic works must do so at its own expense, on state domain property, and without interfering with other assigned uses of that state domain.