French energy regulator reports impact of renewables on electricity prices

A report from the French Energy Regulatory Commission (CRE) highlights the dual impact of renewable energy deployment on the national electricity system. The expansion of solar and wind power has helped lower market prices, benefiting consumers. Simulations suggest that the growth of renewables between 2020 and 2025 reduced market prices by approximately €20/MWh, providing an estimated €8 billion in benefits to consumers against €3 billion in costs.

However, the rapid growth of solar capacity—which reached 30.7 GW by the end of 2025—is creating new economic challenges. The CRE notes an increase in negative prices and solar curtailment, which can weaken the value of solar assets. In 2025, France experienced 513 hours of negative prices, and approximately 1.6 TWh of solar production was curtailed, representing about 5% of potential output.

To mitigate these risks, the CRE suggests that future solar projects must integrate flexibility, such as energy storage and self-consumption, to preserve asset value. While continued renewable development is deemed beneficial for consumers, the regulator warns that the economic advantages could be offset if electricity demand does not increase sufficiently to balance the growing supply.