French energy regulator sets parameters for 2030 capacity auction

The French Energy Regulatory Commission (CRE) has outlined the parameters for the first long-term auction of the country’s new capacity mechanism, scheduled for the 2030-2031 winter period. The mechanism is designed to mitigate the risk of electricity system failures during peak demand by remunerating operators of production, storage, and consumption shedding capacities.

With a target volume of 82 GW and price caps maintained at current levels, the regulator is adopting a cautious approach to ensure supply security while limiting consumer costs. Based on a report from RTE, the CRE has proposed a methodology to the Ministry of Energy to define demand curves and the technical and economic parameters required for this auction. This upcoming event occurs during a transition period between the old and new mechanisms, requiring market participants to commit to the 2030-2031 period before securing contributions for the preceding three winters.