The French government has launched its 3^rd Multi-Year Energy Program (PPE3) to increase production of decarbonized, sovereign, and competitively priced energy in the country. The program introduces energy policy directions for the coming decade and charts the path towards France’s carbon neutrality by 2050.

The program was issued for consultation with stakeholders before finalization. It involved consultations from 50,000 participants, included 7,500 proposals, and was approved after garnering over one million votes.

The PPE3 aims to increase decarbonized energy generation from 544 TWh in 2025 to between 650 TWh and 693 TWh by 2035. It also aims to reduce fossil fuel consumption to approximately 330 TWh in 2035, down from 900 TWh recorded in 2023.

The program aims to enable 60% decarbonized energy in its power consumption mix by 2030, and 70% by 2035. PPE3 covers diversified energy production from multiple sources, including nuclear, hydroelectric, onshore and offshore wind, and solar.

Its aims also include the electrification of operations powered by fossil fuels and the development of low-carbon substitutes for them. These substitutes will include district heating networks, biomethane, biofuels, and hydrogen.

PPE3 will include, for the first time, a 2027 review clause. Under this clause, the government will assess if energy demand is developing as expected and adjust targets if needed.

Energy Target Criteria

The government set production levels for each energy source based on four criteria: cost control, production availability, public acceptance, and energy sovereignty.

Renewable Energy Reformation

PPE3 set a development plan for continuous solar power generation, targeting 48 GW of capacity by 2030 and 55 GW to 80 GW by 2035, up from approximately 30 GW in 2025.

The program aims to accelerate offshore wind capacity, taking into account the sector’s industrial realities and infrastructure and grid needs. It has set a target of achieving 15 GW of installed offshore wind capacity by 2035.

For onshore wind power, the government will prioritize renewing existing wind farms to increase their capacity, targeting 31 GW in 2030 and 35 GW to 40 GW by 2035, up from roughly 24 GW in 2025.

PPE3 aims to increase France’s dam-based hydroelectric capacity to 2.8 GW, primarily through the optimization and reinforcement of existing facilities, including 1.7 GW of pumped-storage hydroelectric power.

Decarbonized Energy Solutions

For sectors that cannot easily switch to electricity, the PPE3 program promotes the use of decarbonized fuel sources such as biomethane, hydrogen, renewable heat and cooling, and biofuels.

Under the program, the French government plans to increase the country’s renewable and recovered heat to between 328 TWh and 421 TWh by 2035. It aims to increase the biomethane capacity to between 47 TWh and 82 TWh during this period, biofuel capacity to between 70 TWh and 90 TWh, and hydrogen capacity to 8 GW.

Competitive Tenders

Through the program, the government aims to achieve greater financial control over the energy transition by supporting power projects primarily through competitive tenders and by adjusting support programs to avoid excessive profits.

This initiative is expected to halve budgetary spending on renewable energy by 2040 and eliminate it completely by 2055. The trajectory will be affected by developments in electricity prices.

Addressing Power Fluctuations

The government aims to reform the management of renewable energy in 2026 to limit power fluctuations during negative price periods.

To this end, it issued two decrees in September 2025 that allow renewable power projects to continue operating even during events with slightly negative prices. Work on these initiatives will be undertaken in conjunction with France’s Energy Regulatory Commission.

Power Capacity Mechanism

Under PPE3, the government will reform the power capacity mechanism in 2026 to prepare the system for peak winter demands. Réseau de Transport d’Électricité, the country’s electricity transmission system operator, will revise its Ten-Year Network Development Scheme in 2026 to adapt the energy network to a warmer climate and to meet demands for electrification and the connection of power production facilities, and to strengthen high- and very-high-voltage lines.

The government, as part of the PPE3 implementation, will prioritize incorporating criteria favoring European industry in its tenders.

Last December, France’s Ministry of Energy Transition awarded a combined capacity of 507.7 MW across 36 solar projects under the fourth round of its technology-neutral renewables tender. The tender was floated for a total capacity of 500 MW.

Europe’s solar power purchase agreement prices in the fourth quarter of 2025 declined for the third consecutive quarter, with the market-averaged P25 solar price at €57.44 (~$68.06)/MWh, down roughly 8% year-over-year. Wind prices also softened, with P25 wind PPAs at €85.96 (~$101.85)/MWh, falling about 3% quarter-over-quarter.