France is the second-largest electricity-producing country in Europe and a global leader in nuclear energy production.
However, the 2022 energy crisis affected France’s electricity market. Among the causes of the energy crisis are the economic recovery after COVID-19 and the international trading restrictions after Russia invaded Ukraine. Another contributing factor was that France’s nuclear fleet underwent several forced power outages due to corrosion problems, causing a 15 percent decline in the
country’s electricity production year-over-year. In 2022, the country became a net
importer of electricity, a situation that was reversed in 2023.
How is electricity generated in France?
Nuclear power is the primary
source of electricity generation in France, accounting for nearly 65 percent of the country’s power output in 2023. While renewables are the second-largest source of electricity in France, the
electricity produced by hydropower, wind, solar, and bioenergy is less than half the nuclear share. Fossil fuels, especially natural gas, are still present in the country's electricity production, with an installed electricity capacity of some 17 gigawatts per year. With its low-carbon electricity mix, France’s power sector accounted for one of the smallest
carbon intensities in the European Union, coming second only to Sweden in 2022.
According to the upcoming Multiannual Energy Programme 2024, France plans to increase its electricity production by 10 percent by 2030 and by 55 percent by 2050, compared to 2021 levels. France has announced an acceleration of renewable energy plant deployment and the construction of six new nuclear reactors.
Price of electricity in France
During the energy crisis, the price of electricity skyrocketed in Europe; France included. The
wholesale electricity price in France reached 490 euros per megawatt-hour in the summer of 2022, around 10 times larger than in the summer of 2020. The
electricity price for households in France increased accordingly. Since February 2022, the French government implemented a tariffs shield to keep the increase in electricity prices below four percent, all taxes included. This price cap will be maintained with an electricity price growth limit of 15 percent in 2023 and reduced gradually until 2025. The parties that can benefit from this measure are households with
electricity supplied at regulated tariffs or at indexed electricity prices following the regulated tariffs, and companies with less than 10 employees, a turnover below two million euros, and power of less than 35 kilovolt-amperes.
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