Policies in France

The Energy Code, inter alia Articles L342-3 to L342-5 establish the legal framework for connecting renewable energy installations to the electricity grid. These provisions aim to facilitate grid access for renewable energy producers. 

Electricity producers have a contractual right to connect renewable energy facilities to the grid. The Energy Code mandates that grid operators connect electricity production facilities to the network without discrimination, ensuring that RE producers have the right to grid access. However, plants that generate renewable energy are not prioritised.

Plant operators have a contractual right to use the grid. The grid operator is required to reach agreements on connection and consumption without favouring certain plant operators. Plants that generate electricity from renewable energy sources are not prioritised.

Facility operators may have contractual rights to grid expansion if the connection of a plant to the grid necessitates grid expansion. In order to meet the Public Service Obligation (PSO - "Service Public de l'Électricité"), the grid operator is often required to expand the grid.

An application for connection must be completed by submitting a form. Prior to receiving an offer for technical implementation and connection fees, the applicant has the option of requesting a full analysis. Within three months of receiving the application for connection, the grid operator must submit an offer to the plant operator for technical implementation and connection expenses (connection offer - proposition technique et financière, "PTF"). When the application involves individual plants connected to the low-voltage grid, the time limit is shortened to six weeks (max 50kV). If the application involves the high voltage grid, the two parties must sign an engagement and performance agreement (convention d'engagement de performances). The agreement establishes the technical and legal conditions governing the plant's technical performance. The grid connection agreement (convention de raccordement) is based on the PTF and includes provisions such as a connecting date and fees.

Rights and obligations of prosumers and consumers

In the electricity market in France, both customers and prosumers (customers who also produce electricity) have certain rights and obligations. Here are some key aspects:

Rights of Customers and Prosumers (from Energy code, Code de l’Energie):

-    Access to Electricity Supply: Customers and prosumers have the right to access a reliable and uninterrupted supply of electricity, subject to payment of applicable tariffs and fees.

-    Transparent Pricing: Customers and prosumers have the right to clear and transparent pricing information, including electricity rates, taxes, and any additional charges.

-    Choice of Supplier: Customers and prosumers have the right to choose their electricity supplier from among the available providers in the market. They can switch suppliers if desired, subject to contractual obligations.

-    Consumer Protection: Customers and prosumers are entitled to consumer protection measures, ensuring fair treatment, accurate billing, and dispute resolution mechanisms.

-    Privacy and Data Protection: Customers and prosumers have the right to privacy and data protection, ensuring their personal and energy consumption data is handled in accordance with relevant laws and regulations.

Obligations of Customers and Prosumers (from Code de l’Energie):

-    Payment of Bills: Customers and prosumers have an obligation to pay their electricity bills within the specified payment terms and in accordance with the agreed-upon tariffs and contractual terms.

-    Compliance with Safety and Technical Requirements: Customers and prosumers must adhere to safety standards and technical requirements for electrical installations, ensuring compliance with regulations to prevent accidents and maintain grid stability.

-    Metering and Data Reporting: Customers and prosumers are required to allow access to their premises for metering purposes and provide accurate energy consumption data when requested by their supplier or grid operator.

-    Contractual Obligations: Customers and prosumers must comply with the terms and conditions of their electricity supply contracts, including minimum consumption levels, payment obligations, and any contractual obligations related to self-consumption or energy production.

-    Grid Code Compliance: Prosumers who generate electricity and feed it into the grid have obligations to comply with the technical and operational requirements outlined in the Grid Code (Code de réseau). What are the rights and obligations of plant operators?

The rights and obligations of customers and prosumers in the electricity market in France are outlined in several laws and regulations. Here are some key references:
1.    French Energy Code (Code de l'Énergie):
•    The French Energy Code is a comprehensive legislative framework that governs the energy sector in France.
•    It sets out the rights and obligations of customers and prosumers in the electricity market, including general principles, consumer protection, and grid access.
2.    Consumer Code (Code de la Consommation):
•    The French Consumer Code contains provisions related to consumer rights and protection, including those applicable to electricity customers.
•    It outlines the general rules and obligations regarding contractual agreements, billing, dispute resolution, and consumer information.

Rights and obligations of plant operators 

There are specific rules and obligations concerning renewable energy system plant operators in France. These rules and obligations are in place to ensure the safe and efficient operation of renewable energy installations and to promote the integration of renewable energy into the electricity grid. Here are some key aspects:
1.    Grid Connection and Compliance:
•    Renewable energy system plant operators must comply with the technical requirements for grid connection outlined in the Grid Code (Code de réseau).
•    They are responsible for ensuring that their installations meet the necessary standards and specifications to connect to the grid safely and reliably.
2.    Administrative and Regulatory Compliance:
•    Renewable energy system plant operators must comply with administrative and regulatory requirements set forth by various authorities.
•    This includes obtaining necessary permits, licenses, and authorisations from relevant government agencies and complying with environmental and land-use regulations.
3.    Power Purchase Agreement (PPA):
•    In some cases, renewable energy system plant operators enter into Power Purchase Agreements (PPAs) with electricity buyers or off-takers.
•    These agreements outline the terms and conditions for the sale and purchase of electricity generated by the renewable energy installation.
4.    Energy Market Participation:
•    Renewable energy system plant operators may participate in the electricity market, either by selling electricity directly or by participating in support mechanisms such as feed-in tariffs or auctions.
•    They must comply with the rules and procedures established by the electricity market operator (such as EPEX Spot) and relevant market regulations.
5.    Reporting and Monitoring:
•    Renewable energy system plant operators are typically required to report operational data and production information to the relevant authorities and grid operators.
•    They may also be subject to monitoring and auditing to ensure compliance with regulations and contractual obligations.

Tasks of the DSO/TSO

In France, the DSO (Distribution System Operator) and TSO (Transmission System Operator) have distinct tasks related to the management and operation of the electricity grid:
1.    DSO (Distribution System Operator):
•    The DSO is responsible for distributing electricity from the transmission grid to end-users, including residential, commercial, and industrial consumers.
•    Their tasks include operating, maintaining, and developing the distribution grid, which encompasses low-voltage and medium-voltage networks.
•    The DSO ensures the safe and reliable distribution of electricity, manages grid connections, and handles metering and billing for customers within its distribution area.
•    They are also responsible for integrating distributed energy resources, such as renewable energy installations, into the distribution grid.
2.    TSO (Transmission System Operator):
•    The TSO is responsible for operating and managing the high-voltage transmission grid, which enables the long-distance transmission of electricity across regions and countries.
•    Their main task is to ensure the secure and efficient transmission of electricity, maintaining the balance between electricity supply and demand on a national or regional level.
•    The TSO plans and operates the transmission grid, manages grid connections of power plants and major consumers, and handles cross-border electricity exchanges.
•    They also play a crucial role in coordinating the integration of renewable energy sources, managing grid stability, and facilitating market transactions between electricity producers and consumers.
In France, the TSO is RTE (Réseau de Transport d'Électricité), which is responsible for the national transmission grid. The DSOs are different entities operating at the regional or local level, such as Enedis for most of mainland France and EDF SEI for Corsica.
The roles of DSO and TSO are defined and regulated by the French Energy Code (Code de l'Énergie) and other relevant laws and regulations. These operators work closely together to ensure the reliable and efficient functioning of the electricity system from the transmission to the distribution level.

Role of the National Regulatory Authority (NRA)

The role of the National Electricity Regulatory Agency (Autorité de Régulation de l'Électricité, CRE) in France is to regulate and supervise the electricity sector. Here are the key responsibilities and functions of CRE:
1.    Regulation and Tariff Setting:
•    CRE regulates and sets tariffs for the transmission, distribution, and access to the electricity grid.
•    They establish the methodologies for tariff calculations and monitor compliance by network operators and electricity suppliers.
•    CRE ensures that the tariffs are fair and transparent and promote the efficient operation and development of the electricity sector.
2.    Market Oversight and Competition:
•    CRE monitors and promotes competition in the electricity market, ensuring a level playing field for market participants.
•    They oversee market mechanisms, such as auctions and power purchase agreements, to promote fair competition and efficient market outcomes.
•    CRE investigates and addresses any anti-competitive practices or abuses of market power by market participants.
3.    Licensing and Authorisation:
•    CRE is responsible for granting licenses and authorisations to electricity market participants, including suppliers, producers, and operators.
•    They assess applications, evaluate compliance with legal and technical requirements, and ensure the reliability and integrity of the electricity system.
4.    Consumer Protection:
•    CRE safeguards the interests of electricity consumers, ensuring fair treatment, quality of service, and accurate billing.
•    They handle consumer complaints and disputes related to electricity supply and market activities.
•    CRE promotes consumer awareness and education about their rights and obligations in the electricity market.
5.    Renewable Energy Support Mechanisms:
•    CRE administers and oversees support mechanisms for renewable energy, such as feed-in tariffs and contracts for difference.
•    They define the conditions, tariffs, and procedures for renewable energy producers to benefit from these support mechanisms.
•    CRE ensures the effectiveness and transparency of these mechanisms to foster the development of renewable energy in France.
The National Electricity Regulatory Agency, CRE, operates independently from the government and acts as an impartial regulatory authority. Its activities are guided by the French Energy Code (Code de l'Énergie) and other relevant laws and regulations. CRE's role is crucial in promoting competition, protecting consumer interests, and ensuring the efficient functioning of the electricity sector in France.

Priority for RES and curtailment 

In France, the principle of non-discrimination applies, and renewable energy sources are not given priority. There is no specific regulation regarding the use of the grid in France regarding renewable energy sources. The grid operator must take ad hoc steps to shut down power facilities on the French mainland when the grid is under full load or overload. 

Grid use/management rules on islands

The electricity grid use and management rules on French islands can differ from the mainland due to several factors. Here are some key factors that contribute to the differences:
1.    Island Isolation: French islands are often physically disconnected from the mainland grid, which poses unique challenges for grid use and management. This isolation necessitates self-sufficiency in electricity generation and a more localised approach to grid operations.
2.    Limited Grid Capacity: Islands typically have limited grid capacity due to their smaller size and geographical constraints. This limitation affects the ability to transmit and distribute electricity, requiring careful management of power flows and load balancing.
3.    Variable Renewable Energy Integration: Many French islands have abundant renewable energy resources, such as wind, solar, and geothermal. However, the intermittent and variable nature of these sources requires specific grid management strategies to ensure grid stability and reliability.
4.    Energy Storage Considerations: Islands often require energy storage systems to manage fluctuations in electricity supply and demand, balance the grid, and ensure continuous power availability. Storage technologies, such as batteries or pumped hydro, are utilised to store excess energy during periods of high generation and release it during peak demand.
5.    Limited Interconnection: Some French islands may have limited or absent interconnection with the mainland grid. This lack of interconnection affects the import/export capabilities and energy exchange possibilities, necessitating more local energy generation and management.
6.    Energy Independence Goals: Many French islands have set goals to achieve a higher level of energy independence by reducing reliance on fossil fuel imports and increasing renewable energy generation. This focus on energy transition and sustainability influences the grid use and management rules and drives the integration of renewable energy solutions.
To address these factors, specific regulations and policies have been developed for French islands to support the integration of renewable energy, promote energy efficiency, ensure grid stability, and enhance the resilience of the electricity system.

Procedure 

According to Art. 18, Loi n°2000-108, specific clauses relative to the expansion of the grid are included in the connection agreements (convention de raccordement), which are binding for plant operators (entitled party) and grid operators (obligated party). Unless access to the grid can be given without expanding the grid, a claim for grid expansion will emerge on the date of the agreement's conclusion.

Task of the DSO/TSO

In France, the Distribution System Operator (DSO) and Transmission System Operator (TSO) have distinct tasks in developing the power grid. Here are their main responsibilities:
1.    DSO (Distribution System Operator):
•    The DSO is responsible for developing, operating, and maintaining the distribution grid.
•    Their tasks include ensuring the safe and reliable delivery of electricity to end-users, managing grid connections, and maintaining distribution infrastructure.
•    The DSO coordinates integrating distributed energy resources, such as renewable energy installations, into the distribution grid.
•    They are also responsible for planning and managing load growth, maintaining power quality, and handling metering and billing for customers within their distribution area.
2.    TSO (Transmission System Operator):
•    The TSO is responsible for developing, operating, and maintaining the high-voltage transmission grid.
•    Their primary task is to ensure the secure and efficient transmission of electricity across long distances and between different regions.
•    The TSO plans and operates the transmission grid, manages grid connections of power plants and major consumers, and ensures grid stability and reliability.
•    They facilitate cross-border electricity exchanges, manage congestion on the transmission network, and coordinate with neighbouring TSOs for international grid interconnections.

Obligations and rights of plant operators

In France, the obligations and rights of plant operators in power grid development are outlined in various laws and regulations. Here are some key legal references:
1.    French Energy Code (Code de l'énergie):
•    The French Energy Code is a comprehensive legal framework that governs the energy sector in France, including power grid development.
•    It establishes the obligations and rights of plant operators and provides general provisions related to grid connection, operation, and maintenance.
•    
2.    Grid Codes (Codes de Réseau):
•    Grid Codes are technical regulations issued by the Transmission System Operator (TSO), RTE (Réseau de Transport d'Électricité).
•    These codes define the technical rules and requirements for power plant connection, operation, and interaction with the transmission grid.
•    They specify obligations related to grid stability, frequency control, reactive power management, and other technical aspects.

Obligations and rights of customers

In France, the obligations and rights of customers in grid development are established in various laws and regulations. Here are some key legal references:
1.    French Energy Code (Code de l'énergie):
•    The French Energy Code serves as a primary legal framework for the energy sector in France, including grid development.
•    It outlines customers' general obligations and rights regarding grid development, including access to the grid, quality of service, and consumer protection.
2.    Electricity and Gas Distribution Code (Code de la distribution d'électricité et de gaz):
•    The Electricity and Gas Distribution Code provides specific regulations and technical rules related to the distribution of electricity and gas.
•    It addresses customer rights and obligations, including issues such as connection procedures, metering, quality of service, and complaint handling.
3.    Consumer Protection Code (Code de la consommation):
•    The Consumer Protection Code includes provisions that protect the rights of consumers in various sectors, including the energy sector.
•    It outlines rules related to consumer information, contractual terms, billing accuracy, and consumer remedies.
It's important to note that customers' specific obligations and rights may vary depending on their consumer category (residential, commercial, industrial) and the nature of their electricity supply contracts.

Role of the NRA

The role of the Commission de Régulation de l'Énergie (CRE) in power grid development in France is defined by several laws and regulations. Here are some key legal references that outline CRE's role:
1.    French Energy Code (Code de l'énergie):
•    The French Energy Code establishes the legal framework for the energy sector in France, including the role and responsibilities of CRE.
•    Article L134-1 of the French Energy Code outlines the tasks and powers of CRE, including its role in regulating and overseeing grid development.
2.    Law No. 2000-108 of February 10, 2000:
•    This law created CRE as an independent administrative authority responsible for regulating the energy sector in France.
•    It defines CRE's powers and functions, including its role in promoting competition, setting tariffs, and regulating grid access and operation.

• Gestionnaire du Réseau de Transport d’Électricité (RTE) – transmission grid operator
• Enedis (Formerly ERDF, Électricité Réseau Distribution France) – main distribution grid operator

Number of DSOs: 138

Source: Open Data GRD

As of 31 August 2024, 37.3 million users were equipped with a Linky meter in the Enedis territory, according to the data from the CRE. Nearly 2.1 million users were still equipped with an older-generation meter (still within the Enedis scope) at that date. In addition, there are households located in areas outside the Enedis scope, served by local distribution companies (ELD), where the deployment of Linky meters has not yet been completed.

The French Energy Regulator (CRE) has been promoting smart grids since 2010. CRE continues supporting the transition towards smart grids through project monitoring, operator assessments, and policy recommendations.

Finally, France is planning to invest €100 billion to enhance and expand the electricity grid by 2040. Furthermore, France is focusing on innovative projects to advance grid digitalisation. For instance, RTE is developing the 'Concept Grid,' an experimental platform designed to test and anticipate future developments in smart grids.

Total number of active electricity nationwide suppliers in the retail market 2024: 27

Among the 27 electricity suppliers, 13 suppliers offer electricity and natural gas contracts.

In France, the tariff methodology for the deployment of renewable energy systems, including in French islands, is primarily governed by the French Energy Code (Code de l'énergie). The Energy Code provides the legal framework for the development, operation, and support of renewable energy projects.

Areas not interconnected to the continental metropolitan network (ZNI), namely overseas territories and communities (excluding New Caledonia and French Polynesia which jurisdiction over energy), the Breton islands of Ponant (Sein, Molène, Ouessant et Chausey), as well as the Corsica, are "small isolated networks" within the meaning of European Directive No. 2009/72/EC of July 13, 2009.

The small size of these networks and the mainly insular nature of the territories concerned create strong constraints in terms of network supply and management electricity, the energy mix, supply and services in general, which generate high electricity generation costs. 

The energy transition in ZNIs is governed by multi-year energy programs (PPE) specific to each territory. These programs, developed jointly by the State and local authorities, define the objectives and means to be implemented to develop renewable energies and improve energy efficiency. The objective is to reduce dependence on fossil fuels. The law on the energy transition for green growth of August 17, 2015 sets an energy autonomy target for overseas departments by 2030.

Specific support mechanisms are also put in place to encourage the development of renewable energies in ZNIs. These mechanisms include purchasing schemes at preferential rates for electricity produced from renewable sources, such as purchase obligation contracts or additional remuneration. These measures aim to compensate for the additional costs associated with the production of renewable energy in these areas and to attract the investments needed to diversify the local energy mix.

There are currently no specific caps for renewable energy system (RES) installed capacity in the electrical network at the national level. However, there may be regional or local constraints or limitations on RES projects due to grid capacity, technical feasibility, or environmental considerations. These constraints are typically evaluated and managed by the relevant Distribution System Operators (DSOs) or Transmission System Operators (TSOs) in coordination with the regulatory authorities.

The French government has set renewable energy targets and objectives as part of its energy transition policies. These targets aim to increase the share of renewable energy in the overall energy mix and encourage the deployment of RES projects. However, these targets generally focus on overall renewable energy production rather than specific caps on installed capacity in the electrical network.