France sets its first long-term capacity auction: 82 GW for 2030-31, price caps kept
Victoria Shinder2 min readFrance's energy regulator CRE has published its deliberations on the parameters for the first long-term auction of the country's new capacity mechanism, covering the winter of 2030-31. The proposal goes to the minister responsible for energy.
How the new mechanism works. The capacity mechanism pays operators of generation, storage and demand response for committing to be available at times of system stress, mainly peaks. In its permanent form it runs two auctions: a long-term one about four years before delivery and a short-term one about a year before. The first short-term auction took place on 6 July 2026 for winter 2026-27.
The parameters. Based on a parameter report from transmission operator RTE, which followed a wide consultation, CRE proposes a methodology for the demand curve and the technical and economic parameters. It sets a target volume of 82 GW, of which 3 GW may be contracted on a multi-year basis, and says the volume is consistent with the security-of-supply objective, electrification and the related growth in demand. Both price caps are kept at current levels: 72 euros per kW and 15 euros per kW (the PPG and PPI caps). CRE says certification parameters allow each technology to develop and that it paid particular attention to batteries.
A cautious approach, and why. CRE notes that RTE expects only a moderate security-of-supply risk, with a need for 0 to 2.5 GW of new capacity depending on the scenario. It therefore argues for a prudent approach to cost so as to limit the burden on consumers, to be revisited as participants learn and as RTE and CRE review how the auctions work.
The transition problem. The auction falls in a transition from the old mechanism. Under the new calendar, participants have to commit for winter 2030-31 before they can secure their contribution for winters 2027-28, 2028-29 and 2029-30. CRE plans further methodological work for later auctions.
Source: CRE, deliberations on the parameters of the 2030-2031 long-term capacity auction — https://www.cre.fr/actualites/toute-lactualite/la-commission-de-regulation-de-lenergie-publie-ses-deliberations-relatives-au-parametrage-de-lenchere-de-long-terme-2030-2031-du-mecanisme-de-capacite.html