The Commission approves the reform of the French capacity mechanism for electricity supply security.

Brussels, December 22, 2025 – The European Commission has approved, under EU state aid rules, the reform of the French capacity mechanism for electricity, aimed at ensuring an adequate level of electricity production, storage, and flexible consumption, in order to guarantee supply security.

In brief

The European Commission has approved the reform of the French capacity mechanism for electricity.

The mechanism aims to ensure the security of energy supply.

The state aid is estimated at around 2 billion euros per year.

The total budget may reach 20 billion euros over 10 years.

Eligible capacities include production, storage, and demand response.

The mechanism aims for electricity production to cover anticipated demand, including during peak periods or in situations of shortage. Under this system, the electricity transmission system operator (TSO) compensates for the necessary capacity to meet the grid reliability standard, defined as the maximum acceptable number of hours of power interruption per year.

According to the Commission, the mechanism is open to all types of eligible capacities, including electricity generation units, demand response solutions (consumers who reduce their usage during deficit periods), and storage capacities, subject to environmental eligibility criteria.

Based on historical data from the existing mechanism, the state aid budget is estimated at approximately 2 billion euros per year, which corresponds to a total of 20 billion euros over 10 years, subject to the results of each capacity auction organized.

The Commission concluded that the reformed mechanism is necessary to ensure the security of electricity supply and that the selection of capacity providers through competitive auction procedures limits distortions of competition and ensures proportionality of support.

Capacity mechanisms are tools used by some member states to prevent risks of electricity shortages, especially in the context of the energy transition and the increasing share of renewable sources. They are subject to strict oversight by the European Commission to ensure compatibility with the internal market and EU state aid rules.

https://2eu.brussels/ro/stiri/comisia-aproba-reforma-mecanismului-francez-de-capacitate-pentru-securitatea-aprovizionarii-cu-electricitate