Renewable energies: a decree sets a floor for termination indemnities

Decree No. 2026-997 of October 26, 2026, reforms the support mechanisms for electrical renewable energies. Published in JORF No. 0252 of October 28, 2026, under NOR ECOR2606960D, it amends Title I of Book III of the Energy Code and sets a floor of 10,000 euros per installed megawatt for the indemnities due in the event of early termination of a contract by the producer. The text is sponsored by the Ministry of Economy, Finance, and Industrial, Energy, and Digital Sovereignty.

A floor of 10,000 euros per megawatt

Article 2 rewrites the first three paragraphs of Article R. 311-27-3 of the Energy Code, applicable to contracts concluded following a competitive bidding process based on Article L. 311-12. Henceforth, the specifications of the procedure determine the method for calculating the indemnities owed by the producer who terminates their contract prematurely.

Two methods are available, at the discretion of the specifications:

• calculation based on the additional cost or charges resulting from the contract, from its effective date until termination;
• calculation based on the theoretical loss of earnings for the State, over the period beginning at termination, for a duration equal to the minimum between the remaining duration of the contract and a duration fixed in the specifications, of at least three years.

In both cases, the indemnity “cannot be lower than a floor amount of 10,000 euros per installed megawatt, or installed peak megawatt for photovoltaic installations.” Article 6 transposes this mechanism to Article R. 314-9, for contracts concluded outside of tenders based on Article R. 314-2, with the method then being fixed by the orders provided for in Article R. 314-12.

An exception for small-scale photovoltaics

The decree provides a derogation expressly reserved for small-scale photovoltaics. The order relating to installations “with an installed capacity of less than 36 kilowatts peak” may set the amount of the indemnity “at a zero or flat-rate value,” according to conditions it determines.

Furthermore, the text relaxes ministerial oversight regarding contract parameters: in Articles R. 311-27-6 and R. 314-14, the word “proposed” becomes “determined” and the mention “and approved by the minister in charge of energy” is removed. Article 4 further extends the information owed to unsuccessful candidates in Article R. 311-29, by noting that the grievances cited may lead to financial penalties under Article L. 311-15.

Adjustment and network services open to producers

A new article R. 314-17-1 specifies that contracts concluded pursuant to article L. 314-1 do not prevent the installation from participating in the services necessary for the operation of public transport and distribution networks and the adjustment mechanism. The producer may submit bids:

• downwards, under the conditions set by the orders provided for in article R. 314-12;
• upwards, when buyers have requested the shutdown or limitation of its production.

The producer remains remunerated under the purchase contract taking into account the volume it would have produced, with corrections being taken into account for the adjustment only if the offered volume was submitted within a price range defined by order. Article 8 simultaneously creates article R. 314-14-2, organizing the compensation for non-remunerated periods, the amount of which does not depend on actual production and may be capped.

Payment Schedule and Data Transmission

Article 10 replaces, in article R. 314-35, the reference to “hours with positive or zero spot prices” on the day-ahead market with that of “periods defined in the orders” for the payment of the remuneration supplement, and allows for the integration of self-consumed volumes if the orders so provide. The “hourly step” of article R. 314-38 becomes a “defined time step” by order, and article R. 314-39 is repealed.

Installations participating in the adjustment, transport network services, or flexibility services must transmit their data no later than April 15 of each year, or September 15 for gas cogeneration eligible for the remuneration supplement.

This text extends Decree No. 2026-976 of October 20, 2026, published in JORF No. 0247 of October 22, 2026 (NOR ECOR2614686D), which had already revised the tender rules: representation of candidates for the signing of the contract with EDF and the tie-breaking of equal offers via a price proposal and, failing that, by lottery. It is part of a context of downward revision of public expenditure: the report on the advance decree of October 14, 2026, announced 406 million euros in commitment authorizations and 416 million in payment credits cancelled under program 345 “Public Energy Service,” as renewable production is deemed more profitable during periods of high prices.

For winners of calls for tenders and producers under purchase obligations, the change is twofold: exiting a contract will cost at least 10,000 euros per megawatt, while the valuation of curtailments and flexibility becomes accessible without losing the benefit of the support. The implementing orders, which will set the remunerated periods, price ranges, and compensation caps, will determine the actual extent of the effect on the electricity bill.

Source : Official Journal of the French Republic, JORF No. 0252 of October 28, 2026, decree No. 2026-997 (NOR ECOR2606960D).