France reaches agreement with the European Commission on hydropower

The dispute between France and the European Commission over the French system of hydraulic concessions, which has lasted for almost 20 years, is said to be on the point of being resolved. The agreement in principle reached between the Commission and the French government provides for the expired concessions to be replaced by an authorisation system, the details of which will have to be specified. The agreement rules out the transfer of ownership of dams from the State to electricity companies. The future long-term operating licence agreements to be concluded between the State and the future managers will only concern the facilities operated by EDF and SHEM (Société Hydroélectrique du Midi, a subsidiary of Engie), while Compagnie Nationale du Rhône will have a specific status. Under the agreement, 6,000 MW of capacity currently operated by EDF will be made available to EDF's competitors, who will be able to market the energy produced to their customers. This "virtual capacity" will be sold at auctions organised by the Energy Regulation Commission.