France has reached an agreement with the European Union on hydropower development, the French Prime Minister’s office said. The deal, signed on July 2, 2025, is part of efforts to accelerate Europe’s energy transition and expand renewable power capacity, newswires have reported.
The agreement provides for the construction of new hydropower facilities, modernization of existing plants, and strict environmental safeguards, including impact assessments and habitat preservation. The EU will support the initiative with financial aid and technical assistance.
French state-owned utility EDF will make 6GW of hydroelectric capacity available to third parties under the deal, according to the prime minister’s office. The capacity will be sold through competitive auctions overseen by the Energy Regulatory Commission (CRE), Reuters reported.
France has faced long-standing criticism from the European Commission over its management of hydroelectric concessions, including EDF’s dominant role and delays in reopening expired concessions to competition.
Prime Minister François Bayrou’s office said the country would move from a concession-based system to an authorization model, with terms still to be defined. The plan allows current operators to remain in place, which Bayrou said is necessary for safety, water management, job retention, and regional value creation, Reuters said.
The agreement excludes facilities operated by Compagnie Nationale du Rhône (CNR), which has a unique legislative status. CNR, partly owned by Groupe Caisse des Dépôts, local authorities, and Engie SA, operates 4GW of hydropower capacity and produces roughly one-quarter of France’s hydroelectricity, according to the company.
Analysts say the deal could attract new investment in hydropower infrastructure and related industries such as engineering and energy services. Its success will depend on how French companies navigate regulatory and environmental requirements and market competition with other renewable sources.
