Solar: record drop in electricity production prices

The government's latest call for tenders for the installation of large-scale solar power plants has selected around 100 projects.

From north to south, 10 of the country's 13 major metropolitan regions are concerned. The increase in volumes and the introduction of incentives have reduced the average price per MWh by 5.5%.

This is good news for the energy transition in French territories. The fourth part of the call for tenders covering the 2016-2019 period for the construction of large-scale solar power plants has selected 103 projects. The installed capacity thus amounts to 727.8 MWp, equivalent to the annual energy consumption of some 100,000 households.[1]

The energy transition is taking hold everywhere

While Nouvelle Aquitaine climbs to the top spot in installed capacity with 168.6 MW, Occitanie stands out in terms of the number of projects selected: 25 parks for a total of 157.3 MWp. The only southern region not to appear on the podium, Provence-Alpes-Côte d'Azur (79.5 MWp), is relegated to fourth place by the Centre-Val de Loire region with nearly 85 MW. The regions in the northern half of the country are therefore not absent, quite the contrary. Hauts-de-France, Brittany, Grand Est, Pays de la Loire, and Bourgogne-Franche-Comté represent 35% of the volume of selected projects. Finally, with 14 projects of 69.4 MWp, Auvergne-Rhône-Alpes remains one of the most dynamic regions in terms of solar installations.[2]

Major groups in the lead

Unsurprisingly, this new call for tenders gives pride of place to the biggest energy players. According to the analysis by Finergreen, Engie comes in first, with 25 parks of 229 MWp (including CNR[3]). Next come Quadran, a subsidiary of Total, which won 15 parks of 100 MWp and Urbasolar with 63 MWp. Together, these three groups account for nearly 54% of the allocated volume. This dominance is also reflected in the cumulative results of the four calls for tenders launched since 2016. Engie emerged as the big winner with 554 MWp, far ahead of Urbasolar, which won 200 MWp, and Total/Quadran, third, with 191 MWp.

Record price drop

The large number of projects selected, combined with the production volume offered by this fourth call for tenders, has once again made solar power increasingly competitive. Thus, for large-scale solar power plant projects (between 5 and 30 MWp), the average price is €52/MWh. This is the lowest ever reached in France for such farms. A 5% drop compared to the prices of the previous call for tenders for this type of installation. For the Ministry of Ecological and Inclusive Transition, "the bonus on the environmental relevance of the site implemented in this call for tenders" has also borne fruit.

Catching up

These results are an opportunity for Nicolas Hulot's ministry to congratulate itself. The latter points out that France is thus respecting its commitments, made during the "One ​​Summit Planet", to increase the volume of renewable energy production. Despite this observation, our country still lags behind its European neighbors. The latest data published by the Statistical Office of the European Union ranks it among the poor performers in the community area. With 16% of its final energy consumption coming from renewable sources at the end of 2016, France is below the European average (17%). We must therefore make up for lost time. The 2020 target (23% renewable energy in final consumption) seems unattainable in the opinion of the Renewable Energy Union. The target set for 2032, increasing the share of renewable energy to 32%, seems more attainable in light of the government's announcements and the stated commitment. To this end, professionals in the sector, citizens and elected officials are now expecting other commitments and concrete measures from the government to accelerate the energy transition in the regions.

Cyrille Arnoux, web editorial manager

[1] Figure from the Ministry of Ecological and Inclusive Transition

[2] Source: Ministry of Ecological and Inclusive Transition

[3] Compagnie Nationale du Rhône