Tevali Partners's analysis of the state of wind energy in France

In 2019, we conducted a comprehensive assessment of the onshore wind market in France, covering key topics such as major players, regulations, and technological advancements. This overview is enhanced by various development perspectives deemed most relevant, presented at the end of the study.
 
Despite historically intermittent growth, France has seen significant advancements in the onshore wind sector in recent years. However, the French market lags behind neighboring countries due to overly restrictive regulations that limit the potential of wind energy in France. The market is highly fragmented, with 188 developers (65% of whom are French) contributing to the current operational capacity. A few players, such as EDFEN, Engie, Res, and Energieteam, stand out, with the first two increasingly gaining market share, particularly through external growth operations. Conversely, there are very few French manufacturers: 87% of the turbines installed in France were built by the five global leaders, all of whom are foreign.

Technological advancements are expected to continue in the coming years. Innovations are anticipated in rotors, nacelles, development, grid connection, installations, maintenance, and environmental performance. The competitiveness of the wind sector is thus expected to keep improving.

New types of purchase agreements are gradually appearing in France, such as corporate PPAs. These contracts can provide an outlet for wind farms exiting their purchase agreements. They would allow producers and buyers to mutually hedge against market price fluctuations in electricity. However, uncertainties about long-term market price forecasts could limit consumers' interest in such contracts.

Finally, a new trend might emerge with the consolidation of smaller players. Major sector players, through external acquisitions, are positioning themselves across the entire value chain and increasing their market share. Thus, small entities will either need to reach a critical size to remain competitive or merge to enhance performance in procurement, financing, and energy commercialization, thereby competing with the sector leaders.

Download the report here