France Aims to Boost Decarbonised Power Production by 20% over Decade, Encourage Demand

Why It Matters

The policy reshapes France’s energy mix, accelerating nuclear and electrification while signaling long‑term market stability for clean‑tech investors.

Key Takeaways

• Decarbonised electricity target 650‑693 TWh by 2035.
• 70% of consumption to be decarbonised by 2035.
• Wind and solar caps cut ~20%, nuclear raised 5%.
• Goal of 7 million EVs by 2035, fivefold increase.
• EV subsidies to be included in 2027 budget.

Pulse Analysis

France’s energy planning law, known as the PPE, marks a decisive shift in the nation’s climate strategy. By anchoring a 650‑693 TWh decarbonised electricity target for 2035, the decree pushes the country toward a 70% clean‑energy share, up from the current 60%. The legislation, delayed for three years, balances ambition with fiscal prudence, promising state support that will not overburden public finances. This framework provides a clear roadmap for investors and utilities, outlining the scale of generation needed to meet the new benchmarks.

A notable feature of the PPE is its rebalancing of the renewable mix. While wind and solar tender volumes are trimmed by about 20%, nuclear capacity targets receive a modest 5% uplift. This adjustment reflects France’s confidence in its mature nuclear fleet to deliver reliable baseload power, while still encouraging renewable growth through targeted tenders. The policy signals to developers that future projects must align with a more nuanced portfolio, where nuclear underpins stability and renewables fill the remaining gap, potentially reshaping financing structures and risk assessments.

Electrification is another cornerstone, with the government aiming for 7 million electric vehicles by 2035—a five‑fold increase. By earmarking subsidies for EV purchases and corporate fleets in the 2027 budget, France is creating demand‑side incentives that complement the supply‑side generation goals. This dual approach is likely to stimulate automotive supply chains, charging infrastructure rollout, and ancillary services such as grid balancing. For the broader European market, France’s plan offers a template for coordinated decarbonisation that balances technology mix, fiscal responsibility, and consumer adoption.