France Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in france, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Overview

The French energy sector is a mature market, subject to very strong competition. The National Energy Mediator reports that there are 30 suppliers that share the global energy market, with the French market dominated by three major players: 

  • EDF (Electricite de France) – Electricity supplier/nuclear
  • Engie – Natural gas supplier, LNG 
  • TotalEnergies – Mixed including fuel & gasoline

Approximately two-thirds of France’s electricity comes from the country’s 56 nuclear reactors, and France has been an electricity exporter for the past 30 years. Just over half of the country’s energy is provided by primary domestic production.  France imports most of its fossil fuels and has extensively diversified its geographic sourcing. With less greenhouse effects, electricity and gas have progressively replaced oil and coal use in the main industrial sectors, although oil-based products are still the norm in the transportation sector.   

Renewable energy is playing an increasing role in France’s energy mix. In 2023, renewable energies accounted for about 22.2 % of France’s gross final energy consumption, up from 20.5 % in 2022. France has committed to phasing out coal-fired electricity generation. The last major coal plant, Cordemais, is scheduled to shut down its final units by March 2027. Green energy remains central in government recovery and decarbonization policy, through measures under France Relance and subsequent multiannual energy programming (PPE), including support for renewables deployment, electrification, hydrogen, solar and wind power.

Leading Sub-sectors

Nuclear: 

France’s Multiannual Energy Program (PPE), published in April 2020, outlined a plan to reduce the share of nuclear power in electricity generation from over 70 % to 50 % by 2035, with renewables taking a greater role. However, policy has since shifted. In February 2022, President Macron announced the construction of six new EPR2 reactors, with studies for up to eight additional units, as well as $1.08 billion to support the development of small modular reactors (SMRs). In March 2023, Parliament approved legislation facilitating nuclear expansion as part of France’s long-term energy strategy. Nuclear power is reaffirmed as a cornerstone of efforts to decarbonize electricity, ensure energy security, maintain competitiveness, preserve household purchasing power, safeguard industrial jobs, and develop technological expertise.

France currently operates 56 nuclear reactors across 18 sites (19 if Flamanville-3 is included), making it the world’s largest nuclear fleet per capita. In 2024, nuclear output reached about 362 TWh, or 67 % of total electricity production (RTE, CRE). The nuclear sector is a major employer, with around 220,000 direct and indirect jobs and over 3,000 companies active in the value chain.

The 1973 oil shock triggered France’s large-scale nuclear build-out: initially 16 reactors of 900 MWe and 20 reactors of 1,300 MWe after 1976, followed by 4 units of 1,450 MWe between 1996 and 2000, bringing installed nuclear capacity to 63.2 GWe.

The Flamanville-3 EPR (1,650 MWe), after years of delay, was finally connected to the grid in December 2024 and is undergoing commissioning. Beyond power plants, France also hosts uranium conversion facilities, radioactive waste management centers, and R&D sites with experimental reactors.

France historically ranked as the world’s largest net exporter of electricity. In 2022, however, it became a net importer for the first time since 1980 due to widespread reactor outages. It has since regained strong export capacity in 2023 and 2024. To extend reactor lifetimes, in 2021 the ASN (Nuclear Safety Authority) authorized the continued operation of 32 900 MWe reactors beyond 40 years, subject to upgrades. This extension underscores the urgency of both lifetime management and next-generation reactor development to secure France’s long-term low-carbon energy supply.

LNG 

With Russia’s war of aggression against Ukraine, the European Union set ambitious targets to cut dependence on Russian gas, triggering a sharp increase in LNG demand and the development of new regasification capacity across Europe. France became the largest LNG importer in the EU in 2022 and 2023. Imports more than doubled between 2021 and 2022, and the country remained the top entry point for LNG in Europe in 2024. The four onshore regasification terminals at Fos-sur-Mer (Bouches-du-Rhône), Montoir-de-Bretagne (Loire-Atlantique) and Dunkerque (Pas-de-Calais) have been operating close to full capacity. In addition, a fifth facility, the floating storage and regasification unit (FSRU) Cape Ann in Le Havre, was commissioned in October 2023 for an initial period of five years, adding around 5 billion cubic meters of annual regasification capacity (≈ 45 TWh). To ensure European energy security, the United States has become the EU’s largest LNG supplier, with exports to Europe more than doubling since early 2022 and accounting for nearly half of EU LNG imports by 2024.

Smart Grids 

The French smart grids sector is now a core component of the energy transition, supporting the integration of large volumes of renewables, the electrification of transport, and decentralized energy production. Smart grids rely on digital and automation technologies to make electricity networks more flexible and resilient, enabling real-time management of demand and supply. By 2024, France had completed the nationwide rollout of 35 million Linky smart meters, providing the foundation for demand-side management and data-driven services. Network operator RTE and distribution system operator Enedis are investing heavily in digital infrastructure and flexibility services, supported by the European Union’s “Digitalising the Energy System” initiatives. According to the Think Smartgrids association, the sector represents about 15,000 jobs today and is expected to grow strongly. Market size is projected to reach around $6.48 billion by 2030, with up to 60,000 jobs, reflecting the acceleration of renewable energy integration, electric vehicle charging, storage deployment, and local energy communities.

Renewable Energies 

Renewable energy plays a steadily larger role in France’s energy system. In 2023, renewables accounted for about 14 % of primary energy consumption and 22 % of gross final energy consumption, compared with just over 20 % the year before. The sector provides an estimated 60,000 direct jobs.The French renewable mix remains diverse. Biomass and wood energy still represent the largest share at around one-third of renewable supply, followed by hydropower (12 %), biofuels (12 %), wind (12 %), and heat pumps (10 %). Solar power accounted for about 6 %, biogas 5 %, and other sources such as geothermal, marine, and renewable waste about 9 %. France is the European Union’s leading producer of hydropower and one of its top producers of biofuels and wood energy. While traditional sources remain important, the most dynamic growth has come from onshore wind, solar PV, and heat pumps. Offshore wind is beginning to contribute, with the Saint-Nazaire wind farm operational since 2022 and other projects advancing along the Atlantic and Channel coasts.

Solar 

At the end of 2024, France’s installed solar PV capacity reached about 24 GW, compared with 16 GW in 2022. Solar PV generation amounted to nearly 25 TWh in 2024, or about 5 % of national electricity consumption, up from 19 TWh in 2022. The French solar PV sector employs over 8,000 people and continues to expand rapidly, supported by both large ground-mounted projects and rooftop installations. France ranks 4th in Europe for installed PV capacity.

The solar thermal market also remains active, with projects commissioned in Narbonne, Creutzwald, Cadaujac, and Pons. Major operators include Newheat, La Française de l’Énergie, Savosolar, Dalkia, and Kyotherm, with the sector supported by ADEME for R&D and deployment.

Hydrogen 

France currently consumes around 900,000 tons of hydrogen per year, mostly for industrial uses, representing about 3 % of national greenhouse gas emissions. Under France Relance, the government invested about $2.1 billion between 2020 and 2022, with an additional $7.5-9.72 billion to be deployed by 2030.

The national hydrogen strategy promotes the production of renewable and low-carbon hydrogen through electrolysis powered by nuclear and renewable electricity, while also exploring carbon capture for “blue” hydrogen. By 2030, the target is to install 6.5 GW of electrolyzers, producing about 700,000 tons of renewable or low-carbon hydrogen per year, contributing to a planned 35 % reduction in industrial emissions. Hydrogen is central to France’s goal of achieving carbon neutrality by 2050.

Wind Power 

By the end of 2024, France had about 22.3 GW of onshore wind and 1.5 GW of offshore wind in operation. Total wind generation reached approximately 47 TWh in 2024, or 8.7 % of electricity production, a slight decrease from 2023 due to less favorable wind conditions despite capacity additions.

France remains the 4th largest wind power market in Europe, behind Germany, Spain, and the United Kingdom. The Saint-Nazaire offshore wind farm (480 MW, 80 turbines) has been fully operational since late 2022, and additional offshore projects are under construction at Fécamp, Courseulles-sur-Mer, Saint-Brieuc, and Dieppe-Le Tréport. In February 2023, Parliament adopted a renewable energy acceleration law, setting targets of 100 GW of solar PV and 40 GW of offshore wind by 2050, simplifying permitting procedures for faster project delivery. France’s multiannual energy programming (PPE) sets nearer-term goals of 24.6 GW onshore and 2.4 GW offshore by 2023, and 34–35.6 GW onshore and 4.7–5.2 GW offshore by 2028.

Resources

RTE (Réseau de Transport d’Électricité). French Electricity Report 2024. https://www.rte-france.com/en 
SDES – Ministry for the Ecological Transition. Key Figures on Energy in France, 2024 Edition. https://www.statistiques.developpement-durable.gouv.fr 
CRE (Commission de Régulation de l’Énergie). Annual Report 2024. https://www.cre.fr/en

Trade Associations

  • Ademe (French Agency for Ecological Transition)
  • Association Françaises du Gaz – AFGAZ - French Gas Association
  • Conseil François de l ‘Energie – CFE - French Council for Energy (member of the World Energy Council)
  • Syndicat des Energies Renouvelables - S.E.R. - French Renewable Energies Trade Association
  • Société Francaise des Energies Nucléaires – SFEN - French syndicate for Nuclear Energy
  • Union Française de l’Electricité – U.F.E. – French electricity union
  • Think Smart Grids - French Solutions for Smart Grids

Trade shows

  • Smart Grid + Smart City - Paris - Porte de Versailles
  • WNE - World Nuclear Exhibition - Paris Nord Villepinte
  • Enlit – Paris – Porte de Versailles
  • Hyvolution – Paris Expo – Porte de Versailles
     

Contact:  U.S. Embassy France - U.S. Commercial Service Trade Specialist
Priscille.Odje@trade.gov
Tel: +33 (0) 1 43 12 71 98  

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