The framework for the new capacity mechanism is finally complete and published, bringing to a close what has been a real regulatory marathon that often felt more like a race against time.
The main milestones in its implementation were as follows:
- Article 19 of Law No. 2025-127 of February 14, 2025 (Finance Act for 2025), which established the legal foundations of the scheme (Articles L. 316-1 to L. 316-13 of the Energy Code)
- Then a year-end rush in 2025:
- 22/12/2025: approval of the mechanism by the European Commission for a period of 10 years starting in November 2026, with a total estimated aid amount of €20 billion over 10 years, i.e. €2 billion per year (potentially €20,000/MW based on 100 GW of obligations). The Commission considered that the mechanism complies with EU treaties and the 2022 Guidelines on State aid for climate, environmental protection, and energy.
- 31/12/2025: publication of Decree No. 2025-1441 of December 31, 2025, relating to the capacity mechanism established to ensure security of electricity supply. This decree accordingly amends the Energy Code:
- Chapter V of Title III of Book III of the Energy Code
- Book III, Title I of the Energy Code is supplemented by Chapter VI
The mechanism
The CRE, during its workshop of February 6, 2026, summarizes the new mechanism (comparing it to the current one):
| Previous mechanism | New mechanism | |
|---|---|---|
| Demand |
Decentralized demand:
|
Centralized demand:
|
| Number of auctions | Up to 15 per delivery year (DY-4 to DY+3) |
Reduction in the number of auctions
|
| Remuneration framework | Administered price (equivalent to a price cap) | Global price cap (€72/kW) and intermediate price cap for existing capacities (€15/kW) |
| Multi-year contracts | Ad-hoc mechanism (AOLT) | Possibility of multi-year contracting for new capacities in certain auctions |
| Support for low-carbon flexibility | Ad-hoc mechanism (AOFD) | Volume reserved for low-carbon flexibility in auctions |
