[E] The Economics of Renewables Expansion: Price and Profit impacts in France
Le 22 mai 2025
Abstract
This paper examines the medium-term effect of renewable capacity expansions on electricity prices and the production of other generation sources in France, using data from 2015 to 2023. Specifically, it investigates how the growth of solar and wind energy has influenced hourly wholesale electricity prices, as well as the production and profitability of other generation sources. France is a particularly interesting case study because, unlike in other markets where renewables have displaced production from traditional high-emission sources, the French market has traditionally been dominated by a low-carbon source: nuclear power.
