The French Energy Regulatory Commission (CRE) has issued a favourable opinion on a draft ministerial order proposing a cost threshold of €1 million per MW of reserved grid connection capacity for certain investments aimed at facilitating renewable energy integration into electricity networks in France’s non-interconnected areas.

The proposal, outlined in Deliberation No. 2026-210 of 21 October 2026, establishes technical and economic criteria for determining which new infrastructure and grid reinforcement works may be included in the regional renewable energy grid connection schemes (S2REnR).

The objective is to improve the planning of electricity infrastructure required to accommodate additional renewable capacity while ensuring that proposed investments meet technical and economic suitability criteria.

A €1 million per MW limit on reserved connection capacity

The draft order proposes that the unit cost of new construction and reinforcement works included in S2REnR schemes should not exceed €1 million per MW of reserved connection capacity.

This threshold would establish an economic benchmark for assessing investments included by network operators in connection schemes, covering both new infrastructure and upgrades to existing facilities.

The proposal also requires infrastructure works to demonstrate their technical relevance from an electrical system perspective, following the methodology set out in the transmission system operator’s technical reference documentation.

According to CRE, the proposed threshold is consistent with preliminary estimates from ongoing reviews of connection schemes, as well as historical investment costs for high-voltage electricity infrastructure.

The regulator considers that introducing a common threshold could improve project assessment and strengthen the planning of investments required to connect additional renewable generation.

Exceptions to ensure renewable capacity can be connected

One of the key elements of the proposal is that the economic threshold would not necessarily prevent projects exceeding the limit from being included in connection schemes.

Under Article D.361-7-6 of the French Energy Code, the technical and economic criteria may be waived where applying them would exclude infrastructure necessary to achieve the overall connection capacity established by the relevant state authority.

This exception is intended to prevent cost-control requirements from becoming an obstacle to meeting renewable energy development targets.

CRE welcomed this provision, considering that it would maintain economic discipline in investment selection while allowing essential infrastructure to proceed where necessary to achieve planned connection capacity.

Annual adjustment of grid connection costs

The draft order also provides for annual adjustments to the €1 million per MW threshold to reflect changes in electricity infrastructure construction costs.

The adjustment would be based on France’s TP12a public works index, which covers energy and communications networks, excluding fibre-optic infrastructure.

According to the regulator, this mechanism would allow the economic threshold to be updated periodically in line with investment cost developments.

CRE notes that the same index is already used to adjust financial contributions associated with renewable energy grid connection schemes.

The regulator also recommends that network operators assess the implementation of the threshold to determine whether it remains appropriate and whether future adjustments are necessary based on practical experience.

Grid planning in France’s non-interconnected areas

The proposal forms part of the regulatory framework governing S2REnR schemes, which coordinate electricity infrastructure development for renewable energy connections in France’s non-interconnected areas.

These schemes identify the network infrastructure that must be built or reinforced to accommodate the renewable energy capacity targets established by the relevant authorities.

They also determine estimated investment costs and establish mechanisms for sharing certain infrastructure expenses among renewable energy producers connecting to the network.

According to CRE, the connection capacity provided under these schemes is reserved for renewable electricity generation facilities for a period of ten years.

Developers are required to cover the costs of their project-specific connection infrastructure and make financial contributions towards shared infrastructure included in the schemes.

This approach is intended to anticipate future grid development needs and coordinate infrastructure investments, rather than addressing each connection request independently.

CRE endorses the draft ministerial order

The initiative forms part of the regulatory implementation of Decree No. 2026-393 of 22 May 2026, which amended provisions of the French Energy Code concerning renewable energy connection schemes in non-interconnected areas.

The decree provides for the establishment of technical and economic criteria to assess which investments may be included in connection schemes, as well as the introduction of a maximum unit cost through a ministerial order.

CRE received the draft order on 28 September 2026 and, following its assessment, concluded that the €1 million per MW threshold provides an appropriate framework for controlling the costs of new construction and reinforcement works.

In its deliberation, the regulator also linked the proposal to the objectives of the French law of 10 March 2023 aimed at accelerating renewable energy production.

The Commission concluded that the proposed criteria would support more robust electricity infrastructure planning and issued a favourable opinion on the draft ministerial order.

The deliberation will be forwarded to the ministry responsible for energy. While CRE’s favourable opinion represents regulatory endorsement of the proposal, it does not constitute final approval or entry into force of the ministerial order.