France Revises Offshore Wind PPAs to Tackle Negative Price Periods

June 3, 2025, by Adnan Memija

The French government and three offshore wind farms have signed amendments to their power purchase agreements (PPAs), allowing them to halt production during periods of negative electricity prices.

The three wind farms that signed PPAs are the 500 MW Fécamp, the 480 MW Saint-Nazaire, and the 496 MW Saint-Brieuc.

According to the Ministry of Economics, Finance and Industrial and Digital Sovereignty, the changes were made following consultations with producers and are aimed at reducing the cost on public funds and supporting grid stability.

The offshore wind farms were built under purchase obligation contracts, which gave them an incentive to produce at maximum output, whatever the market price.

According to the ministry, the model involved buying electricity at a fixed rate, regardless of negative market rates, which had a negative impact on public finances and the electricity system.

The contract amendments require producers to participate in the balancing mechanism and to ensure the balance between supply and demand in the power system at all times, the ministry said.

The first shutdowns were already carried out during the weekend of 10-11 May.

The ministry said that newer support contracts for renewable energy are no longer in the form of a purchase obligation but rather based on top-up payments, except for the smallest installations. This type of contract encourages operators to suspend output during periods of negative prices, according to the ministry.

The 500 MW Fécamp features 7 MW Siemens Gamesa wind turbines installed on gravity-based foundations. Fécamp is the third commercial-scale offshore wind project in France to be completed, following the Saint-Nazaire and Saint-Brieuc offshore wind farms.

The Saint-Nazaire offshore wind farm comprises GE Haliade 150-6 MW turbines, installed at a site located between 12 and 20 kilometres off the coast of the Guérande peninsula.

The 496 MW Saint-Brieuc offshore wind farm is located 16 kilometres off the northwest coast of France in the Bay of Saint-Brieuc in the English Channel.