The capacity mechanism aims to secure electricity supply on the 22 peak days each year when consumption is highest in France, during the 7-10am and 5-8pm time slots. The first auction (2026–2027) marks a major turning point in the transition to a centralized mechanism.
On February 10, 2026, the French energy regulator (CRE) published its decision (No. 2026-43) setting the parameters for the new capacity mechanism covering the 2026–2027 delivery period. The mechanism is structured around the Cost of New Entry (CONE).
Based on this value, the CRE proposes:
– an overall price cap of €72k/MW/year (i.e., 1.2 × CONE)
– an intermediate price cap (PPI) of €15k/MW/year for existing assets, based on the “missing money” of operational CCGT (Combined Cycle Gas Turbine) plants. The CRE selected a PPI at the very low end of the range proposed by CCGT operators (which they estimated at €45k/MW/year).
A measured recognition of the role of storage:
The technology coefficient reflects the contribution of assets to the security of electricity supply during peak periods. It reflects the fact that certain assets cannot generate power throughout the entire peak window (6 hours). For batteries, the technology coefficient is set at 0.55, multiplied by a storage duration coefficient (0.58 for 2 hours; 0.86 for 4 hours; 1.00 for 6 hours or more). In practical terms, this gives the following certification levels for the first auction (2026-2027):
– 2-hour BESS: 32%
– 4-hour BESS: 47%
– 6-hour BESS: 55%