What does Macron's election means for renewable energy in France (updated)

Updated - post Government (May 18, 2017)

Emmanuel Macron, France's new President, has run on a pro-renewable platform (doubling Wind and Solar from a relatively low-base), broadly in line with his predecessor's policy (which means trying to progressively reduce the nuclear share).

Since Macron's maiden government was formed, we have received mixed signals: PM E.Philippe is a former Areva executive, whereas Green Activist N.Hulot has been named Energy Minister. Expect the two to lock horns. Overall, the anti-nuclear and pro-nuclear forces should neutralize themselves.

Hence, we do not expect any revolution but a positive pursuit of current trends (more wind and solar, less nuclear), and a structural oversupply of power, weighing on merchant markets.

Here were the key points of Macron's electoral platform:

Vision and budget: "The change of model we propose will reduce our energy consumption, create sustainable and connected cities, reuse our waste, eat more healthy products and produce in France, breathe better quality air and create jobs at home. This transformation is in line with the ambitious commitments made by France at the international level, with the Paris agreements, and internally, with the energy transition law and the law on biodiversity. Of the EUR50 billion of public investment that we anticipate, EUR15 billion will be devoted to energy and environmental transition. To these 15 billion will be added several other fields of action (transport, agriculture ...) having a positive impact on the environment."

Then, Macron's platform laid out 6 major Objectives. We will concentrate on Objective 2, dealing with clean energy

• Objective 2: Accelerate our shifts towards balanced and carbon-free energy production. We will finance the development of renewable energies: by 2022, we aim to double the capacity of wind and solar photovoltaic. The government will have to encourage private investment to mobilize 30 billion euros of investments. We will finish with the procedures that are piled up, shortening and simplifying the procedures for deploying renewable energies. We will focus the research, development and investment efforts of operators on energy storage and smart grids. We will reduce our dependence on nuclear energy, with the goal of 50% nuclear energy by 2025.