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The Act on Accelerating the Production of Renewable Energy, known as the Renewable Energy Act, was published in the Official Journal on March 11, 2023. In this article, Tennaxia reviews its key updates, particularly the provisions that directly impact businesses.
Renewable Energy Act: Adoption context and current status
The Act No. 2023-175 of March 10, 2023, on accelerating the production of renewable energy (EnR) is primarily intended to help France catch up on its renewable energy targets. In 2020, France was the only European country that failed to meet its renewable energy goals, reaching only 19% of renewables in its final energy mix instead of the 23% target.
According to figures from the Ministry of Ecological Transition, in 2022, renewable electricity sources met 20% of France's electricity demand.
Against this backdrop, the Act and the Multiannual Energy Program (PPE) set the following objectives:
- increase the share of renewable energy in France's final energy consumption to 33% by 2030 ;
- increase renewable electricity production capacity by allocating 1 GW of offshore wind power per year starting in 2024, tripling installed photovoltaic capacity by 2028, and bringing installed wind power capacity to 35 GW;
- increase the share of renewable heat to 38% by quintupling the amount of heat and cold supplied through networks.
The Renewable Energy Act represents the legislative component of the government's plan to accelerate renewable energy. It will be accompanied by a second bill aimed at speeding up procedures for the construction of new nuclear reactors.
What does the renewable energy law contain?
The renewable energy law aims for four main objectives:
- planning the deployment of renewable energy across regions;
- simplifying authorization procedures for renewable energy projects;
- utilizing land that is already developed or has no major environmental concerns to deploy solar, wind, and other energy sources ;
- improving the sharing of value generated by renewable energy, particularly with local communities hosting the projects.
Regarding planning, the law notably creates a territorial planning mechanism for renewable energy and simplifies the modification of urban planning documents required for project development. It also formalizes a planning process for offshore wind power and streamlines the applicable regulatory framework.
Concerning the simplification of authorization procedures for renewable energy projects, the Renewable Energy Law notably streamlines grid connection procedures. It also recognizes the imperative reason of major public interest (RIIPM) for renewable energy and energy storage projects (new article L211-2-1 of the Energy Code).
One of the major points of the law is the utilizing already developed land for renewable energy projects. This section will be covered in greater detail in the following chapter, as it establishes certain obligations directly applicable to businesses.
Finally, the Renewable Energy Act aims for a better distribution of the value generated by renewable energy projects with the local communities that host them. To this end, it establishes a mechanism for redistributing the value generated by renewable energy production projects and enables local authorities and residents to take equity stakes in these projects. It also provides clarifications regarding the framework for renewable electricity or gas purchase agreements.
Renewable Energy Act: what are the impacts for businesses?
Requirement to install solar panels on parking lots larger than 1,500 m2
As mentioned previously, the Renewable Energy Act aims to facilitate the use of land that has already been developed or is of no major environmental interest for the development of renewable energy.
One of the flagship measures of the law is its Article 40 which stipulates that outdoor parking lots larger than 1,500 m2 must be equipped, over at least half of their surface area, with solar carports incorporating a renewable energy production system (e.g., photovoltaic panels).
The requirement applies to outdoor parking lots existing as of July 1, 2023 and those for which a planning permit application was submitted on or after March 10, 2023 :
- July 1st , 2026 for parking lots with an area of 10,000 m2;
- July 1st , 2028 for those with an area between 1,500 m² and 10,000 m²
Note: adjustments to the implementation schedule are provided for parking lots managed under a concession or public service delegation.
💡 In the case of multiple adjacent parking lots, the law allows managers to mutually agree to pool the requirement, provided that the total area of the solar canopies installed corresponds to the sum of the canopies required for each individual parking lot.
The law specifies that this requirement does not apply to outdoor parking lots where the manager chooses to implement other renewable energy production methods that do not require solar canopies (provided that the energy production is equivalent).
In addition, a number of exemptions are provided, including:
- when outdoor parking lots are subject to technical, safety, architectural, heritage, environmental, or site and landscape constraints that prevent the installation of solar canopies;
- when it is not possible to comply with the requirement under economically acceptable conditions (notably due to the aforementioned constraints);
- when the parking lot is shaded by trees over at least half of its surface area.
Please note: failure to comply with this requirement may result in a fine for the parking lot operator (renewed annually until compliance is achieved) of up to:
- €20,000 for parking lots with a total surface area of less than 10,000 m2 ;
- €40,000 for parking lots with a total surface area of 10,000 m2or more.
Requirement to install solar panels on new non-residential buildings: scope extended starting in 2025
As a reminder, the 2021 Climate and Resilience Law extended, as of July1st, 2023, the requirement to incorporate renewable energy production processes or greening systems into certain new non-residential buildings (Article L171-4 of the Construction and Housing Code).
This applies to:
- new construction, extensions, and major renovations of buildings or parts of buildings used for commercial, industrial, or artisanal purposes, warehouse buildings, hangars not open to the public that are used for commercial operations, and covered parking lots accessible to the public, with a footprint greater than 500 m² ;
- new construction, extensions, and major renovations of office buildings or parts of buildings with a footprint greater than 1000 m2.
The Renewable Energy Act provides for a strengthening of this obligation as of January 1st , 2025, the date on which the minimum ground coverage requirement of 1000 m2 for office buildings and parts of buildings will be reduced to 500 m2.
Furthermore, as of this date, new constructions, extensions, or major renovations of over 500 m2 will also be affected:
- administrative buildings or parts of buildings;
- hospitals;
- sports, recreational, and leisure facilities;
- school and university buildings or parts of buildings.
The law gradually increases the minimum coverage requirements for the roofs of affected buildings. This target is set at 30% as of July 1st 2023, then 40% as of July 1st 2026, and finally 50% as of 2027.
Requirement to install solar panels or green roofs on existing non-residential buildings larger than 500 m2
Another major change: Article 43 of the Renewable Energy Act mandates the integration of renewable energy production processes or greening systems into existing non-residential buildings with a footprint of at least 500 m2 (new Article L171-5 of the Construction and Housing Code).
This requirement applies, starting Januaryst , 2028, to buildings or parts of buildings existing as of July 1, 2023 or for which a planning permission application was submitted before July 1, 2023.
This applies to:
- commercial, industrial, artisanal, or administrative buildings;
- buildings or parts of buildings used as offices or warehouses;
- hangars not open to the public that are used for commercial operations;
- hospitals;
- sports, recreational, and leisure facilities;
- school and university buildings or parts of buildings;
- covered parking lots accessible to the public.
However, several exemptions are provided, notably for:
- buildings or parts of buildings where installation is rendered impossible due to “technical, safety, architectural, or heritage constraints”, in particular “if the installation is likely to increase a risk or presents an insurmountable technical difficulty” ;
- buildings or parts of buildings for which the work is not feasible “under economically acceptable conditions”.
💡 For ICPE subject to declaration, registration, or authorization for which the obligation would be incompatible with the characteristics of the installation, an order must define the cases in which all or part of the obligation is waived or subject to specific implementation conditions.
Requirement to establish a land development plan for companies with more than 250 employees
Article 4 of the Renewable Energy Act introduces a requirement for companies with more than 250 employees as of January 1, 2023, to establish a land development plan by March 10, 2025, with a view to producing renewable energy.
This plan must include quantitative targets broken down by type of energy production.
Possibility of long-term contracts for biogas, photovoltaics, and wind power
Finally, note that the law facilitates the signing of direct renewable electricity or gas purchase agreements between producers and consumers by establishing a specific legal framework and the possibility of including hybrid support mechanisms that combine power purchase agreements (PPAs) with public support.
The goal is twofold: to enable the construction or continued operation of renewable capacity by ensuring long-term revenue for operators, while also securing the supply of green electricity for signatory consumers, particularly industrial companies.
Legislative and regulatory sources
Act No. 2023-175 of March 10, 2023, on the acceleration of renewable energy production
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