Adjustment mechanism: Turning a regulatory obligation into an opportunity

 

For several months now, we’ve been hearing a lot about the Adjustment Mechanism or AM in the French RE sector. And with good reason, the Balancing Mechanism will become compulsory from January 1, 2026 for all renewable assets of 10 MW or more connected to the distribution network.

This new obligation confirms the crucial importance of integrating renewable energies into the management of the French power system. It also puts back on the agenda the reinforcement of D-1 scheduling (participation in the AM requires the declaration of a Call Programme).  Unfortunately, this scheduling obligation is currently insufficiently respected, yet it is of strategic importance for balancing management. RTE is planning to introduce a system of financial incentives for schedulers from 2026 onwards.

 

Adjustment Mechanism in deficit of downward supply deposits

Also known as the Tertiary Reserve, the Balancing Mechanism is a system that enables RTE to balance the generation-consumption system in real time, in order to avoid any supply disruption.

Actors (consumers and producers) participating in the Balancing Mechanism will thus propose balancing offers to RTE upwards (increase in production, decrease in consumption) and/or downwards (decrease in production, increase in consumption) according to their technical and economic constraints.  These offers will constitute a pool of reserves that can be used by RTE according to its real-time balancing needs.

In recent years, RTE has reported a shortage of downgrades. Since 2024, the grid operator has had to resort to emergency reductions in renewable energies to safeguard the power system. It was against this backdrop of declining balancing capacity that the obligation to participate in the MA was applied to RE producers. Initially, this obligation was applied to assets with a capacity greater than 10 MW connected to the transmission network in January 2025, then extended to assets connected to the distribution network, with the obligation taking effect on January 1, 2026.

The growing need for grid flexibility is leading to two major changes: the gradual extension of obligations to a wider range of producers, and the introduction of penalty mechanisms in the event of non-compliance. Against this backdrop, it is essential to anticipate the implications of this new regulatory framework now, by providing appropriate support.

 

Greensolver is here to help you

Moreover, this obligation is not only a constraint, it can also represent an opportunity. Adjustment offers represent an additional source of income for producers, provided they understand how the MA works and what is at stake, and establish the right strategy to meet this obligation. Today, producers have two options for meeting this requirement: manage their participation in the MA internally, or delegate it to an Aggregator.

Greensolver, as a market expert and asset manager, now offers you tailor-made support to help you meet this obligation on time, and deploy the strategy best suited to your assets.

This support is divided into 3 parts:

  • This training course will give you a better understanding of how the Balancing Mechanism works, the “prerequisites” for participating in it, and its technical and economic implications.
  • Strategic and operational support based on :
    • analysis of your existing contracts, to identify action levers and the best ways of integrating the AM component into your contractual scheme.
    • negotiations with balancing participants and counterparties, where applicable
  • We could also offer you assistance with the technical issues surrounding your assets, particularly in terms of remote management and connection to aggregators, so that the balancing operator can automatically control your facilities.

 

For more information, our sales and technical teams are at your disposal to meet your needs and objectives: Contact us now 

 

Written by our Strategy, BESS Power and PPA Team