PARIS — In late November, just days before facing scrutiny, the government led by Michel Barnier finalized a contract with GazelEnergie for the operation of the Gardanne thermal power plant located in Bouches-du-Rhône. The state allocated €800 million over a decade to purchase electricity generated by the plant.
However, POLITICO has learned that this public funding was not communicated to the European Commission, which, according to former ministerial advisors, should have been done. These advisors suggest that the government may have aimed to avoid an unfavorable response from Brussels.
Transition from coal to biomass
Originally powered by coal, the Gardanne plant was acquired by GazelEnergie in 2019. This subsidiary of the Czech energy group EPH, owned by billionaire Daniel Křetínský, has since been partially converted to biomass, primarily using wood. The company highlights a reduced carbon footprint, claiming a decrease of three-quarters compared to its coal operation as indicated in an impact study published in late April. GazelEnergie also plans to fully phase out coal by 2027.
There was previously a contract between the state and the operator for the purchase of electricity produced, which was officially terminated in 2022 due to rising biomass costs. Observers believe the termination also aimed to capitalize on market prices that were particularly favorable at the time.
Since then, both parties have been negotiating a new agreement, with nearly €1 billion being approved as the power plant had been inactive for several months.
Concerns over favoritism and contract legitimacy
Describing the situation, one former ministerial advisor noted, “It’s a large operation for buying social peace.” The union mobilization at the Gardanne plant has been intense since the announcement of coal plant closures in 2018, with protests continuing to this day. Anne-Laurence Petel, a former Macronist deputy for the region, recalled an incident where she was locked in a temporary office by CGT union members to discuss the issue. She mentioned that other, calmer discussions had also taken place, expressing satisfaction that the project is moving towards a sustainable outcome.
Olga Givernet, who served as the delegated energy minister under Barnier at the time of the new contract’s signing, remains pleased with her decision: “I only unlocked the envelope that was planned [even if] there were some services in Bercy that might have had trouble releasing funds,” she explained to POLITICO in early February.
“Never has any electricity purchase contract been notified,” asserts Camille Jaffrelo, public affairs director of GazelEnergies, arguing that the current arrangement is not a new contract but rather an extension of an existing one. “There is no favoritism for Gazel,” she concluded, emphasizing the considerable demand for electricity in the area.
However, this viewpoint is contested. “This is not the same contract; economic conditions have changed, and the demand has evolved,” contended the aforementioned former advisor. “A new contract had to be created from scratch, logically implying a new state aid,” confirmed another ex-advisor.
State aids typically require approval from Brussels. Furthermore, the power plant is not crucial for the overall functioning of the electrical system, which diminishes any arguments for bypassing notification due to urgent public interest, according to the first former advisor.
Locally, this oversight raises significant concerns: “This is a project that offers very low returns, and the sourcing of wood competes with local projects,” noted Nathalie Chaudon, president of France Nature Environnement in the Provence-Alpes-Côte-d’Azur region, who is actively involved in a public inquiry regarding this sourcing. She plans to contact the European Commission regarding the financial aspects to clarify the situation.
Both Matignon and the Ministry of Industry and Energy declined to comment when approached.