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last mo.

Paris Picks Dalkia-Led Group for €15 Billion, 25-Year Heating Concession to Replace Engie in 2027

The award requires Council of Paris approval in mid-December.

Image
L'usine d'incinération d'Ivry-sur-Seine (Val-de-Marne), dont la combustion des déchets alimente le réseau de chaleur urbain de Paris.
Dans le centre de dispatching, à Paris 12e, de CPCU, la compagnie parisienne de chauffage urbain.
Centrale géothermique de Paris dans le XVIIè arrondissement

Overview

  • The city named a consortium of Dalkia, Eiffage and RATP Solutions Ville as the preferred operator for the CPCU network, displacing Engie after nearly a century, with a Council of Paris vote scheduled for December 16–19.
  • The concession would run for 25 years from January 1, 2027 under a transition in 2026 and is valued at roughly €15 billion for France’s largest district heating system.
  • City officials say 69% of users would see lower bills in the first year of the new contract from 2027, with the average tariff projected at about 16% below the price of gas.
  • Paris plans a SEMOP structure giving the municipality ownership of 12 production sites and veto rights on strategic decisions, and about 550 staff would be retained with their existing statuses.
  • Dalkia’s plan includes €3.4 billion in investments to lift renewable supply to 76% by 2034 and target 100% by 2050, with a new steam plant slated for 2031 and expanded geothermal capacity, while Engie is set to receive a €3 million candidacy indemnity as opposition figures criticize the timing.