2023-09-07 17:43:00
EDF will offer a volume of 100 megawatts (MW) of electricity which can be sold in the form of auctions at a rate of 1 to 5 MW per day.
By PM with AFP
© SAMEER AL-DOUMY / AFP
Published on
EFrom September 18, DF will experiment with the auction on the markets of volumes of electricity deliverable in 2027 and 2028, illustrating the group’s desire to provide competitive energy and to ensure better visibility on its revenues. For this experiment, it will offer a volume of 100 megawatts (MW) of electricity which can be sold in the form of auctions at a rate of 1 to 5 MW per day, until exhaustion.
The target offer: alternative suppliers and traders in the wholesale electricity market. Through this system, the group 100% owned by the State wants to offer offers “on longer maturities”, which would be synonymous with “more stable prices”, summarized Karine Revcolevschi, director of Upstream optimization. Aval Trading, during a press presentation.
More stability
Today, players and suppliers can buy electricity on the markets to cover the needs of their customers over three years – therefore until 2026 – but not beyond, argues EDF. These offers will allow market players “to have medium-term products that are currently poorly available” at a fixed price, indicated Marc Benayoun, executive director in charge of the Customers, Services and Territories division.
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“Opening prices for the periods 2027 and 2028 is in the interest of customers,” because they are currently listed less expensive than for the years 2025 and 2026, he said. The year 2022, marked by an unprecedented escalation in energy prices, “revealed that today our customers have high expectations regarding price visibility and stability”.
Soon the end of Arenh
These solutions also offer “a model that is financially sustainable by the EDF group,” added Marc Benayoun. With this experiment, EDF is preparing the end of Arenh, the regulated mechanism which imposes it until 1is January 2025 to sell part of its electricity to its competing alternative suppliers. A system accused of leading to “under-remuneration” of the company, according to the words of its CEO, Luc Rémont. However, EDF is at the foot of an investment wall: it will have to find 25 billion euros per year to finance old and new nuclear and renewable infrastructures.
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EDF has been pleading for several months for long-term electricity sales contracts, a framework which would allow it to set the prices of its nuclear production more freely, while limiting the exposure of end customers to volatility, according to the group.
“It’s a way for the consumer, all consumers, very large and small, to see their price land and no longer be victims of volatility dictated by exogenous phenomena. For producers, it is obviously the way of having a form of visibility on their income which triggers investment,” argued Luc Rémont in June at the congress of the French Electricity Union (UFE).
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