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Surge in subscriptions for nuclear power at regulated price (France)

3 Dec 2019

The Energy Regulation Commission (CRE) has noted a significant increase in ARENH requests from alternative suppliers for 2020, reaching 147 TWh (+10.5% compared with 2019). As demand was higher than the 100 TWh cap, the regulator decided that the 73 electricity suppliers which made an order will each receive around 68% of the amount they requested.

The ARENH law (Accès régulé à l'électricité nucléaire historique, 2010) obliges EDF to sell part of its nuclear generation (up to 100 TWh/year, i.e. around a quarter of its production) to alternative suppliers on the wholesale market at a regulated price (“ARENH price”), which has been set by the CRE at €42/MWh since 2012.

Due to extended outages of its reactors, EDF reduced its nuclear generation objective for 2019 from 390 TWh to 384-388 TWh in November 2019. The regulator demanded to French and European authorities an increase in the ARENH volume ceiling, which is no longer appropriate to the current situation on the French electricity market.

 

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