French offshore wind farms to curb production during negative prices – and what is France’s energy mix

The French government and two offshore wind developers have amended their power purchase agreements, which will enable the shutdown of offshore wind farms during periods of negative prices.

The changes permit the farms to either reduce or completely stop production during times of negative pricing.

This comes as a response to issues grid operators across Europe face due to excess power generation from solar and wind projects. At the same time, energy demand does not rise quickly enough to soak up all the additional energy.

Until this new deal, electricity generated by Électricité de France’s Fécamp and Saint-Nazaire offshore wind farms and Iberdrola’s Saint-Brieuc, which have a total capacity of 1.5GW, was purchased at a fixed price under government subsidies.

That sometimes resulted in the electricity being sold at negative prices in the market, straining public budgets and the grid.

The new PPAs aim to stabilise supply and demand. The government has already tested the effectiveness of the production reductions at these wind farms from May 10 to May 11.

Except for the smallest facilities in the country, most recent renewable energy installations utilise a system that encourages producers to pause operations during times of negative pricing. Even larger offshore wind farms in the country will soon be able to use a similar adjustment mechanism.

About Stu Turley 4798 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.