It is a problem of the rich which weighs on public finances. With the development of renewable energies, production sometimes exceeds the needs of the population. From then on, electricity prices become negative. A situation that the Energy Regulatory Commission wishes to no longer see.
The end of negative electricity prices?
The electricity market is going through an unprecedented period marked by the frequent appearance of negative prices. This phenomenon, although surprising for consumers, undermines the stability of the French energy system and weighs, above all, on the country's public finances. FFaced with this situation, the Energy Regulatory Commission (CRE) is proposing concrete measures to put an end to it.
Negative prices occur when electricity supply greatly exceeds demand, particularly during periods of high renewable production (wind and photovoltaics). If, in theory, these prices should favor consumers, their effects are very harmful. Thus, electricity producers benefiting from purchase obligation contracts continue to receive compensation, even in the event of negative prices. CRE estimates that the temporary suspension of these parks could have saved 15 million euros in the first half of 2024.
On the other hand, only large industries, purchasing their energy directly on the wholesale market, benefit from these low prices. Households and small businesses remain tied to medium-term contracts, where these fluctuations are invisible.
The CRE wants to put an end to this problem
The CRE has identified several areas for improvement to limit the impact of negative priceswhile maintaining the energy transition. Thus, one of the main recommendations is to amend the purchase obligation contracts for the largest solar and wind farms, if the producers agree. This measure would reduce financial losses for the State.
Secondly, we must encourage more flexible consumption. This involves, for example, revising peak/off-peak rates. Moreover, Enedis and CRE work on different time slots between summer and winter, encouraging households to consume more during the day. Finally, It is necessary to encourage companies to adjust their consumption, for example by temporarily lowering the temperature of freezers during periods of high solar production.
