Can green energy suppliers stabilize prices?

In recent years, the price of energy has only increased due to several factors, the war in Ukraine which causes cost instability, the European sanction against Russia which limits the import of gas, and the strong dependence from Europe to this gas. Even more, the gradual reintroduction of the TICFE €21/MWh (domestic tax on final electricity consumption) at its pre-crisis level also contributes to this. Tired of rising prices, a household turns to a green energy supplier to reduce their bills. But are they really capable of stabilizing the price of KWh ? This is the question we are going to answer.

What is a green energy supplier?

In order to fully understand what a supplier isgreen electricity orgreen energywe must first know how it is produced in an alternative way. Here are the main methods:

• Nuclear:
• Uses nuclear fission of heavy atoms like uranium to generate energy.
• Natural gas :
• Gas plants burn this gas from underground deposits to produce energy.
• Oil:
• Energy is produced through combustion. This method is rarely used for large-scale electricity generation today.
• Coal :
• Extracted from mines, this fuel is burned to produce energy.

We cannot deny the effectiveness of these methods for producing energy (nuclear produced 78% of the electricity supplied by the EDF in 2023)(1). But, it is not without its drawbacks:

1. At the end of 2022, Andra counted 1.79 million radioactive waste in France(6).
2. Resource extraction is not only harmful to wildlife, but it also emits gas to greenhouse.

This is where the producers ofrenewable energy come into play: they use an infinite, inexhaustible and eco-responsible source. Indeed, it is from the sun, wind, water and earth that this clean energy is drawn.

• Wind energy :
• Produced by the force exerted by the wind on the blades attached to a rotor. The mechanical force of rotation produces electrical energy.
• Solar energy :
• Uses solar panels that capture sunlight and convert it into energy.
• Geothermal energy:
• Uses natural underground heat and transforms it into energy.
• Hydraulic energy:
• Harnesses the force of water movement to produce kinetic energy using hydroelectric dams(3).

Can we hope for price stability thanks to renewable energies?

During the pandemic, energy prices stabilized due to a drop in demand. But with the post-COVID global economic recovery and the war in Ukraine limiting the importation of natural gasprices are starting to rise again. On the other hand, new regulations, such as the tax on CO2 emissions, also influence these prices. For what ? Because it increases costs for carbon energy producers. This translates into higher prices for consumers.

France, being one of the world leaders innuclear energyis less influenced by this tax than other countries. But she doesn’t escape it.

To achieve long-term price stability, it would be wise to increase the share of renewable energies. It is both a way of detaching ourselves from the variation in the global fuel market, but also of reducing the costs linked to the CO2 tax (therenewable energy is low carbon). The country does not need to be completely self-sufficient to see a drop in costs. They will decline as the share of energy production renewable in France will increase.

What are the economic advantages of green energy suppliers?

As a consumer, why switch now to green electricity suppliers ?

• You will contribute to the ecological transition and the protection of the planet.
• You will participate in job creation and economic development, because producers invest in local projects.

Although the investment in renewable installations is significant initially, the costs decrease in the long term. Its development should enable greater self-sufficiency for the country in terms of energy and stabilize prices for French people and French businesses. On the other hand, the energy transition protects the environment.