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Leaving the European power market wouldn’t be the answer in accordance with specialists

Astronomical payments and a delegated wrongdoer. From the Republicans to the Nationwide Rally, by way of La France insoumise, all level the finger on the European power market, accusing it of being liable for the rise in electrical energy payments. Monday, it was Bruno Retailleau, president of the LR group within the Senate, who qualified of “insanity which aligns the worth of electrical energy with that of fuel” and demanded France’s exit from this method. That is additionally what Manuel Bompard, LFI deputy, stated on Monday on the microphone of BFMTV. Jordan Bardella has him castigated an “absurd mechanism”, in a textual content revealed on Monday, and known as to mimic Spain and Portugal, which might have come out of it. Even Bruno Le Maire was circumspect, calling for a decoupling of fuel and electrical energy costs. The Minister of the Financial system, nonetheless, dominated out any exit from this market.


What these political figures are pointing to is a part of the European market. Since 1996, it supplies a number of measures, reminiscent of the tip of monopolies, or that the price of the worth of electrical energy is aligned with the price of the final plant. It’s this final mechanism that these elected officers denounce.

The final plant refers back to the fuel plant, which is known as final on the wholesale market, after renewable energies and nuclear. On this wholesale market, producers resell to suppliers and enormous customers. Fuel-fired energy vegetation are known as on if the renewable or nuclear provide will not be ample. “The large benefit of the market is that at each second it’s going to choose the most affordable plant to fulfill a given stage of demand”, summarizes with 20 minutes Boris Solier, head of the Power Economics grasp’s diploma on the College of Montpellier.

A “pretty logical” system

“We’re going to name the ability stations so as of accelerating marginal price, explains the researcher. The marginal price is the variable price of manufacturing, ie the gasoline price. For a fuel plant, it’s how a lot fuel I have to generate electrical energy and at what value I purchase this fuel. »

This final energy plant balances provide and demand. “This method is sort of logical. He sends an incentive to producers, provides the lecturer. As quickly as there’s a producer who can successfully cowl his variable prices when the worth of electrical energy is excessive sufficient [en raison de la demande], he produces. If the worth of electrical energy is 50 euros and the manufacturing price of a nuclear plant is 30, the plant will produce. If the worth falls to 10, it won’t produce, as a result of the demand is just too low. It’s a system that’s fairly virtuous, as a result of it encourages producers to supply a market value that’s near their manufacturing prices. »

Spain and Portugal have obtained a derogation to develop the European market

Spain and Portugal haven’t left this market, however have obtained a short lived derogation, remind 20 minutes Anna Creti, professor of economics at Paris Dauphine-PSL College and member of a assume tank to reform the European power market. Spain has thus applied a ceiling on the worth of fuel used for the manufacturing of electrical energy. “They’ve a nationwide value which is a bit disconnected from the European value insofar as they subsidize their electrical energy producers, recollects Boris Solier. These producers purchase their fuel on the European market. After they place their order on the electrical energy market, they keep in mind a fuel value of 40 euros as an alternative of taking into consideration a value of 170 or 200 euros, which clearly lowers the price of producing electrical energy. electrical energy in Spain. »

If households have seen their payments drop, the impact will not be as important as anticipated, say the researchers. “This measure will not be impartial for the buyer, it should be financed if we would like fuel at a value decrease than that of the market, underlines Anna Creti. There’s a tax between one and 7 euros monthly on the electrical energy invoice. As well as, “many extra Spanish households are at a charge that’s near the wholesale market in comparison with France”, provides Boris Solier.

The scenario in France is totally different from that of Spain and Portugal

The scenario of Spain and Portugal may be very totally different from that of France, remind these specialists: because of the geographical location of those two nations, their electrical energy networks are much less interconnected with the remainder of Europe. These nations obtain liquefied fuel, so they’re much less depending on Russian fuel delivered by pipeline.

Might France go away, no less than partially, this European market? Consultants interviewed by 20 minutes hardly take into account it. France is essentially the most interconnected nation in Europe, which permits it to import power from its neighbors when it wants it and to export it when manufacturing exceeds demand. Traditionally, France is extra of an exporter of electrical energy due to its nuclear fleet, remarks Anna Creti. An exit from this market “dangers exposing it much more to hazards”, summarizes Stefan Aykut, professor of sociology on the College of Hamburg and affiliate researcher on the College of Paris-Est, whereas the reactors of nuclear energy vegetation should not not returned to their full capability and that France has fallen behind within the growth of renewable energies.

“We want as many various power sources as attainable”

“Within the present disaster scenario, what’s secret’s diversification,” says the specialist. As many various power sources as attainable are wanted. What the European market and the interconnections permit is slightly to cushion shocks. »

These additionally make it attainable to direct costs downwards or no less than to restrict will increase, argues the researcher: “Once we look intimately at what prevents costs from hovering much more, it’s as a result of there may be numerous counterbalancing dangers. For instance, this European market has renewable wind energy capacities. Right now [mercredi 4 janvier], wind energy is working at full capability in Germany, which signifies that a part of the shortage of manufacturing in the intervening time in France may be compensated by this renewable power. If you inject renewables, it lowers costs, as a result of they produce at very low costs. »

The European Fee has initiated discussions on how one can get out of the emergency measures and develop this European market. On nineteenth December the Power Ministers of the 27 Member States agreed to cap fuel costs. Nevertheless, the extent of this cover is properly above present market costs, that are at the moment falling.

Even when Greece has tabled a proposal to decouple electrical energy costs from the worth of fuel, “for the second it’s troublesome to envisage what varieties of reforms may be put in place, summarizes Boris Solier. The value on this market is for the second above all a thermometer: it reveals that now we have a deficit of electrical energy and that manufacturing prices have soared. Nothing has but been determined in Brussels.

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