France is discovering the hard way that having too much of a good thing—say, electricity—isn’t always cause for celebration. The country’s grid operator, RTE, has issued a sharp-tongued warning to power suppliers and traders who’ve been flouting basic rules and fanning an already toasty power glut. In a letter dated April 11, RTE called out near-daily breaches that are throwing the country’s energy balance into chaos and triggering pricey emergency measures.
Why the drama? Picture a grid groaning under a tidal wave of renewables, nuclear, and imports, while domestic demand lounges around like a cat in the sun. With solar and wind output surging, and incentives for producers to cut generation when prices dip below zero, the market has become erratic.
France, you’ll recall, returned to its throne as Europe’s top power exporter last year thanks to its nuclear fleet roaring back online. But being the continent’s electric sugar daddy has come with side effects—namely, grid stress, export curbs, and price spreads that are now doing yoga stretches across borders.
In this latest scolding, RTE reminded players that they are legally required to submit accurate next-day production forecasts and balance supply with customer demand. Seems basic. But when they don’t, RTE is forced to step in with costly patches—halting output, begging neighboring grids for help, or curtailing consumption like it’s 1979 again.
No names were named, but RTE made it clear: if you break the rules, you’ll foot the bill.
In July, France, which gets 70% of its electricity from nuclear energy, rolled out a plan to limit power export to neighboring countries. In September, power prices in France turned negative as demand sagged with an increase in renewable power, highlighting the challenges of managing an energy grid that is even partially reliant on intermittent sources.
By Julianne Geiger for Oilprice.com
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