French offshore wind farms to curb production during negative prices

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.