The volume of new capacities selected is 377 MW, of the more than 1 500 MW of new capacities offered.
At the Market Access Commission of 27 February 2020 the French electricity transmission system operator RTE presented the results of the first four calls for tender for new capacities. In coherence with the French Multiannual Energy Programme, participation was restricted to low carbon energies, electricity load reductions and storage (CO2 emission threshold of 200g CO2/kWh).
These calls for tenders were launched by the French Ministry of Ecological and Solidarity Transition on June 12, 2019 to develop new capacities that are greener, flexible and useful for security of electricity supply, in accordance with the expectations of the European Commission.
The volume of new capacities selected is 377 MW, of the more than 1 500 MW of new capacities offered. These volumes were selected for the two calls for tenders over the 2021-2027 and 2022-2028 periods. In total, 12 companies were selected:
Call for tenders 2021-2027
Call for tenders 2022-2028
Load reductions represent a third of the selected bids (124 MW); the other two thirds are batteries (253 MW).
The capacity remuneration price, guaranteed to the successful bidders is therefore set at:
- 29 k€/MW for the 2021-2027 period
- 28 k€/MW for the 2022-2028 period
The demand curve, reflecting the value provided for the community, was proposed by RTE and approved by the Ministry of Energy and the French Energy Regulatory Commission.
These calls for tenders are organised with the aim of providing visibility to new capacity operators (generation, demand response or storage) and stability in their revenue over a period of seven years, through a guaranteed capacity price.
Proposed over 4 periods (2020-2026, 2021-2027, 2022-2028 and 2023-2029), these calls for tenders encourage market players to develop new capacities, useful for the successful energy transition and ensuring security of supply in electricity.
The capacity mechanism is intended to safeguard the security of electricity supply in France. It is based on the obligation for suppliers (and system operators for their losses) to have capacity guarantees matching their customers’ consumption during peak periods. RTE is in charge of operating this mechanism and defining the level of obligation of suppliers, delivering capacity guarantees to capacity operators and certifying the level of contribution of these capacities.
RTE will soon publish a document detailing the results of these call for tenders for new capacities.
February 27, 2020