Electricity prices in France turned negative as falling demand and rising renewable energy production led to the shutdown of some nuclear reactors.
According to Bloomberg’s model, daily consumption will drop by an average of 6 gigawatts from Thursday to Sunday. Sunny and windy weather has led to an increase in solar and wind power generation, prompting the grid operator to ask Electricite de France SA to shut down several nuclear power plants.
While more clean energy is needed to meet climate goals across Europe, a surge in renewable energy production and a battery shortage means reactors sometimes have to be shut down during periods of low demand. This is becoming increasingly common over the weekend in France, which gets about two-thirds of its electricity from its nuclear fleet, and is also happening in the Scandinavian region and Spain.
EDF has shut down its Golfeche 2, Croix 2 and Tricastin 1 nuclear power plants and plans to shut down three others over the weekend. Some renewable energy producers will also have to limit production to avoid paying tariffs amid negative prices.
At the Epex Spot auction, the day-ahead price of electricity in France fell to -5.76 euros per megawatt-hour, the lowest in four years. The German equivalent contract fell to 7.64 euros.