PARIS (Reuters) – EDF announced on Thursday the launch of an experimental auction system with the placing on the wholesale electricity market of volumes to be delivered in 2027 and 2028, the public electrician wishing to increase its visibility and that of consumers against a backdrop of high prices and the need for massive investment.

The group, which targets in particular alternative electricians such as TotalEnergies or Engie and traders, plans a total volume of 100 megawatts (MW) for each of the two products, which can be sold through a succession of daily auctions, relating to a maximum of 5 MW, organized from 18 September.

While the French wholesale market currently makes it possible to purchase electricity for the years 2024, 2025 and 2026, EDF wants to promote the development of new contracts covering longer maturities, arguing that these are usually come with more stable and competitive prices for the end customer.

The group is also part of the prospect of the end of the current regulation of Arenh (regulated access to historical nuclear electricity), on December 31, 2025, which was designed to promote competition but also contributed to degrading the accounts of EDF, heavily indebted.

Its CEO, Luc Rémont, indicated at the end of August that the company could offer “double-digit” contracts for 2027 and 2028, while wholesale electricity prices, which have jumped with the difficulties of the French nuclear fleet and the war in Ukraine, still exceed 100 euros per megawatt-hour (MWh).

The prices from the auctions for 2027 and 2028 “should not be very different from what we have seen in recent weeks (…) so for these horizons (…) a little lower than 100 euros”, estimated Marc Benayoun, executive director of EDF in charge of the Customers, Services & Territories Division, during a press conference.

“Our objective is to bring out enough volumes of activity so that these prices are representative and that they can make it possible to form retail prices, for EDF but also for the others”, he added.

“It’s an experiment, so we start small and, when there is more demand, we will put more volumes on the markets”, also said Marc Benayoun.

EDF has been defending for several months the conclusion of long-term electricity sales contracts in order to set its prices more freely – today very largely regulated – to finance its investments in existing power plants and in new means of production, both renewable than nuclear.

While pleading for “a new consensus” on the price of electricity in France, Luc Rémont declared this summer that the group’s investments should reach some 25 billion euros to meet its needs.

(Report Benjamin Mallet; edited by Blandine Hénault)

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