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4 key updates to the French legislation

Wednesday, 05 May 2021

In a digital event for issuing bodies hosted by the European Energy Exchange (EEX) on the 29th of April 2021, EEX presented a summary of the French GO Auctions including an overview of key updates to the French legislation related to GOs, summarised herewith. 

In France, French GO auctions for supported production are held on a monthly basis by Powernext, the national issuing body for GOs and mandated auction organizer of which the state is the sole seller. The maximum of auctioned GOs in France corresponds to the total generation of supported renewable electricity and amounts to approximately 40 to 50 TWh per year. Currently the French state only issues and auctions 50% of the volumes available. 

In the most recent auction for January 2021 production GOs which was also the beginning of the monthly disclosure law, all auctioned volumes were sold with the most stemming from Wind technology that also experienced an increase in price. EEX attributed this to an increased interest in Wind GOs and it could be that when participants aren't able to secure volumes in the OTC markets, that they go to the French Auction to secure those volumes.

Market sources who were contacted have expressed that the recent results from the French auctions also had an impact on the EU GO OTC markets with some sources saying they were making their decisions on prices based on the OTC market and French Auctions. 

These updates to the French legislation are meant to reinforce interest in the French GO market and the French GO auctioning system. EEX mentioned that there is a strong rising interest from French corporations for French GOs and that with an increase in volumes available there is a high chance to meet this demand. 

Source:

EEX group