Energy crisis provides an economic model for wind energy

ADVERTISEMENT

When two finalists in the presidential election want to retreat onshore wind, the sector is afraid of its future. And, for good reason, while Emmanuel Macron lowered his ambitions on this subject, ” Landscape conservation Marine Le Pen, in addition to the moratorium, wants to be dismantled purely and simply, putting existing equipment at risk directly.

Faced with these suggestions, we will hear from experts in this sector while the 13.7 GW project is currently under consideration. And this time around, we’ll sway the economic debates that have often been used against them. As the budget equation has been reversed, they say: These long-funded giant blades can spot French territory, especially in the northern and eastern parts of the country, and in fact ease finances in the era of these generated energy prices. Association France Energy Eorienne (FEE). Therefore, the state is ” Revenue »To get « Protect purchasing power “Citizen.

State net income from 2025

In 2021, the wind sector actually handed over all of the € 1.8 billion subsidies it received to the state, so ” No longer a financial burden “Welcome the association. Above all, if we believe in that prediction, the sector needs to generate more. Exceptional recipe In 2022, it will be in the black of 3.7 billion euros. It will bring him back this amount. Equivalent to the budget of the Ministry of Culture “Emphasize FEE requiring the state to leave by the end of the year.” Pause Of certain politicians blaming wind power Expensive and unnecessary “.

“The wind power sector will donate 34% of what we have received since the start of support at the end of 2003,” said its president, Ann Catherine de Tourtier.

Above all, the calculation Finally It benefits the French budget. France has so far slumped this sector to support its development. Because it corresponds to all the public support she has received since 2003. ” Will be donated by the last quarter of 2024 “Or, if the price is in line with the Commission de Régulation (CRE) forecast, it will be close to € 11 billion.

By 2035, wind power could even bring an estimated € 18 billion in net revenue to France if it achieves the ambitious goals set by France in this area. We look forward to Anne-Catherine de Tourtier as it encourages candidates to rethink their position and develop this renewable energy source on a large scale.

ADVERTISEMENT

Wind power benefits from rising prices

But this new profitability doesn’t come from nowhere. This is, in fact, the surge in electricity “spot” prices. This averages around € 50 per MWh to over € 250 today. This makes wind turbines very competitive compared to fossil fuels, which were previously thought to be cheap, but whose prices continue to rise. In addition to this, renewable energy has collapsed in 10 years, so the cost of renewable energy is more structurally lower. Offshore wind, which has long traded at € 200 per MWh, has fallen to € 45 (future purchase price of Dunkelk Park), well below the current price of fossil gas on the market.

Three Questions to Understand Soaring Electricity Prices in France

However, the contract provides monetary compensation to renewable energy operators if the “spot” price is lower than the target price and is fixed during the bid call. And in return, these prices are higher. “” Mechanisms that benefit both wind power and the state “Wind producers are proud of FEE today as they can take advantage of the crisis to repay their’debt’.

And if the association estimates that everything will be refunded by 2025, it’s because electricity market prices remain high, flirt at around € 200 per MWh until that day, and then stabilize at around € 90 per MWh. .. According to CRE’s outlook, over the next 10 years. “” By orders of magnitude, FEE’s wind revenue estimates seem realistic. “Check the CRE source gallery..

Uncertain predictions

However, these numbers remain estimates, and today no one knows how to accurately predict price changes in the coming months. The government has long said that rising prices are ” Periodic »And calm down with the arrival of spring, before admitting that it will continue « most likely But for a long time without mentioning the date. The results are even more uncertain as the war in Ukraine, which began almost two months ago, has made the market a little more volatile and left analysts disarmed.

“The CRE calculates public energy service charges once a year, the next assessment will be published only in July, and work is underway,” he tells the CRE.

International affairs can also have a significant impact on the wind industry, but the steel used for offshore towers is now priced at over $ 2,000 per ton, about three times the price a few months ago. “” The state of the supply chain […] Now unhealthy […] Because there is more inflation than everyone expected last year. “Thus recently warned Sheri Hickok, general manager of GE Renewable Energy, a French subsidiary of American General Electric, and to emphasize what the war has. Everything is messed up In the case of onshore wind, the cost can be increased accordingly.

War in Ukraine: After oil, gas … Steel prices skyrocket