The French government and three offshore wind farms, have signed amendments to their power purchase agreements (PPAs).
The changes permit the farms to reduce or halt production entirely during times of negative pricing, as reported by Bloomberg.
The decision has been taken as the grid operators across Europe face challenges from excess power generation due to the ongoing expansion of solar and wind installations, while energy demand remains retained.
The electricity generated by the Fécamp and Saint-Nazaire offshore wind farms, both operated by Électricité de France and Iberdrola’s Saint-Brieuc, was purchased at a fixed price until recently via government subsidies. At times, this electricity was even sold on the market at negative prices.
This “had a negative impact on public finances and on the electric system,” the French government has stated.
The newly signed amendments therefore aim to balance supply and demand effectively at all times. The government noted that output reductions have already been successfully implemented from 10 May to 11 May 2025.
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By GlobalDataThe government has also indicated that larger onshore wind farms benefiting from older feed-in tariffs will soon be able to take in similar adjustment mechanisms.
Except for the smallest facilities in the country, most recent renewable energy installations utilise a feed-in premium system that encourages producers to pause operations during times of negative pricing.
