[Nuclear in Numbers] Electricity Price Volatility: Challenges for Nuclear Energy

With the series “Nuclear in Numbers”, RGN sheds light on energy challenges through key data. Today, we analyse electricity prices in 2023 and 2024 in France on the spot market, where energy is bought and sold in real time.

In 2024, spot prices generally followed the trends observed between 2014 and 2019. On average, the spot price has now returned to a level similar to those seen before the health and energy crises. However, this year has been marked by strong price volatility. Negative prices have also increased significantly, rising from 147 hours in 2023 to 359 hours in 2024. This trend is explained by the increase in renewable energy production, particularly solar and wind, combined with lower electricity demand than in previous years.

In addition to negative prices, 2024 also saw significant price spikes. In November, wind power generation reached its lowest level since 2014, with very low wind levels in central and northern Europe. This led to an increase in electricity prices, with peaks exceeding 800 euros per MWh on the forward electricity market in Germany. This rise impacted energy prices within the EU.

CFDs: A Key Tool for Nuclear Energy in the Face of Price Volatility

In a market characterised by strong price volatility, it becomes essential to implement a stable and predictable support mechanism, especially in a context where there is a clear intention to develop new nuclear power plants.

Indeed, the increase in negative prices threatens the margins necessary to finance the renewal of the nuclear fleet. In this context, Contracts for Difference (CFDs) would provide EDF with a solid financial framework, helping to limit the risks associated with market fluctuations and stimulate long-term investment. They allow for fair investor remuneration while limiting exposure to price risk. ■