Even if EDF hinders rather the movement says GDF Suez

The French hydroelectric concessions will be one of the hot issues of the re-entry. Today, the France has 399 dams with a power greater than 4.5 MW, operated for 80 of them by DTE. But, at the request of Brussels, the articles of concessions will be progressively subjected to competition. After years of discussion, the calls for nominations must begin this fall for the concessions ended the horizon 2011-2012. Offers discounts will be in 2010. And by 2020, the equivalent of at least 3,000 megawatts of capacity will be so engaged on a total installed capacity of 23.500 megawatts. Even if EDF hinders rather the movement, says GDF Suez...

This renewal course excites the appetite of European operators. German E.ON, the Italian Enel, Iberdrola Spanish or Norwegian Statkraft are not mystery of their interest in the French dams. Second hexagonal actor with the company national du Rhône (CNR) and SHEM, GDF Suez also wants to increase its hydraulic production capacity at the opening to competition of the concessible Park. "We want to win new concessions in France", said yesterday his boss, Gérard Mestrallet, during a visit of the Génissiat dam, near Annecy. The group, which currently provides 25 of the French hydroelectric production, would like to dispose of 4,000 to 4,500 megawatts in 2013, against 3.723 megawatts today.

Why such an interest and to each other Dams and power plants first to produce electricity at a very low cost of the order of 20 euros per megawatt-hour on average in France, according to the report Birraux-battle. Investments are indeed already amortized. What generate substantial margins on the basis of a market around 60 euros per megawatt hour price currently. Hydroelectricity is a way to cope with peaks in consumption, the production capacity of EDF for example is available in ten minutes. It is finally a way to develop the share of renewable energy and to diversify the energy portfolio of a large European Group.

Points outstanding

Several points remain nevertheless to settle. Indeed, it appears necessary to adopt a logic of string taking into account the interdependence of the dams rather than be confined only to concessions maturing. In this case, the call for tenders would be across a valley. If this logic were applied, the renewal should be a minimum of 5,000 megawatts of capacity in competition.

The level of royalty applied to renewed grants is also a debate. Proportional to the revenue from electricity sales, the levy was capped to 25 and ceiling during the Grenelle of the environment. GDF Suez, ceilings would be a bad signal. It would open the door to actors purely financial, may reduce the investment in maintenance. "If it déplafonne the levy, the financial test risk of paramount," said Henri Ducré, responsible for the energy France of GDF Suez branch. The group argues today for a ceiling of 30 for the royalty. For the moment, the CNR is the only French player of the hydraulics to pay six years a royalty from 24 to the State. EDF or the SHEM is there face.