France

France

EDF EN's higher generation offsets lower prices

FRANCE: EDF √Čnergies Nouvelles' (EDF EN) renewables unit's earnings rose more than 20% in the first half of the year, aided by an increase in wind power generation.

EDF EN's 20MW Bois de Belfays project in Lorraine, France, was commissioned in 2017
EDF EN's 20MW Bois de Belfays project in Lorraine, France, was commissioned in 2017

The division’s €1.1 billion in earnings before interest, taxation, depreciation and amortisation (Ebitda) was 20.6% higher than the €917 million from the same period one year ago.

Its €2.35 billion in sales was also 20.1% higher than the €1.95 billion in the first half of 2017.

EDF EN stated the increased earnings in its renewables unit was due to higher wind, solar and hydro generation.

It did not give a total figure for wind power output between 1 January and 30 June, however EDF EN stated that its wind power assets in France and Germany produced 14.1TWh and 55TWh respectively.

Wind power generation in France and Germany, therefore, was 3TWh and 3.7TWh more than in the first six months of last year.

These increases in generation were due to better wind conditions and the 1.68GW of new capacity brought online in 2017 and 80MW commissioned so far this year, EDF EN stated.

Increased generation also led to a boost in earnings despite lower spot market prices, the company added.

EDF EN stated that in the first half of the year "several significant periods of wind and photovoltaic power generation" led to negative prices, reaching a low-point of -€76/MWh on 1 January in Germany.

In the first half of the year, the wider EDF conglomerate, EDF Group, acquired the 450MW Neart Na Gaoithe offshore wind project, which will be built in UK waters, with commissioning planned for 2023.

Meanwhile, contracts for three projects off the coast of France, which are being developed by an EDF EN-led consortium, were also confirmed in June — albeit at a reduced tariff.

At the end of that month, it also agreed to sell a 49% stake in a 550MW portfolio of onshore and offshore wind farms in the UK.

EDF EN also rebranded most of its international subsidiaries as EDF Renewables in April in an attempt to "raise the visibility" of the company’s business overseas.

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