France's Electricity Overcapacity: A Double-Edged Sword

France is experiencing electricity overcapacity due to increased renewable and nuclear output coupled with reduced industrial demand. This has lowered power prices and increased exports. RTE urges faster electrification to balance supply and demand, highlighting the need for European cooperation and infrastructure upgrades to manage surplus power.

France is grappling with a period of electricity overcapacity, as reported by grid operator RTE. The surplus is driven by declining industrial use and rising renewable and nuclear energy output.

This situation has resulted in plummeting power prices, marking the lowest levels since mid-2018, following a spike during the 2022 energy crisis. The crisis had pushed industries to close factories and slash power consumption.

Despite France's record-breaking power exports, the grid's constraints are evident. RTE calls for swift European-level action to enhance electrification projects, such as electric vehicles and hydrogen production, to counterbalance this overcapacity.

(With inputs from agencies.)