EDF wants to auction off nuclear production allocation contracts
In the first half of 2025, EDF will offer nuclear production allocation contracts (CAPN) for delivery in France through a Europe-wide auction mechanism aimed at consumers consuming at least 7 GWh of electrical energy per year and at suppliers and producers with a capacity to physically collect electricity in France. EDF intends to auction 1800 MW of electricity per year (i.e. 10 TWh) for the delivery of electrical energy in France, starting on January 1st, 2026.
The CAPN is a contract for a period of 10 to 15 years covering a share of the power of the historic nuclear fleet (excluding Flamanville 3). Buyers will be free to resell the electrical energy purchased.
The auction is an ascending-clock auction for the initial contribution in €/MW payable upon signature of the contract. In addition to the initial contribution, the price paid for electrical energy includes a monthly contribution based on the costs of the nuclear fleet with a component in €/MW covering the fleet's operation and maintenance costs and a component in €/MWh covering upstream and downstream fuel costs. In addition to this monthly contribution, a fixed and flat-rate management cost is invoiced over the duration of the contract. The levels of the monthly contribution and the management cost are determined by EDF and are therefore not auctioned.
Buyers will have to provide guarantees according to their rating.