France

The net annual balance of electricity exchanges through the cross-border connection with France was as an importer with 6,054 GWh, 15.4 % higher than in 2020. Scheduled cross-border imports totalled 13,442 GWh, 15.2 % higher than the previous year, and exports totalled 7,388 GWh, 35.6 % higher than the previous year. With the exception of February, November and December, the net monthly balances were as an importer in all months.

With regard to the use of energy exchange capacity, congestion was registered for 35.7 % of the hours in the import direction, while 20 % of the hours were congested in the export direction Both of these values are higher than those registered in 2020. This fact confirms the lack of exchange capacity that exists with the European system through the existing interconnections with France. From June to October, the use of the cross-border connection was mainly as an importer (69 % of the hours registered a utilisation rate above 85 %), with 58 % of hours being congested in the import direction. In February, November and December, the use was mainly as an exporter (81 % of the hours) due to high non-availability of nuclear power in France and high renewable generation in Spain in February. In these months there was congestion in the export direction in 53.7 % of the hours.

Exchange capacity and net balance of scheduled exchanges at the cross-border connection with France in 2021

Congestion rents generated in 2021 in this interconnection totalled 318.4 million euros (180.3 million in the import direction and 138 million in the export direction), with 50 % of this total corresponding to the Spanish electricity system. This is 135 % higher than the revenue generated in 2020 (as a result of a 115 % increase in imports and a 168 % increase in exports).

Congestions rents come 51 % from auctions (20.7 % from annual and 30.3 % from monthly auctions), 47.3 % from the day-ahead horizon and 1.7 % from the Replacement Reserves.

With regard to the prices resulting from the exchange capacity auctions, the marginal price of the annual capacity auction for 2021 in the direction Spain → France was equal to 5.03 €/MW, which represents an increase of 48 % in the price compared to the annual auction for 2020 (3.40 €/MW). In the direction France → Spain, the resulting marginal price was equal to 4.36 €/MW, which represents a drop of 17 % compared to the price registered in this direction in the annual auction for 2020 (5.25 €/MW).

The maximum price of allocated capacity in the monthly auctions was registered in September, in the direction France → Spain with a value of 14.10 €/MW, much higher than the 5.00 €/MW in February 2020 and very similar to the 14.05 €/MW recorded in May 2019. In the direction Spain → France the maximum price was reached in December with 25.67 €/MW, more than 4 times the value registered in January 2020.

The exchanges of balancing energy through the cross-border connections with France through the European platform for the management of balancing energy from Replacement Reserves, registered an import value of 340.9 GWh and an export value of 212.3 GWh.

Congestion rents resulting from the cross-border management mechanisms

€ Millions

With regard to the level of utilisation of exchange capacity in the day-ahead horizon, a high rate of utilisation of this interconnection was recorded, slightly more than last year. Thus, in 42.3 % of the hours it was congested in the direction from France to Spain, with an average price difference of 27.2 €/MWh; in 22.9 % of the hours, it was congested in the direction from Spain to France, with an average price difference of 38.1 €/MWh, and in the remaining 34.9 % of the hours there was no congestion in this cross-border connection.

In 2021, only two full days without congestion on the day-ahead horizon were recorded in the interconnection with France. On 70 % of the days, congestion was registered for more than 12 hours, compared to 62 % the previous year.

Hours with and without congestion in the interconnection with France

The average price differential in absolute terms in 2021 was equal to 20.2 €/MWh, more than three times higher than the previous year This value is 10 times higher than the threshold considered by the European Union to qualify a cross-border connection as weak.

Congestion levels of exchange capacity on the day-ahead horizon were higher in the direction from France to Spain every month, except in February, March November and December when prices in Spain were lower than in France. It was precisely in February November and December that the highest percentage of hours with congestion in the direction from Spain to France was recorded. The highest rates of hours without congestion were registered in April and March (with more than half of the hours without congestion).

It can be seen that the price differential in absolute terms is above 2 €/MWh at all times.

The shift in the flow of the balance towards that of an exporter is generally due to the surplus of renewable energy in the Spanish system and high prices in France due to the high non-availability of its nuclear power stations.

Wind power production influences day-ahead market prices and has an impact on the direction of energy exchanges. Thus, in the month of March, the balance of the energy exchange schedules with France was as an importer when low levels of wind power production were recorded in Spain, while the balance became mostly as an exporter when there were high levels of wind power production.

Hours with and without congestion in the interconnection with France and difference in prices of the day-ahead market

In 2021, it was necessary, to a much greater extent than in the previous year, for the Spanish and French electricity system operators to implement coordinated countertrading actions (exchange programmes in the opposite direction to the existing flow established to guarantee the firmness of commercial programmes when faced with capacity reductions) by the operators of the Spanish and French electricity systems, for a total value of 1,062 GWh, a figure higher than the 646 GWh scheduled the previous year, thus setting a new all-time high. 35 % was scheduled in the import direction and 65 % in the export direction.

Evolution of scheduled countertrading actions (CTA) at the cross-border connection with France