EdF to Sell 2525 MW of Output in September Auction

August 12 2002 – Electricite de France will offer to sell 252 MW of French power generation rights, the largest volume since it began power production auctions in September, traders said on Friday.

The state power utility plans to offer 1620 MW of baseload and 335 MW of peak capacity rights, as well as rights to 570 MW of congeneration which EdF buys from smaller producers under long term contracts.

EdF officials declined to comment on the volume of capacity offered in the auctions that it said will be held in the week of September 9.

But the company has previously said it will offer more capacity as it re-sells capacity of the three-month and six-month contracts from previous auctions that have now expired.

EdF, which started the quarterly auctions on September 11, plans to sell a total of 6000 MW of rights to French power production in three month to three year contracts by November 2003.

It has agreed to allow competition access to its generation as part of a deal to take a controlling stake in Germany’s EnBW.

France’s main power producer offered 1200 MW in its first auction last September, 500 MW in December, 744 MW in March and 983 MW in June.

But in its last auction, EdF did not manage to find buyers for 101 MW of the 803 MW of baseload power generation offered. It sold all 180 MW of peak power.

The lack of interest in the June auction was because of lower summer power consumption and recent curbs on power exports to Germany, traders said.

Traders said the upcoming auctions also had more volume for sale due to the cogeneration capacity, which has only been offered during the first two auctions.

Cogeneration contracts deliver their full baseload output from November to March but may provide a lower baseload output in the summer months, depending on the level of gas prices.

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