What is the M0 deviation?

In the energy sector, the concept of M0 deviation plays a crucial role for renewable electricity producers. It directly influences the profitability of contracts and the management of aggregation costs. This article explains in detail what the M0 deviation is, how it works, and why it is essential for you, producers, to know it in order to optimize your income.

The M0: a key indicator for your remuneration

Before we get into the M0 deviation, let's recall what the M0. It corresponds to the monthly average of the market price of green electricity in France and was put in place by the publication of three decrees, on 13 December 2016, concerning additional remuneration for wind, hydraulic and geothermal energy. According toArticle R. 314-46 of the Energy Code, the Energy Regulatory Commission (CRE) is responsible for carrying out the calculations necessary to determine the additional remuneration paid to operators of generating plants.

The M0 is a reference price that is used to calculate the “split” between what the aggregator owes and what should EDF OA as part of the remuneration supplement.

There are three main types of M0:

• The classic M0 : the average of positive spot prices for the month.
• The solar M0 : weighted by national solar production.
• The M0 wind turbine : adjusted according to national wind energy production.

Your remuneration is based in part on this M0 price, but it is also impacted by the M0 deviation, which can influence the amount of aggregation fees you have to pay.

The M0 deviation: an element to watch out for in order to optimize your revenue

La M0 deviation corresponds to the difference between the price at which your aggregator sells your electricity on the spot market and the M0 price at which he must pay you.

Let's take a concrete example:

• A solar power plant in Nice produces in the middle of the day, when spot prices are often low.
• A wind power plant in Brittany can produce more in the evening, when prices are higher.
• If the aggregator sells electricity at a price higher than M0, it makes a profit.
• Conversely, if the spot price is below M0, the aggregator incurs a loss.

As a producer, the location of your power plant and its production schedules, versus national production, can therefore influence the M0 deviation, and therefore the pricing conditions that will be offered to you by your aggregator.

The key role of Dan Cabrol and Bohr Energie in managing the M0 deviation

Chez Bohr Energie, Dan Cabrol, pricing expert, ensures that the M0 deviation is anticipated in the offers made to producers. Her job consists in:

• Analyze historical spot price and production data.
• Simulate production variations according to weather conditions.
• Adjust the aggregation fees according to the risk associated with the M0 deviation.

Thanks to this expertise, Bohr Energie is in a position to offer transparent and optimized remuneration conditions to producers, by reducing exposure to risks associated with the M0 deviation.

A strategic asset for renewable energy producers

Knowing the M0 deviation allows you tooptimize your costs and improve your revenues by negotiating more advantageous terms with your aggregator. Bohr Energie, thanks to its expertise, accompanies you to get the most out of your production.

If you want to know more about how the M0 deviation can impact your earnings and how Bohr Energie can help you maximize your earnings, contact us today!

‍