What is the compensation supplement?

The Remuneration supplement (CR) is a mechanism established by the law on energy transition for green growth. It aims to support renewable energy producers in France. It is a Premium paid in addition to the income generated by the sale of electricity on the market, allowing producers to cover the costs of their installations while ensuring the normal profitability of their projects.

How does the compensation supplement work?

Unlike the device ofObligation to buy (OA), where producers sell their electricity at a guaranteed fixed rate, the additional remuneration requires producers to market their production directly on the electricity market. To compensate for the volatility of market prices and ensure financial stability for producers, a premium is calculated. This bonus corresponds to the difference between a reference rate, determined by the public authorities, and the average market price over a given period of time. Thus, if the market price is lower than the reference rate, the producer receives a premium to fill this gap; if the market price is higher, the producer may have to pay back some of the excess earnings.

What are the goals?

The remuneration supplement has several objectives:

• Market integration : By encouraging producers to sell their electricity on the market, this mechanism promotes better integration of renewable energies into the national electricity system.
• Accountability of producers : Producers are becoming more attentive to market signals and are encouraged to optimize their production according to demand and prices, thus contributing to the balance of the electrical network.
• Reduced costs for the community : By aligning producers' incomes with market prices, the system aims to limit additional costs for end consumers and public finances.

What energies are affected by the additional remuneration?

The remuneration supplement mainly applies to large-scale renewable energy production installations. The sectors concerned include:

• Onshore wind : Wind farms composed of a maximum of 6 wind turbines, with a unit power of no more than 3 MW, i.e. a maximum total power of 18 MW.
• Hydroelectricity : Installations with a power greater than 400 kW.
• Photovoltaic solar : Ground- or roof-top power plants, generally for powers greater than 100 kW, often as part of tenders (unlike other sectors which are “open-ended”).

What are the methods of implementing the compensation supplement?

To benefit from the additional remuneration, producers must:

1. Selling their products on the market : Directly or via an aggregator, an actor specialized in the valuation of electricity on the markets. Bohr Energie supports you in this process.
2. Sign a contract with EDF Obligation d'Achat (EDF OA) : EDF OA is the entity responsible for the management and payment of bonuses related to additional remuneration.
3. Respect the conditions specific to each sector : The precise terms and conditions, such as reference rates and contract terms, are defined by ministerial orders specific to each type of energy.

The remuneration supplement is an essential tool to encourage the development of renewable energies in France, by ensuring that producers receive fair remuneration while fully integrating them into the electricity market. Bohr Energie supports you in all your procedures.

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