Power generation. N/A  N/A



International comparative study on power production costs in non-interconnected zones (countries)

Country : France. .
Client : ERC (Energy Regulatory Commission)
Start Date : 2002
Completion Date : 2003
Value of services : N/C
Funder : ERC (Energy Regulatory Commission)
Associate/Partner : N/A
Description :
The CRE is in charge of calculating the cost of the public service tasks assigned to electricity producers. This cost notably arises from the extra electricity generation charges in non-interconnected areas (Corsica and French overseas Departments). Within these areas, electricity tariffs are actually equivalent to those applied on continental metropolitan France, whereas generation costs are much higher. The resulting extra charges are financed by all the consumers, via a compensation fund.

In order to improve their assessment of these costs, the CRE’s services are to launch an international comparative study on electricity generation costs in Corsica, French overseas Departments and foreign insular regions with similar characteristics. The objective of this study is to identity and understand the possible differences between French and foreign producers in order to detect potential improvement sources for French insular producers.
Description of the Actual Services Provided Task n°1 :
Elaborate a benchmarking method most suitable for comparative analysis on power production cost; and select countries and foreign zones to be visited .
The countries or foreign zones non-interconnected should be, from one side, close in terms of economy and electric, to the Corsica and DOM, and from other side, likely to reveal the best practices in electricity production in non-interconnected conditions.

Task 2 :
Comparative analysis of the power production costs in Corsica, DOM and in other selected non-interconnected zones. The objective of this analysis is to show the best practices in terms of electricity production; identify the nature and evaluate the different constraints (technical, economical, social and environmental) that these utilities have to supported; compare the efficiency of EDF in Corsica and in DOM, in terms of production cost, to those in foreign zones of very similar conditions.