la sortie d'obligation d'achat

English translation: opt-out of the power purchase obligation

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
French term or phrase:la sortie d\'obligation d\'achat
English translation:opt-out of the power purchase obligation
Entered by: Leigh Ann Benlian

07:38 Sep 13, 2022
French to English translations [PRO]
Tech/Engineering - Energy / Power Generation
French term or phrase: la sortie d'obligation d'achat
Hello to all,
This is an example, not relating to the one I am working on due to sensitive info.
But the subject remains renewable energy.
Les sorties d’obligation d’achat n’ont jamais été aussi attrayantes
Quelle stratégie adopter lorsque son actif sort de l’obligation d’achat ? Cette question, de plus en plus de propriétaires d’énergies renouvelables se la posent, notamment dans l’éolien sous contrat pour 15 ans, contre 20 ans pour le photovoltaïque.

Any help would be appreciated, I just can't wrap my head around the "la sortie" part
Leigh Ann Benlian
France
Local time: 12:30
opt-out of the power purchase obligation
Explanation:
_ understood: 'from Renewable Sources' - making the answer 'far too long'.

Opt-out for sortie as in Julie B's discussion entry and as in my (widely ignored) 'derogation' favourite.

Contrast a drag- vs. tag-along opt-out in a company buy-out scenario.

Selected response from:

Adrian MM.
Austria
Grading comment
Thank you Adrian, your link was a great reference and helped me understand the PPA.
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +1release from buy-back commitment
Tony M
4 +1ending of guaranteed sales (/ending of compulsory buying)
Daryo
4exemption from the purchase obligation
Kartik Isaac
4withdrawal from the Renewables Obligation scheme
Bourth
3 +1opt-out of the power purchase obligation
Adrian MM.
4phase out of/exit from the mandatory purchase scheme OR end of the mandatory purchase contracts
FPC
Summary of reference entries provided
Obligation d'achat
Wolf Draeger

Discussion entries: 12





  

Answers


19 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
exemption from the purchase obligation


Explanation:
This would be my best guess.

https://www.eqmagpro.com/petition-for-granting-exemption-fro...
https://mercomindia.com/fossil-fuel-renewable-purchase-oblig...
https://mahaurja.com/meda/data/rporec/FAQ RPO.pdf


Kartik Isaac
Switzerland
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 4

Peer comments on this answer (and responses from the answerer)
agree  FPC: As for Daryo's comment he's correct, but in a way you could consider it it an exemption as it's phased in as contracts expire. https://www.centrales-next.fr/glossaire-energies-renouvelabl...
11 hrs

disagree  Daryo: an "exemption" is some kind of special case - the ST is about regular contracts simply ending after 15/20 years.
13 hrs
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1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5
withdrawal from the Renewables Obligation scheme


Explanation:
You'll find plenty about RO on the web.

Bourth
France
Local time: 12:30
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 8
Notes to answerer
Asker: I am familiar with the RO, but this doesn't seem to be the same thing. In the RO, each supplier has an obligation to use a percentage of renewable energy. As @Tony M mentioned, in this situation, it is about buy-back (usually by EDF). But the more I dig, the more unsure I become!

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5 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
opt-out of the power purchase obligation


Explanation:
_ understood: 'from Renewable Sources' - making the answer 'far too long'.

Opt-out for sortie as in Julie B's discussion entry and as in my (widely ignored) 'derogation' favourite.

Contrast a drag- vs. tag-along opt-out in a company buy-out scenario.



Example sentence(s):
  • tarifs d'obligation d'achat - imposed/obligatory power purchase price, Bourth
  • A drag-along right is a provision or clause in an agreement that enables a majority shareholder to force a minority shareholder to join in the sale of a company.

    Reference: http://www.proz.com/kudoz/french-to-english/energy-power-gen...
    Reference: http://www.iea.org/policies/4025-obligation-for-power-purcha...
Adrian MM.
Austria
Native speaker of: Native in EnglishEnglish
PRO pts in category: 8
Grading comment
Thank you Adrian, your link was a great reference and helped me understand the PPA.

Peer comments on this answer (and responses from the answerer)
neutral  SafeTex: "Owners of renewable energy" ask themselves this question according to the text. So I find it hard to understand how they would have entered a POWER purchase obligation, as they are trying to sell energy, not purchase it.
3 hrs
  -> Good point, Safetex. Cut to FPC's comment and the gen. consensus: 'it's a producer speaking here..., that is buyers are not mandated (required) to buy any more' cf. a C(iv) seller's binding 'call' option exercised to force a buyer to buy land & buildings,

agree  FPC
6 hrs
  -> Grazie, merci and thanks, FPC.
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1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
release from buy-back commitment


Explanation:
For some time, alternative power generation has been encouraged by lucrative buy-back of the excess power by the generating authorities at inflated prices.
This is now proving a problem for them, which is why they are offering people incentives to escape from these commitments.

--------------------------------------------------
Note added at 12 hrs (2022-09-13 20:21:02 GMT)
--------------------------------------------------

Buy-back rates for grid-connected photovoltaic power systems

https://iea-pvps.org › uploads › 2020/01 › rep1_02

This report summarises the different buy-back rate models implemented in the participating IEA member countries.

About the New Buyback Program for Photovoltaic Generation ...

https://www.meti.go.jp › renewable › ref2002_02

Buyback prices in and after the second year are to be reduced by about a half in five years, in line with the progress in introduction of panels and their price ...

Tony M
France
Local time: 12:30
Works in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 338

Peer comments on this answer (and responses from the answerer)
neutral  FPC: Ok I see. Only, really I think buy back refers to users that also receive power from the grid. In this case It's producers that only supply. So it's alwyas a one-way sale.
10 hrs
  -> In fact, this is one of the dedicated terms used in EN. See refs. added above...

agree  Wolf Draeger: In the end "release" may be the best word for sortie, but I think it's release from the feed-in tariff scheme or a PPA rather than a buyback commitment (EDF must buy all of a renewable generator's power, not just the surplus).
11 hrs

neutral  Daryo: yes, that is correct from the view point of the buyers, but the ST is from the viewpoint of the sellers/producers of renewable energy.
12 hrs
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14 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
ending of guaranteed sales (/ending of compulsory buying)


Explanation:

"we are trying to benefit from this as much as possible, organizing 'la sortie d'obligation d'achat' for our oldest fleets."

Les sorties d’obligation d’achat n’ont jamais été aussi attrayantes
Quelle stratégie adopter lorsque son actif sort de l’obligation d’achat ? Cette question, de plus en plus de propriétaires d’énergies renouvelables se la posent, notamment dans l’éolien sous contrat pour 15 ans, contre 20 ans pour le photovoltaïque.

Context: this written from the viewpoint OF THE SELLER - supplier of "renewable energy" which buyers had the obligation to keep buying for 15 / 20 years.

IOW it's buyers who have the right to "exit" from their obligation to buy whichever quantities of renewable energy are produced and offered to them.

From the viewpoint of "the assets owners" (="son actif") i.e. producers/sellers of renewable energy having to find some use for wind power generator that are nearing 15 years of service, this in effect the "ending of guaranteed sales".

"we are trying to benefit from this as much as possible, organizing 'la sortie d'obligation d'achat' for our oldest fleets."
=>
ours oldest fleet of wind turbines is/will be soon over 15 years old, and there will no longer be any "guaranteed sales" for their output, as our buyers have the right to "exit" (/terminate) their obligation to buy whatever energy we produce.

If it's a contractual obligation that can be terminated according to general law, it's hardly a derogation or an exemption.

Daryo
United Kingdom
Local time: 11:30
Native speaker of: Native in SerbianSerbian, Native in FrenchFrench
PRO pts in category: 23

Peer comments on this answer (and responses from the answerer)
neutral  Wolf Draeger: The "market premium" replacing the feed-in tarif = a higher subsidy = producers win and EDF passes the cost to ratepayers as before + still has to buy all that renewable power. // Feed-in tariffs were 15 years for wind and 20 years for solar.
10 mins
  -> Being aware of the general context is fine, but you have still to take into account the specifics of the ST: why would "15 years" be mentioned at all if the "obligation to buy" was for ever?

agree  FPC: As I said in my comment it's a producer speaking here, but the thing is you can see the new attitude towards trenewables from both sides, that is buyers are not mandated to buy anymore
9 hrs
  -> Thanks!
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1 day 10 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
phase out of/exit from the mandatory purchase scheme OR end of the mandatory purchase contracts


Explanation:
It's just another suggestion on how to phrase it, and I don't need add anything to what I already said in the comments.

FPC
Native speaker of: Native in ItalianItalian
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Reference comments


13 hrs peer agreement (net): +1
Reference: Obligation d'achat

Reference information:
As Leigh Ann says, finding a single term for sortie is the tricky bit; I think the idea is 'no longer covered by' or 'no longer part of' or 'no longer subject to'. But understanding what obligations d'achat are might be a first step.

From the last link provided by Julie in the discussion thread:
https://uk.practicallaw.thomsonreuters.com/7-629-7567?transi...

"Through various incentives, the French State and the EU have encouraged the development of renewable energies:
- Market premium. Power is sold by the generator on the market and a premium is paid to the producers by Electricité de France to address the potential difference between the market price and the target price.
- Feed-in tariff. All the electricity injected is bought by a purchaser, usually Electricité de France, who is compelled to do so due to a public service obligation, at a price over the market price."

From the CMS Law website:
https://cms.law/en/int/expert-guides/cms-expert-guide-to-ren...
https://cms.law/en/int/expert-guides/cms-expert-guide-to-ele...

"Like many other European countries, France decided at the beginning of the century to support clean electricity generation through a “power purchase obligation” support scheme. The generators benefited from a purchase obligation, at feed-in tariffs laid down by ministerial orders while the State organised public tenders when commercial initiatives were insufficient to reach the national objectives for a specific part of the territory (including overseas territories) or for a particular technology (eg offshore wind farms). [...] Purchasing agents designated by the law (EDF or, in some cases, local distribution companies) were compelled to enter into a regulated power purchase agreement (PPA) to buy the entire production of each renewable producer willing to do so. Every renewable producer agreed to this arrangement, as the feed-in tariff has remained above the market price. [...] Producers must now sell their energy on the market, and they receive, through an ex-post mechanism, an additional variable remuneration (complément de rémunération) from EDF (the local distribution companies are no longer part of the mechanism) in the form of a monthly premium. [...] As a result of this reform, the system of premium fees is now the main support mechanism for renewable energy."

From the ICLG website:
https://iclg.com/practice-areas/renewable-energy-laws-and-re...

"The French legal framework consists mainly in Articles L 314-1 to L 314-27 of the Energy Code. The sale of renewable energy was initially based on the power purchase obligation (PPA) mechanism with feed-in-tariff (FIT), by which the eligible producer concluded a PPA with EDF (or an ELD).

Since the LTECV law, the Energy Code sets forth a market-based premium mechanism whereby a CfD is signed with EDF, which includes a market-based premium that gradually replaced the FIT mechanism.

The premium mechanism is an ex post calculation equal to the difference between the target tariffs per kWh, and a reference tariff to which a management premium is added. The reference tariff is published by the CRE on a monthly basis.

Installations benefiting from an FIT PPA contract at the time of the entry into force of the premium mechanism will remain subject to the FIT PPA."

For more background on renewable electricity generation in France, see:
https://fee.asso.fr/comprendre-leolien/la-reglementation-en-...
https://ekwateur.fr/autoconsommation-guide/obligation-achat-...
https://www.centrales-next.fr/glossaire-energies-renouvelabl...






--------------------------------------------------
Note added at 13 hrs (2022-09-13 21:27:18 GMT)
--------------------------------------------------

Well, waddaya know:
https://www.centrales-next.fr/glossaire-energies-renouvelabl...

« Le complément de rémunération est le mode de rémunération qui accompagne le mécanisme de vente directe d’électricité à la bourse. Le complément de rémunération s’ajoute aux revenus boursiers, pour dans un premier temps atteindre le tarif d’achat de référence fixe et dans un second temps le dépasser pour compenser les frais administratifs liés à la vente de l’électricité sur les marchés. Il est constitué respectivement de la prime à l'énergie et de la prime de gestion. [...] Pour faire simple : quand le prix de vente de la production électrique et des garanties de capacité sont sécurisés, l’exploitant gagne l’équivalent de son ancien tarif d’obligation d’achat avec EDF plus la prime de gestion. Les revenus sont augmentés. »

But wait, there's more:
https://www.centrales-next.fr/glossaire-energies-renouvelabl...

« La prime à l’énergie est l’une des deux composantes du complément de rémunération ; mécanisme qui rémunère les producteurs d’énergie renouvelable ayant opté pour la vente directe d’électricité à la bourse. [...] Pour un producteur, cette prime est synonyme de revenus au moins égaux à ceux qu’il pouvait toucher grâce à son contrat d’obligation d’achat avec EDF, comme montré ci-dessous. C’est ensuite avec la prime de gestion que le producteur touchera un réel bonus. Les deux primes en questions sont versées par EDF, tout comme l’est le tarif d’obligation d’achat. »

It gets better:
https://www.centrales-next.fr/glossaire-energies-renouvelabl...

« La prime de gestion est perçue en complément du montant de la vente d’électricité à la bourse et de la prime à l’énergie. Son montant est fixe et peut varier filière par filière. De ce fait, elle est un véritable bonus. Grâce à elle, le propriétaire d’une installation d’énergie renouvelable (éolien, solaire, hydraulique ou biogaz), est assuré de gagner plus d’argent qu’avec un contrat d’obligation d’achat avec EDF. »

--------------------------------------------------
Note added at 1 day 1 hr (2022-09-14 09:10:06 GMT)
--------------------------------------------------

I missed that Julie also gave the ICLG link in her first discussion entry, so credit to her for that one too.


    Reference: http://www.orygeen.eu/docs-actus/glossaire/obligation-achat/
    Reference: http://gazelenergie.fr/blog/2022/03/02/agregateur-gazelenerg...
Wolf Draeger
South Africa
Native speaker of: English
Note to reference poster
Asker: Hi Wolf, Thank you for all of the research and insight! I am impressed, and actually learned a lot about how France is handling the implementation of renewable energy into the energy mix. Luckily for me, being no specialist in the matter, the rest of the file was a lot more general. But thank you so much for your time and efforts!


Peer comments on this reference comment (and responses from the reference poster)
agree  Daryo: yes, but there is also the bit about 15/20 years limit to all that ...
29 mins
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