On Monday 11 December, the European Commission approved a French measure aiming to increase hydroelectric production on its territory.
Within this framework, two calls for tender will be launched for the construction and operation of hydroelectricity power stations, corresponding to a total capacity of 105 MW. The French public authorities will then award public aid to the beneficiaries, in the form of a premium on top of market electricity prices. This will mean that the beneficiaries are required to react to market fluctuations, which will automatically reduce competition distortions caused by the measure.
The Commission believes the scheme would allow France to increase the share of electricity produced from renewable sources and reduce its CO2 emissions. When assessed in light of the 2014 guidelines on state of aid for environmental protection and energy, the measure was found to comply with EU state aid rules. (Original version in French by Lucas Tripoteau)