On Monday 20 January the European Commission authorised France to participate in the setting up of a guarantee fund for deep geothermal operations.
Thus, the Commission has authorised a contribution from the French Environment and Energy Management Agency (ADEME) amounting to €16.1 million in the form of repayable advances to set up the GEODEEP guarantee fund.
GEODEEP, which will operate for up to 10 years, will provide guarantees for projects in the deep geothermal sector (Enhanced Geothermal System). The purpose of these guarantees will be to cover the risk associated with the high degree of uncertainty regarding the geothermal resource exploitable in deep drilling, which the market is unable to guarantee under conditions acceptable to investors at present. The Commission assessed the measure in particular on the basis of its 2014 guidelines on State Aid for environmental protection and energy.
The Commission noted that the aid granted by ADEME will contribute to French and European objectives in terms of energy efficiency and the production of energy from renewable sources, in line with the EU's environmental objectives. Furthermore, "possible distortions of competition" caused by State support will be minimised, as the aid will be paid in the form of repayable advances, the Commission concludes. (Original version in French by Lionel Changeur)