On Tuesday 27 July, the European Commission authorised a French aid scheme to support the production of renewable electricity.
The measure will help France meet its renewable energy targets without unduly distorting competition and will contribute to the EU’s 2050 climate neutrality target.
France has notified its intention to introduce a new support system for electricity from renewable energy sources for operators of solar, onshore wind and hydroelectric installations. Support for these operators through tenders is foreseen. In particular, the measure includes seven types of tenders for a total of 34 GW of new renewable energy capacity, to be organised between 2021 and 2026: - solar energy on the ground; - solar energy on buildings; - onshore wind energy; - hydroelectric installations; - innovative solar energy; - self-consumption; - technology-neutral.
The support takes the form of a premium on top of the electricity market price. The measure has a total estimated budget of around 30.5 billion euros. The support scheme is open until 2026 and aid can be paid for up to 20 years after the new renewable energy installation is connected to the grid.
The Commission considered that the aid was necessary to further develop renewable energy production in order to meet France’s environmental objectives. The aid also has an incentive effect, as the projects would not be possible without public support. Furthermore, the aid is proportionate and limited to the minimum necessary, as the level of aid will be fixed through tenders. Moreover, the Commission found that the positive effects of the measure, in particular on the environment, outweigh any negative effects in terms of distortion of competition. (Original version in French by Lionel Changeur)