ANNOUNCED AS TEMPORARYYes
On 26 July 2019, the European Commission approved the granting of feed-in tariffs for the future electricity produced by the Saint-Brieuc wind farm for a period of twenty years from the start of production. Production is expected to commence from 1 January 2023. The feed-in tariffs represent the difference between the market price and the guaranteed purchase price of electricity. This subsidy is estimated to have a total value of EUR 4.696 billion (around USD 5.34 billion) i.e. approximately EUR 234.8 million per year.
The beneficiary of the feed-in tariffs is the joint venture company Ailes Marines SAS. The company is owned by Iberdrola holding a 70 equity stake and Avel Vor holding the remaining 30% stake. Avel Vor is in turn owned by RES and CAISSE DES DEPOTS Group respectively holding a 22.5 and 7.5% of the wind farm project through Avel Vor.
The Commission noted in its decision text that: "Electricity is highly traded, particularly between Member States, the notified measure may distort competition in the electricity market and affect trade between Member States. France is interconnected with the United Kingdom, Belgium, Germany, Italy and Spain. The measure is therefore likely to distort the electricity exchanges between France and the neighbouring Member States." (own translation)
The Commission, however, decided, following an investigation of the state aid: "not to raise objections to the notified State aid on the ground that it is compatible with the internal market pursuant to Article 107 (3) (c) TFEU" (own translation)
Additionally, the European Commission also approved feed-in tariffs to be granted to five other offshore wind farm projects in France, see related state acts.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
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