ANNOUNCEMENT 27 Jul 2021

In July 2021, the European Commission approved a French scheme to support renewable electricity generation until 2026. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

European Commission. Press release. “State aid: Commission approves €30.5 billion French scheme to support production of electricity from renewable energy sources”. 27/07/2021. Available at: https://ec.europa.eu/commission/presscorner/detail/en/IP_21_3922

SA.50272 ( 2021/N ) France - RES tenders 2021-2026. Available at: https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_50272

European Commission's Decision. "Objet: Aide d’État SA.50272 (2021/N) – France. Appels d'offres pour les renouvelables 2021-2026". 27/07/2021. Available at: https://ec.europa.eu/competition/state_aid/cases1/202146/SA_50272_509FC07C-0000-CFA6-A4E7-F412831B911A_235_1.pdf

EUR-Lex. Official Journal of the European Union. 05/11/2021. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.C_.2021.450.01.0001.01.ENG&toc=OJ%3AC%3A2021%3A450%3ATOC

Inception date: 27 Jul 2021 | Removal date: 24 Dec 2046

Price stabilisation

On 27 July 2021, the European Commission approved a EUR 30.5 billion (approx. USD 36.1 billion) French scheme to support renewable electricity production. The scheme provides support in the form of a premium on top of the electricity market price. Beneficiaries will be selected through competitive tenders and granted long-term contracts, of up to 20 years. As the application deadline is 31 December 2026, the scheme will be in force until 31 December 2046. 

In particular, the scheme will support electricity producers from onshore solar, onshore wind and hydroelectric installations. There will be seven types of tenders for generated a total of 34 GW.

In this context, the Commission's Decision highlights: "The electricity market has been liberalized and electricity producers are engaged in exchanges between Member States. Electricity produced by installations on buildings using solar energy is sold in the market where it competes with electricity from different sources (such as electricity produced from other renewable energy sources, conventional and nuclear sources) and different Member States. Any advantage granted to a given mode of electricity production is therefore likely to distort competition and affect trade between Member States" (own translation).

Regardless, the Commission approved the state aid without raising objections, concluding that the scheme “is compatible with the internal market pursuant to Article 107(3)(c) of the Treaty on the Functioning of the European Union".

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