European Commission Approves French RE Scheme

• The European Commission has approved a scheme of the French government that will allocate €200 million ($229 million) to support renewable energy installations in the country for self-consumption of power
• These installations should be in the range of 100 kW to 500 kW, and will be selected on the basis of competitive auctions
• All renewable energy technologies are eligible to participate in the tenders to be launched
• Winning projects will receive support in the form of a premium on top of the market price for a period of 10 years

The European Commission has approved a €200 million ($229 million) scheme of the French government to support renewable energy installations aiming for an aggregate 490 MW for self-consumption in France till 2020. It will encourage companies and individuals to produce renewable energy for self-consumption, said the EC, specifically for instances where only a limited part of the electricity they produce is sold to the grid.

All these installations should be in the range of 100 kW to 500 kW. To allocate financial support, competitive tenders will be launched through which beneficiaries will be selected. Under this tender, all renewable energy technologies can participate.

According to the EC, winning projects will receive support in the form of a premium on top of the market price for a period of 10 years. The budget is indicative and will be financed from the French State budget.

It believes the scheme will minimize any 'distortion of competition caused by the state support', along with encouraging installations of renewable energy technologies for self-consumption, while at the same time it will help France meet its climate targets. The country aims to achieve a 23% share of renewables in its final energy mix by 2020

The EC assessed the scheme under its 2014 Guidelines on State Aid for Environmental Protection and Energy.

"This scheme will stimulate competition between renewable energy sources for self-suppliers and will further increase the share of renewables in France's energy mix. The technology-neutral tenders will contribute to France's transition to low carbon and environmentally sustainable energy supply, in line with the EU environmental objectives and our state aid rules," said EC Commissioner for Competition Margrethe Vestager.

In May 2017, the EC had approved the French government's schemes for wind, solar and sewage gas, under which solar installations below 100 kW were eligible for FiTs for a period of 20 years. Out of the total budget approved, the solar scheme had a provisional annual budget of €190 million ($207 million) (see EU Approves French RE Schemes).