Changes announced in the Renewable Energy sector in France: measures to support Renewable Energy projects and lifting of the cap on repayments to EDF

Written By

olivier fazio module
Olivier Fazio

Counsel
France

I'm a Counsel in the Energy group based in Paris, where I work on complex public and environmental issues related to the energy sector.

sibylle weiler module
Sibylle Weiler

Partner
France

As an experienced renewable energy and financing specialist I advise companies, investors and financing institutions on the successful realisation of their projects with a particular knowledge of the French and German market.

The French Minister for the Energy Transition announced on 28 July that measures will be published in the coming days to support new Renewable Energy projects and thus boost the development of renewable energies.

These are in particular:

  • the possibility for fast-tracked projects to sell their electricity at market prices for 18 months before the contracts for difference come into force. This is intended to offset the additional costs caused in particular by the rise in commodity prices;
  • the planned reduction of tariffs for photovoltaic projects on buildings will not be implemented;
  • the possibility for project developers to increase the output of Renewable energy projects before commissioning by up to 40% from the previous maximum of 10%.

In return for these positive measures, the French government has inserted a draft Article 13 in the draft 2022 Financial Correction Act, which provides for the removal of the cap on repayments to EDF for existing additional remuneration contracts if the market price is higher than the reference tariff. The contracts previously provided that the operator owed repayments only in the amount of all subsidies received since the beginning of the contract. Now, for energy generated between 1 January 2022 and 31 December 2022, the electricity producer is to pay back to EDF the entire amount exceeding the tariff originally set.

In view of the energy crisis, special attention is currently being paid to Renewable Energy. A bill to accelerate the energy transition is to be presented as early as September.

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