The European Commission (EC) has approved a €2.9 billion (US$3.2 billion) French aid scheme supporting investment in green industries.
In line with the Green Deal Industrial Plan, the aid will take the form of a tax credit and is aimed towards companies that plan projects to invest in the production of solar panels and other renewables such as batteries, as well as key components for producing the equipment and critical materials required for their production.
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According to the EC, France’s scheme was in line with the conditions set out in the Temporary Crisis and Transition Framework (TCTF) based on three points: it will bolster the production of strategic equipment for the transition to a net zero economy, the amount per beneficiary will not exceed the limits set in the TCTF – up to €2.25 million – and the aid will be granted until 31 December 2025, less than two years from now.
France saw its solar upstream activity increase last year with several companies aiming to set up module assembly plants in the country, including startups Heliup, which secured investment for a 100MW PERC lightweight module assembly line; Holosolis, which is founded by innovation group EIT InnoEnergy and plans to build a 5GW solar module assembly plant in France; and Carbon, with plans to build a 5GW/3.5GW cell and module assembly plant in the south of the country.
Margrethe Vestager, executive vice-president in charge of competition policy at the EC, said: “Thanks to the opportunities opened up by the Temporary Crisis and Transition Framework, member states may support investment in key sectors for the transition to a net zero economy. The French tax credit scheme, which is targeted at batteries, solar panels, wind turbines and heat pumps, contributes to the achievement of Europe’s ambitious climate goals.”
France’s aid scheme follows the approval of similar schemes – either for renewables or manufacturing – in Austria, Belgium, Germany, Hungary, Italy, Slovakia and Spain, worth in total €9.1 billion, while others are in the pipeline, added Vestager.
European countries are not only moving forward with implementing aid schemes to help build a domestic solar manufacturing industry, as they have also updated their renewable targets as per the EC requirements to submit a new version of their national energy and climate plans (NECPs). France’s updated target for 2030 aims to have 60GW of solar PV capacity installed, adding only 20GW to the previous NECP submitted in 2019.
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