France proposes to cut FiTs and push tenders

September 18, 2012
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French Ministry of Ecology, Sustainable Development and Energy and the Ministry of Productive Recovery has released a report detailing long-term operational recommendations and proposals for structural reforms to the renewables industry. The government will make a decision based on this report at a later unspecified date.

The report suggests that renewables – in particular, solar PV and wind energy – have an intermittent nature, thereby negating the efficacy of a feed-in tariff. However, the report states implicitly that this should not deter the government from generating electricity from PV and wind, but instead find a new method of financial investment – namely by holding annual tenders.

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The report suggests gradually reducing the FiT over five years. It also encourages France to cooperate with Germany on research and development issues.

The Minister of ecology, sustainable development and energy, Delphine Batho, also announced the results of two tenders for solar plants in July, expected to generate a cumulative investment of nearly €1 billion within the next two years and provide enough energy to meet the demands of 150,000 homes.
 

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