The European Commission (EC) said Tuesday that it has approved France’s EUR-30.5-billion (USD 36.0bn) state aid scheme aimed at supporting power production from renewable energy sources.
The EC found the proposed support scheme to be in line with EU state aid rules and the European Green Deal objectives, and would not unduly distort competition.
“[T]he aid is proportionate and limited to the minimum necessary, as the level of aid will be set through competitive tenders”, the EU executive said.
The new scheme will benefit operators of onshore solar, onshore wind and hydroelectric power plants, and will be paid out as a premium on top of the electricity market price for a maximum period of 20 years after the plant is connected to the grid.
The EUR-30.5-billion budget to prop the measure is provisional, the EC said.
The support will be awarded through tenders for 34 GW of new renewables capacity to be held between 2021 and 2026. These tenders will target ground-mounted solar, solar on buildings, onshore wind, hydroelectric installations, innovative solar, self-consumption and technology-neutral projects.
“The selection of the beneficiaries through a competitive bidding process will ensure the best value for taxpayers' money while maintaining competition in the French energy market,” European Commission Executive Vice President Margrethe Vestager said in a statement.
(EUR 1.0 = USD 1.181)
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