Wind, solar tariffs validity dents France's attractiveness - Ernst & Young

Sep 7, 2012 - Ongoing investigations into the validity of some solar and wind power tariffs jeopardised the attractiveness of France’s renewable energy subsidy scheme, US audit and consultancy company Ernst & Young said in the August 2012 issue of its green energy indices.

France ranked sixth in the "all renewable" index. The sixth position was due to the fall of Italy in the rankings.

France kept its seventh place in the wind index and dropped a place to ninth in the solar index.

The validity of France’s feed-in tariffs (FITs) adopted in 2008 have been challenged before the country’s Supreme Court, on the grounds that the tariffs qualify as state aid and should have been presented to the European Commission as such.

The challenge has triggered an alarm across the wind power sector that any qualification by the Supreme Court may be used as precedent to challenge the validity of all renewable FITs that are financed via a special contribution tax paid by consumers.

The solar sector also suffered from legal controversies during the second quarter of the year. The Supreme Court has declared null and void some of the provisions in FITs orders approved in January and March 2010 relating to the use of buildings for solar power installations. Although the court’s ruling has no effect on existing power purchase agreements (PPAs), it raises concern over the legality of another FIT order issued on March 4, 2011.

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