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Echoes > 2013 > European justice rules that French feed-in tariff for windpower is a state aid

Judge at the European Court of Justice

Our quick translation:

European justice rules that French feed-in tariff
for windpower is a state aid

LUXEMBOURG - The price at which EDF buys wind power is similar to a state intervention, European justice ruled Thursday, bringing a serious blow to the price of wind power in France.

The requirement in France to purchase electricity generated by wind turbines at a higher-than-market price is a state intervention through state resources, said in substance the Court of Justice of the European Union (CJEU).

The Court had been asked by the French federation Vent de Colère and other opponents to wind farms. Vent de Colère had denounced the tariff established in 2008, arguing that it was a State aid which had not been notified formally to Brussels.

According to this 2008 feed in tariff, EDF is obliged to buy electricity produced by wind turbines in France at €80 per megawatt hour (MWh), a rate higher than market price. This additional cost borne by EDF is offset by the Contribution to Public Service of Electricity (CSPE), which is akin to a tax paid by electricity consumers.

The judgment of the Court could pave the way for a possible cancellation of the subsidized rates.

(© AFP / December 19, 2013 10:48)

Article in French: Romandie News - 19 décembre 2013


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