• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 3 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 18 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 8 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 6 hours Did China cherry-pick the factors that affected the economic slow-down?
  • 2 hours Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 5 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 3 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 3 days Nord Stream - US/German consultations
  • 5 days An Indian Opinion on What is Going on in China
  • 409 days Class Act: Bet You've Never Seen A President Do This.
  • 3 days Australia sues Neoen for lack of power from its Tesla battery
  • 2 days Forecasts for Natural Gas
  • 5 days Storage of gas cylinders
Get Ready For The SPAC Frenzy In Clean Energy

Get Ready For The SPAC Frenzy In Clean Energy

Investors are increasingly piling into…

Are Saudi Arabia’s Green Energy Plans Realistic?

Are Saudi Arabia’s Green Energy Plans Realistic?

Saudi Arabia, the world’s largest…

Charlotte Dudley

Charlotte Dudley

Charlotte is a writer for Environmental Finance.Environmental Finance is the leading global publication covering the ever-increasing impact of environmental issues on the lending, insurance, investment…

More Info

Premium Content

France Shifts Away From Solar With $10 Billion Wind Power Tender

The French government’s plans to launch a €10 billion ($13.8 billion) tender for offshore wind developments signals a shift away from solar energy toward large-scale wind projects. However, questions remain over financing and profitability.

Régis Oreal, a finance partner with law firm Herbert Smith in Paris, says the scale of the wind tender and the recent roll-back of support for solar photovoltaic (PV) installations indicates the government is looking at large-scale wind farms rather than solar projects to meet its renewable targets.

The French solar market was taken by surprise in December when the government announced plans to impose a three-month moratorium on awarding feed-in tariffs for some new solar PV installations, in order to restrain industry growth.

While France’s solar and onshore wind industry centres predominantly around smaller scale projects, Oreal says the offshore tender – which aims to fund the construction of 600 turbines totalling 3GW of capacity off France’s Atlantic and English Channel coastlines – indicates a move toward large-scale renewable power generation.

“The feeling we get is that the government wants to replace the very fast developing solar industry,” he said, adding that the government may consider a few large-scale projects “easier to control” than a string of smaller solar and onshore wind installations.

Given the considerable value of the tender, Oreal said it will likely attract syndicates of sponsors, arranged through the major French banks. However, that financing will be a challenge, he added.

“It’s not that easy in the market at the moment, so this may raise questions,” he said.

France plays catch-up but profitability questioned

Lawyers at Cameron McKenna said France lags behind the rest of Europe on offshore wind development “and these ambitious plans will help France to catch up with European leaders such as Germany and the UK”.

Bidders submitting to the tender must propose a rate at which the electricity generated can be purchased by utility EDF. However Cameron McKenna says that some investors say purchase rates – currently fixed at  €130 per megawatt hour (MWh) for the first 10 years and between €30 and €130/MWh for the following decade – are “too low to ensure profitability”.

“The scale of this opportunity is bound to attract the heavy-weights of the European renewables market, as well as increasing the involvement of French industry in the sector. It will be important for these investors to ensure that they are armed with the necessary local knowledge to give their bids the best chance of success,” the law firm said.

Arnaud Bouillé, a UK-based director in consultancy Ernst & Young’s renewable energy group, welcomed news of the tender but expressed disappointment in the scale of the development.

He said France’s 3GW offshore wind ambition is “very much small fry”, particularly compared with larger-scale wind developments in countries such as the UK and Germany.

The tender was originally due to launch in September but the consultation process saw it pushed back to May. Project commissioning is scheduled from 2015.

France hopes to source 23% of its electricity from renewable sources by 2020.

By. Charlotte Dudley

Source: Environmental Finance


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News