renewable energies, jackpot for the state

The onshore wind sector is, by far, the one that contributes the most money to the State budget, with revenues of 21,700 million euros in 2022 and 2023.

A strong argument in favor of renewable energy. The sectors must contribute no less than 30.9 billion euros to the State in 2022 and 2023, under the effect of the rebound in wholesale energy prices, the Energy Regulatory Commission (CRE) estimated on Tuesday. That is more than three times more than the previous estimate from the energy police (8.6 billion euros).

Wholesale electricity prices have become, on average, higher than the rates guaranteed by the State in renewable energy support contracts», specifies the CRE to explain this surplus of income for the State budget. The principle of these contracts is simple. Renewable energy producers sell their kilowatt hours on the wholesale market. When the market price is lower than the rate guaranteed by the State, the State pays the difference. On the contrary, when the market price is higher than the guaranteed price, the producer reimburses the State for the difference. This has been going on since the start of the increase in electricity prices in September 2021.

SEE ALSO – Bill to speed up renewable energies: “The State is trying to force the pace”, by Angélique Négroni

Assistance in financing the tariff shield

Specifically, it is the onshore wind sector that contributes the most to these additional revenues, amounting to 21,700 million euros. Far ahead of the photovoltaic sector (3,500 million) and the hydraulic sector (1,700 million). The injected biomethane sector contributes some 900 million euros.

CRE highlights that this jackpot “will contribute to finance, at least in part, the exceptional expenses related to the consumer protection measures announced by the government“, in particular, the extension in 2023 of the rate shield for households and VSE, and support measures for companies and communities.

If the sum is substantial, CRE points out that it could have been much higher. Warns in effect aboutthe phenomenon of early termination of support contracts by some renewable energy producers“. In fact, the explosion of prices in the markets encourages certain producers to break their contracts with the State to sell their energy directly on the market. “This represents a considerable loss for the State budget, of the order of 6 to 7 billion euros accumulated for the years 2022 and 2023.“, evaluates the CRE.

SEE ALSO – COP27: “We will not sacrifice our climate commitments under the Russian energy threat”, assures Emmanuel Macron

Leave a Reply

Your email address will not be published. Required fields are marked *