French region announces financial aid for solar PPAs

France’s largest administrative region, Nouvelle-Aquitaine, has launched a call for new solar projects. It aims to promote access to power purchase agreements (PPA) for companies and encourage the emergence of new installations.

From pv magazine France

France’s Nouvelle-Aquitaine region has announced aid to support the growth of solar PPAs. The recently opened call for projects aims to promote affordable local energy supplies to the region’s industrial companies, particularly in the form of new solar plants.

Companies will be eligible for two types of aid: a subsidy for technical and legal feasibility studies (to a maximum of 70% of costs), or funding assistance in the form of a loan or guarantee as part of the support provided by the European Regional Development Fund (ERDF) on its 2021-27 plan.

In the latter scenario, projects may also benefit from an ERDF subsidy “depending on the size of the beneficiary company and the cost of [electricity per] MWh … The amount of the subsidy paid to the investor of the solar power plant must be fully passed on to the industrial company via a discount on the price of electricity supplied.”

In all cases, subsidies will be paid directly to the solar project owner. In addition, the awarded companies will be supported in choosing the type and tariff of the PPA.

The call for projects is open until Dec. 31, 2023, to companies whose electricity consumption at the production site or sites located in Nouvelle-Aquitaine is greater than 5 GWh/year. They can apply alone or in groups, or as part of a multi-buyer PPA.

“Large groups may be supported, but only in the context of a collective green corporate PPA with small businesses in Nouvelle-Aquitaine,” the regional government said in a statement.

This post appeared first on PV Magazine.

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