A number of attorneys simply spoke pv journal in France Talks about modifications to the French authorized framework for renewable power buy agreements (PPA).
From pv journal in France
The French authorities issued the Renewable Power Acceleration Invoice on March 10, with new provisions for the authorized framework for renewable power PPAs.
“These new guidelines, that are primarily listed in article 86, work in a double manner,” mentioned Céline Ciriani, a lawyer at Gossement Avocats. “On the one hand, within the power disaster, giant electrical energy shoppers should purchase electrical energy at steady costs. Alternatively, there’s a need on the a part of the federal government to cut back public help, as a result of discount of manufacturing prices and rising electrical energy costs.
The primary essential change pertains to the opportunity of electrical energy producers to acquire administrative authorizations to resell electrical energy to finish shoppers or grid operators from subsequent July.
“This authorization for resale goals to confirm the monetary capability of the provider and, within the case of a PPA, to keep away from failures within the electrical energy provide,” mentioned François Versini-Campinchi, a companion of the French regulation agency LPA-CGR avocats.
Nonetheless, for particular goal autos (SPV) managing a property, this consent request is usually a headache.
“Every producer should describe his portfolio of renewable power vegetation, in addition to the human, materials and monetary sources obtainable to him or that he has dedicated to immediately implement to make sure his exercise as a provider on the French market, ” mentioned Versini-Campinchi. “The shape additionally requires an outline of the actions it plans to outsource. That is fully disproportionate for an SPV with just one asset.
That is why the legislators permit “to nominate a 3rd occasion producer or provider, who already holds such authorization, in order that it assumes, by delegation, with regard to the ultimate shoppers, the obligations that obtainable to electrical energy suppliers,” mentioned Philippe Jacques, affiliate lawyer at LPA-CGR avocats. “As a result of complexity for an SPV to acquire this approval, it’s seemingly that it’s going to turn into the norm and that almost all producers will use it.”
Jacques mentioned it’s troublesome to not see this as a measure in favor of utilities and power suppliers, to permit them to keep up some management of the electrical energy market.
The introduction of this humility raises different questions. Will it’s legitimate for your complete length of the PPA, or will it have to be renewed, and even renegotiated, at common intervals? Do these companies lead to greater transaction prices? Are intra-group delegations attainable? “One factor is definite – it will increase constraints for producers,” mentioned Jacques.
Whereas native authorities used to have the ability to set up PPAs legally, in apply that is nearly unimaginable, as a result of restricted length of public power contracts, which often final two to 4 years. However any further, the regulation takes into consideration the wants of native authorities. In concrete phrases, which means native authorities now have the flexibility to terminate long-term PPAs. This alteration will make it simpler for renewable producers to acquire financing, because the length of the PPAs should be adjusted to the amortization intervals of the initiatives.
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