Rising energy prices make renewables profitable for public finances

"The costs related to support for renewable energies in mainland metropolitan France are down due to the exceptionally high level of wholesale electricity and gas prices", indicates the Energy Regulatory Commission (CRE) in a press release. released on Monday.

"In particular, wholesale electricity prices have become on average higher than the tariffs guaranteed by the State in support contracts for electric renewable energies. Thus, what in previous years constituted charges for the budget of the State represents for the first time a recipe for public finances", indicates the CRE.

The State pays the operators when the market price is lower than the guaranteed price, and conversely, the operators must return revenue to the State when the market price exceeds the guaranteed price.

CRE assesses the amount of charges to be compensated by the State towards operators for 2023 at "-11,1 billion euros, down by 18,7 billion euros compared to the assessment carried out last year. last for 2022, which amounted to 7,6 billion".

For these two years, the forecast revenue linked to renewable electric energies would amount to "8,6 billion euros cumulatively for the state budget".

A recipe to which the onshore wind sector mainly contributes, "to the tune of 7,6 billion euros", the photovoltaic sector continuing "to weigh marginally on public service costs to the tune of 0,9 billion euros" in accumulated.

For this sector, "the weight of historic contracts", concluded at its launch "at high prices, is not yet offset by new contracts which contribute positively to public finances", adds CRE.

Finally, the hydraulic sector makes a positive contribution, amounting to 0,8 billion euros cumulatively for 2022 and 2023.