Rising energy prices make renewables profitable for public finances

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Due to rising energy prices, charges related to support for renewable energies will be negative for the first time in 2023, according to the CRE.

The global rebound in energy prices is such that, for the first time, the rates of public services to be compensated with renewable energy operators will be negative in 2023, which means income for the State, the energy police said on Monday. French.

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“In particular, wholesale electricity prices have become on average higher than the rates guaranteed by the State in the support contracts for electrical renewable energies. Thus, what in previous years constituted charges for the State budget represents for the first time a finance recipe,” indicates the CRE.

An estimated collection of 8,600 million for the State budget

The State pays the operators when the market price is lower than the guaranteed price and, conversely, the operators must return income to the State when the market price exceeds the guaranteed price. The CRE values ​​the amount of the charges to be compensated by the State to the operators for 2023 at “-11,100 million euros, 18,700 million euros less than the valuation made last year for 2022, which amounted to 7,600 million.” For these two years, the forecast of income linked to electrical renewable energies would amount to “8,600 million cumulative euros for the State budgets”.

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A recipe to which the onshore wind sector contributes the most, “for a value of 7,600 million euros”, continuing the photovoltaic sector “with a marginal weight in the costs of the public service for a value of 900 million euros” in the accumulated. For this sector, “the weight of the historical contracts”, concluded at their launch “at high prices, has not yet been offset by new contracts that contribute positively to public finances”, adds the CRE. Finally, the hydraulic sector makes a positive contribution, reaching 800 million euros accumulated for 2022 and 2023.

Author: LP with AFP
Source: BFM TV

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