Smart News : The decree on the “premium regime” for wind energy is published: the end of a cycle

The decree on the “premium regime” for wind energy is published: the end of a cycle

The publication of the decree of the 13 December 2016, in the French Official Journal of the 14 December, 2016 marks the end of a new episode in the evolution of the regulatory framework applicable to wind farms.

On the one hand, the decree confirms that producers can benefit from the mechanism of the feed-in tariff regime, pursuant to the decree of 17 June 2014. So, for the projects for which producers have lodged a complete application for PPA (DCCA) within the meaning of the decree of 17 June 2014 or a CODOA was granted prior to the 1st January 2016, producers may continue to benefit from this feed-in tariff regime (Article 14).

In case a DCCA was not filed or a CODOA was not granted before the 1 January 2016, producers may tip into the new regime implemented, in the case of wind energy, by this decree of the 13 December 2016. It remains for these producers to file complete applications for premium contracts (DCCR) before 31 December 2016.

On the other hand, indeed, the decree of 13 December 2016 marks the evolution of wind energy towards to the premium regime. Now, producers will no longer benefit from a feed-in tariff and a contract with the public purchaser but will have to sell their production on the market either directly or through an aggregator. An additional remuneration, the premium, will be paid, pursuant to a contract entered into with the public purchaser.

The decree of the 13 December 2016 is the first step of this evolution for wind energy towards this new regime. The premium contract will be concluded for a period of 15 years. In particular, the decree sets a basic tariff level (TDCC) of € 82 / MWh indexed as well as a management premium of 2,8 €/MWh , intended, in particular, to cover variable costs and fixed costs linked to access to the market and capacity market.

The next step is expected to take place at the beginning of 2017 with the adoption and publication of a new decree which will lay down the conditions for access by producers to the premium regime through the “open window” regime or after a Call for tender procedure as of 1st January 2017.