Paris and Brussels reached an “agreement in principle” with the end of the resolution of the litigation with the European Hydroelectricity Commission in France, which prevented investments in the sector, Matignon announced on Thursday, August 28. This agreement in principle “is excellent news,” said Prime Minister François Bayrou, in a statement.
Its implementation will be carried out through a bill that will soon be presented on the initiative of the deputies, he said. Brussels had reproached France for years in competition with the actors for the exploitation of dams and the dominant position of EDF.
Lack of investments
Today, hydroelectric facilities in France are exploited mainly under the concession regime: the works belong to the State that entrusts its exploitation to a concessionaire for a period defined by contract. The other regime, that of authorization, refers to facilities of less than 4.5 MW. The operators are usually also owners and the duration of authorizations is limited to 75 years by law.
However, according to a parliamentary report, the sector in France undergoes a lack of investments linked to the concession regime at the origin of the litigation with Brussels. In the absence of visibility in the future of concessions, operators cannot make investments not provided for in their specifications, nor those necessary for adequate operation and renewal of the works, the deputies underlined the deputies Marie-Noëlle Battistel (PS) and Philippe Bolo (Modem), authors of this report published in the spring.
EDF will have to give a great gift
Hydroelectricity is the second source of electricity production behind nuclear energy and the first source of renewable electricity in France and plays an important role in the balance of the electrical system. The selected scheme is available in three components, including the transition from a concession regime to an authorization regime “in terms that must still be specified,” says Matignon.
The second part is related to the possibility of maintaining the operators in place, “essential to guarantee the continuity of the exploitation of the works regarding the security problems”, water management, maintenance of local skills and jobs and return of value to the territories, add the services of the head of government.
In exchange for this maintenance of historical players, and in particular EDF that manages 80% of the French hydraulic park, France has accepted a commitment. The agreement in principle establishes the provision of EDF of six gigawatts of hydroelectric capacity to third parties, which would then sell them “for the final benefit of consumers.” They will be sold under the control of the Energy Regulation Commission (CRE) and through competitive auctions.
Source: BFM TV
