A French government plan to save hundreds of millions of euros a year by reneging on early solar power contracts it says generate “excessive” profits has caused outrage among investors, who say the move could cripple their businesses, undermine the credibility of the state’s promises and threaten future renewable energy projects.
France is the latest European country to find that the rapid development of solar technology and the collapse in the price of photovoltaic cells has left its government liable for payments over decades far in excess of the cost of new contracts. Spain, Italy and the Czech Republic have faced similar legal tussles in the past.
“Who’s going to have confidence in the state for an offtake agreement on hydrogen production?” asked Xavier Barbaro, founder of renewable energy company Neoen and one of the signatories of a business petition…