Government support for existing anaerobic digestion facilities
At the Biogaz Europe trade fair in Rennes, the French environment minister, Ségolène Royal, has announced an extension to the power purchase agreements at existing anaerobic digestion plants, from 15 to 20 years.
Developing the anaerobic digestion industry is a priority for the energy transition and long-term energy planning.
To support this development by consolidating the economic situation of pioneering facilities, Ségolène Royal raised the purchase tariff for power generated by such plants in an Order issued on 30 October 2015.
The Minister also submitted a draft Order to the French energy regulator (Commission de régulation de l’énergie - CRE), under which the term of power purchase agreements (PPA) relating to existing anaerobic digestion plants would be extended from 15 to 20 years. In its recommendation published on 8 July 2016, CRE considered it necessary to more precisely define the terms of the extension.
To take this recommendation into account, the benefit of the PPA for electricity generated by existing plants will be limited after the 15th year, as follows:
- Capped at 7,500 hours per year for plants generating up to 250 kWe
- Capped at 6,500 hours per year for plants generating from 250 to 500 kWe
- Capped at 5,500 hours per year for plants generating more than 500 kWe
Source: Press release published by the Ministry: Energy transition: Ségolène Royal increases support for existing anaerobic digestion plants
