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Press Release

Herausgeber: Sterr-Kölln & Partner mbB

France: 3 months of suspension of the purchase obligation of solar - electricity

Paris/Freiburg/Berlin - On December 9, 2010, the Ministry of Environment issued Decree no. 2010-1510 suspending the purchase obligation of electricity produced by installations using solar energy for a period of three months. During the period of suspension, those demands benefiting from regulated tariffs within the framework of the grid connection procedure for photovoltaic installations will not be handled. According to the government, these drastic measures are justified by the need to implement a new legal framework for the photovoltaic sector after joint consultation between all of the concerned actors (the government, actors in the field and, notably, the Commission for Energy Regulation). At the end of the three month period, a new tariff decree should be published. This suspension, and naturally the announced decrease of the feed in tariff, will essentially concern large sized ground installations that are actually in the development phase and that do not yet have available an offer for grid connection. In practice, the uncertainties connected to the tariff situation risk to seriously slow down development in the photovoltaic sector, states Oliver Fazio, a lawyer from the law firm of SK & Partner in Paris.

Notwithstanding the above, the Decree does not apply to the follwing installations: Installations producing solar energy with a power capacity less than or equal to 3 kW and those for which the project developer has accepted the technical and financial proposition for grid connection (proposition technique et financière (\"PTF\") to the grid operator (electricité reseau distribution France (\"ERDF\") before December 2, 2010 (date of the announcement of the moratorium by an official statement of the Prime Minister) and subject to the installation being put into service within the time frame provided by the Decree. WIth the exception of these two cases, at the issue of the period of suspension, the demands filed before the date of entry into force of the decree shall be the object of a new demand for grid connection. They shall benefit from a purchase tariff that shall be decided upon following the actual pending concertation. And, in the meantime, as Law no. 2010-1488 of December 7, 2010 concerning the new organisation of the electricity sector, has been published, asking for a new PTF equally implies an increase in grid fees for the operator. In fact, while the Decree of July 17, 2008 provided that the operator shall only bear up to 60% of the costs of grid connection , the NOME law provides that operators bear all of the costs related to connection of their installation to the grid.

It remains to be seen if only feed in tariffs shall be concerned or if the conditions of the purchase obligation shall also be modified. One can only hope that the photovoltaic sector can sufficiently assert its position during the consultation phase, states Sibylle Weiler, a lawyer from Sk & Partner in Paris.


Sterr-Kölln & Partner is a multidisciplinary firm of consultants having offices in Freiburg, Berlin and Paris, whose activity is concentrated in the renewable energy field for over 12 years. The advisors of Sterr-Kölln and Partner are recognized by banks with an international scope, investors, project developers and the local communities.


Paris/Freiburg/Berlin, 16th December 2010


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Attention editorial offices: For further questions please contact:

Sterr-Kölln & Partner
Rechtsanwälte, Wirtschaftsprüfer, Steuerberater

Mrs. Sibylle Weiler
Avocate au Barreau de Paris, Rechtsanwältin, LLM. Paris
4, Avenue Bertie Albrecht
75008 Paris
Tel: +33 (0) 1 53 53 46 70
Fax: +33 (0) 1 53 53 46 89
E-Mail: Sibylle.weiler@sterr-koelln.com


Mr. Markus Jenne
Diplom-Volkswirt, Steuerberater
Emmy-Noether Str. 2
D-79110 Freiburg
Tel: +49 761 490 54 0
Fax: +49 761 49 34 68
E-mail: Markus.jenne@sterr-koelln.com



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