France to Boost Ailing Solar Sector

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- France has announced measures to help bail out its ailing solar energy industry and boost the use of European solar equipment.

The country's Energy Minister, Delphine Batho, has said that the government wants to double the country's development of new solar capacity to 1,000-megawatts (MW) a year, starting with a tender later this month for 400 MW of new capacity from large ground or roof-based projects. In an effort to protect its own -- and Europe's - role in the solar sector the government will be offering an extra 10% on top of its regular feed-in-tariff (FiT) for solar projects, to developers that use solar panels produced by the companies in the 30 countries making up the European Economic Area.

Batho said: "The measures are aimed at restarting the solar sector in France. They will encourage manufacturing and seek to cut an industry trade deficit that grew to €1.35 billion euros ($1.8 billion) in 2011".

France's solar industry has faced incentive caps in recent years under the previous government. The new socialist government, under President Francois Hollande, has promised to boost the renewable energy sector while reducing the country's heavy reliance on nuclear power. According to government statistics, in September France had approximately 4,000 MW of installed solar capacity connected to the grid, an increase from 2,950 MW at the end of 2011.

Batho claimed the new incentives will help generate up to €2 billion ($2.62 billion) in solar investment and help safeguard up to 10,000 jobs. She described the decision to offer extra incentives to European produced panels as "ecological patriotism", citing a wide-ranging European Commission probe into whether Chinese solar firms have been dumping below cost solar panels on the European market.

In September last year, the E.C. launched its largest ever anti-dumping investigation over allegations that Chinese solar panel firms were dumping solar panels and components into the European market at below cost prices in order to secure greater market share. For additional information, see September 12, 2012, article - European Anti-Dumping Probe into Chinese Solar Firms.

Two months later the E.C. intensified its investigation into the matter by launching an anti-subsidy ("countervailing duty") investigation into imports of solar panels and their key components originating in China. For additional information, see November 14, 2012, article - Europe Shines New Light on Chinese Solar Investigation.

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