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Renewables could finance a large part of the tariff shield

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Baptiste Morin, edited by Juliette Moreau Alvarez
06:08, September 25, 2022modified to

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06:09, September 25, 2022

The tariff shield relieves the French but is expensive for the government: 45 billion euros in 2023. However, part of its financing is done through renewable energies which offer several billion benefits to the State. A real gold mine.

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When renewables finance the tariff shield. With soaring energy prices, renewable energies have become a goose that lays golden eggs for the state. This new financial windfall will finance a large part of the extension of the tariff shield in 2023. The bill is reduced by almost two thirds.

In 2023, the tariff shield will cost 45 billion euros. But the state will be able to reduce the bill by 29 billion euros, thanks to renewable energies. In large part, it is the result of a compensation mechanism. For a long time, the state subsidized renewable energies. In the beginning, solar or wind energy cost more to produce than to sell. The State is counting on the repayment of “19 billion euros in profits which are made by energy companies on solar and wind electricity”, detailed Bruno Le Maire, before the Economic Affairs Committee of the National Assembly, on September 14.

Nine billion euros of unpaid contribution

To this must be added a billion euros in additional revenue from the hydroelectricity of the national company of the Rhone (CNR). There are also nine billion euros of CSPE, the contribution to the public electricity service. Normally, the State pays it each year in support of renewable energies. But this year, they don’t need it. “When the prices are above this guaranteed price, it seems legitimate to me that the State recovers the setting”, had estimated Bruno Le Maire before the deputies. This is how the note of the tariff shield is reduced to 16 billion euros.

Source: Europe1

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