France's Ministry of Ecology, Sustainable Development and Energy and its Ministry of Economic Recovery have produced a report recommending gradually phasing out the nation's feed-in tariff program in favor of a tender system, which it says is driven by cost concerns.

The government has not said when it plans to act on the recommendations in "Wind and photovoltaics: Issues of energy, industry and society". The report features a particularly strong attack on feed-in tariffs as a system.

"The first negative effect of tariffs is to open a window on demand, preventing steering of the development of the sector and especially the financial burden," states the report.

"It is still theoretically possible to revise the rates based on the development of new facilities, however the adjustment of these rates is usually late compared to the downward trend in investment costs."

"This was particularly true with photovoltaics, which has resulted in windfall effects and the uncontrolled bubble of 2010, leading to a moratorium which restored some balance."

Arguments for tenders include control of market development

The report goes on to call the guaranteed payment mechanism of feed-in tariffs as "contrary to the principle of economic enterprise", and argues that feed-in tariffs discourage self-consumption.

In its argument for a bidding system, the document notes that it is easier to guide the development of markets, and to issue technical specifications. However, it does acknowledge that tender systems are more difficult to implement for small, distributed generation.

Policy stability stressed

The ministries also state that whatever system is ultimately adopted, it is essential to put an end to rapid regulatory changes and impose policy stability.

The report includes a host of other recommendations including providing more local control to wind and solar developments, and is based on an inventory of the solar photovoltaic (PV) sector conducted by the two ministries.

2012-09-20 | Courtesy: French Ministry of Ecology, Sustainable Development and Energy | solarserver.com © Heindl Server GmbH

Our editorial selection of breaking solar news is published at:
www.solarserver.com/solar-magazine/solar-news/top-solar-news.html