The impossibility to use Sample Clauses

The impossibility to use. GOs and benefit from support schemes concurrently In France, producers are prohibited from marketing GOs when they also benefit from a support scheme such as an FIT or FIP contract.39 As the prices of GOs (approx. 2 euros/MWH in the last two years) are less interesting than the amount of public subsidies, producers will prefer public subsidies for the projects that are being developed, and give up valuating their guarantees of origin. This is a first disincentive to the use of PPAs: the companies con- suming electricity, which want to buy guarantees of origin (the only way of proving they source green energy), will have to conclude PPAs relating to new parks designed without subsidies, or parks exiting the FIT mechanism. This clearly reduces opportunities. For the installations which benefit from a FIT or FIP contract, it was considered so far that GOs corresponding to the electricity produced were transferred automatically to the actors with whom the contract was entered into, i.e. to EDF or to local distribution companies. Since the French Finance Law of 30 December 2017, GOs of pro- ducers benefitting from a support scheme can be issued to the benefit of the State, upon the State’s request. These GOs are then either transferred, free of charge, to cities requesting such transfer, or sold by auction.40 In a letter sent to the Minister in April 2018, XXX stressed that this reform was a ‘major barrier’ to the development of PPAs in France. These auctions, which are spot-type auctions, do not make it possible for purchasers to secure the price of GOs in the long term and to buy the guarantees of origin related to a given power production installation. FEE considers that this mechanism will mainly benefit the leading electricity suppliers willing to offer green energy, even though its traceability is lower than under a PPA. This reform is also an obstacle to the emergence of a real market for GOs (the value of a GO could rise to 3 euros/MWh if it were valued with the electricity sold, notably through PPAs). Nevertheless, this did not prevent the conclusion of the first PPAs – obviously out of the support mechanism.
Sample 1
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