France

Support schemes

In France the most important supporting schemes are as follows:

  • fixed feed in tariff schemes for RES according to the Energy Law (2010),
  • federal grants from the Environmental Assistance in Austria and
  • tax exemption for biomethane from mineral oil tax.

The plan for development of renewable energy to high environmental quality on November the 17th, 2008 provides a series of measures to facilitate the development of Renewable Energy. The planning law relating to the implementation of the Grenelle Environment Forum and the draft law on national commitment to the environment (current version available on http://www.legifrance.gouv.fr) translated into French law the measures recommended by the plan. Finally, programming multi-year investment of energy production achieved in 2009 set out a roadmap detailing the path to implement to achieve the goal of 23% in 2020 (this program will be updated before the end of the year 2012).

The principles of the obligation to purchase electricity from RES is included in the Law No. 2000-108 of 10 February 2000. It states that the purchase prices are intended to ensure a normal return to investment in production of renewable electricity. To do this, the price level at which the energy distributor must buy electricity is fixed by order to a level higher than the market price.
Each sector is subject to a specific feed in tariff order issued by the Ministers of Economy and Energy, after consultation with the Supreme Council of Energy and the Commission of Energy Regulation. Initial feed in tariff orders for biogas were made in 2002. New conditions of purchase of electricity produced from biogas have been validated over the years 2006 and 2011.

The basic tariffs are following :

  • waste facilities : rate between 8.121 and 9.745 c € / kWh, depending on the power plus a premium for energy efficiency between 0 and 4 c€/kWh
  • agricutural and industrial facilities : rate between 11.19 and 13.37 c € / kWh depending on the power plus a premium for energy efficiency between 0 and 4 c€/kWh and a premium for the treatment of livestock manure included between 0 and 2.6 c € / kWh

The feed-in tariffs are granted for a period of 15 years.

Direct subsidies
Several types of financial support for biomethane pathway are possible in France

  • direct subsidies ("Waste Fund" managed by ADEME) for biogas production investments : the budget was at 26 millions euros in 2011, increased sharply since 2007.
  • feed in tariffs for biomethane injection into the grid, prepared by an ordinance in November 2011 
  • feed in tariff for electricity generated from biogas (including biomethane) See further.

Green electricity tariffs biomethane taken from gas grid

  • For storage facilities for non-hazardous waste, the purchase prices of biomethane injected are fixed between 4.5 and 9.5 c€/kWh, depending on the size of the installation.
  • For other biogas plants, the purchase prices of biomethane injected consist of a base rate of between 6.4 and 9.5 c €/kWh, depending on the size of the installation, which can add a premium calculated according to the nature of the materials processed by the anaerobic digestion inputs used. 

A premium is calculated between 2 and 3 c€/kWh if the inputs are exclusively composed of waste from agriculture or agro-industries. It is at 0.5 c€/kWh if the inputs are exclusively composed of household waste. When the inputs are "mixed" (example : co-digestion), the premium is calculated on the prorated amounts of inputs used by the facility.

Investment subsidies for investments

Besides the feed-in tariff schemes there is also direct subsidies offered e.g. by French Environment and Energy Management Agency (ADEME), UE funds or from regional councils subsidy schemes. The feed-in tariffs for biomethane and biogas take into account the investment and operation costs for grid connection as well as the production and upgrading costs. 

Indirect subsidies

Tax exemptions or reliefs

No entry

Reduced grid related costs

In 2005 a comparably low grid system usage tariff was introduced for transport of natural gas and/or biomethane to CNG filling stations. Since the amendment of the Natural Gas Act (Gaswirtschaftsgesetz, GWG) in 2011 gas grid injectors (natural gas and biomethane) have to pay grid system use tariffs for the first time (before only the end consumers had to pay that tariffs). This means reduced costs for end-consumers.