EDF Energies Shares Decline After France Reduces Rates for Solar Energy

EDF Energies Nouvelles SA, the renewable-energy arm of Electricite de France SA, fell to a one- month low in Paris trading after the government cut tariffs for solar power.

EDF Energies Nouvelles declined as much as 4.8 percent to 30.14 euros, the lowest since July 19. The shares have dropped about 16 percent since the start of the year.

The French government yesterday announced a 12 percent drop in the feed-in tariffs for solar power produced from photovoltaic panels other than those installed on individual houses from next month. Spain also has plans to cut prices for solar power while Germany reduced the price for sun-generated electrity from July.

The rates were lowered because the cost of solar panels has dropped, according to a government statement on the new rates. France will have 850 megawatts of installed photovoltaic capacity by the end of 2010 and plans to add 500 megawatts annually, the government said.

EDF Energies Nouvelles is installing wind and solar capacity as the European Union aims to get 20 percent of its energy from renewable sources within 10 years, reducing dependence on oil and natural-gas imports. The Paris-based company, which has started building solar farms in France, Spain and Canada, is targeting 500 megawatts by the end of 2012. It plans to have 4,200 megawatts of installed wind capacity by that time.

To contact the reporter on this story: Tara Patel in Paris at tpatel2@bloomberg.net

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