EDF’s Solar ‘Time Bomb’ Will Tick On After France Pops Bubble
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France’s solar power boom that’s led to farmers building unneeded barns just to cover them in panels is costing Electricite de France SA more than a billion euros ($1.3 billion) a year as it meets state pledges to pay above-market prices for renewable energy.
French payments for solar-generated electricity sold into the distribution grid were the highest in Europe in 2009, leading to a 10-fold capacity increase in two years. What’s been a boon for panel owners and manufacturers has hit EDF because a tax to cover the higher costs of renewable electricity has fallen short.