The victory of the far right poses risks for the renewable energy sector

PARIS: France’s renewable energy sector is bracing for a sharp slowdown in wind and solar projects if the far right wins a majority in upcoming elections, just as new legislation was expected to boost the industry in nuclear-dominant France.

President Emmanuel Macron’s shocking decision last Sunday to call early elections may hand political power to the far-right National Rally (RN) party to Marine Le Pen, leaving it responsible for domestic policy, including energy.

The Supervisory Board has committed to ending subsidies for renewable energy sources and wants to stop the development of wind energy, including the demolition of already installed turbines.

According to its website, the party would instead invest in nuclear, hydro and hydrogen energy.

“It is clear that a parliament dominated by the Supervisory Board would facilitate the implementation of regulations that would at least slow down the development of renewable energy projects,” said a spokesman for Velocita Energies, a unit of Chinese company Envision Energy, which operates wind farms in France.

Shares of Engie, France’s largest wind farm operator, fell 6.1% since Monday, losing 2.1 billion euros in market value.

France lags behind its neighbors in renewable energy with around 45 gigawatts (GW) of wind and solar capacity installed, and is also lagging behind targets set by the European Commission.

In 2023, approximately 65% ​​of its energy supply came from nuclear energy.

However, this week the government was expected to introduce regulations setting out plans for the rapid expansion of solar and wind farms, with formal consultations scheduled to begin on June 27.

The plans included targets to double the annual rate of solar PV installations to reach 75 GW-100 GW in 2035, with 40 GW-45 GW of onshore wind and 18 GW of offshore wind planned for the same period.

The legislation, already delayed by almost a year, will now be shelved ahead of elections starting on June 30.

The RN is unlikely to dismantle existing wind turbines due to the threat of legal action, but permitting could be halted if the RN retains power, said an executive at a European company with wind farms in the country, who declined to be named.

Government support for solar panels was expected to cost around €590 million in 2024. However, according to an assessment by the French Energy Regulatory Commission, onshore wind energy will generate almost €3 billion for the state. — Reuters