Despite abundant resources in wind, installed onshore wind capacity in France was only 10GW at the end of 2015, compared to 36GW in Germany and 28GW in Iberia. The French national plan forecasts total wind capacity to increase to 15GW by 2018 and 26GW by 2023. To date, the French wind sector has received relatively low subsidies and has benefited from a robust 15-year tariff regime, providing protection against power price variability.
With in-house capabilities across the entire project cycle and a strong local footprint, Valorem is well positioned to benefit from this shift in energy mix. Led by its experienced management team, Valorem has a significant pipeline of projects at an advanced stage of development that it expects to convert into operating assets, with further projects at earlier stages to bring through the development process. In December 2016, it applied for permits and tariffs for over 450MW of its wind pipeline under the French 2016 subsidy regime.
The installed capacity continues to develop well. Since 3iN’s investment, 57MW of Valorem-owned projects have been commissioned or have entered construction and will add to the 142MW in operation at the time of the acquisition. The pipeline remains healthy, with c. 150MW of projects at advanced development stage.
Similar to wind, France benefits from strong solar resources, but installed solar PV capacity remains low, with only 6.2GW at the end of 2015, compared to 36.9 GW in Germany. Solar PV capacity is expected to increase from 6.2GW in 2015 to 8.0GW in 2020.
Valorem has been awarded 4 projects under the CRE3 auction, totalling 24MW of owned capacity with a tariff ranging from €75/MWh to €80/MWh. It also has 100MW of PV projects at various development stages that will be submitted in future tenders.
All data as at 31 March 2017.