Apparently, cutting the feed in tariffs to already built solar power plants will mean the solar power plants cease to exist:
France at risk of losing 2 GW of solar capacity due to retroactive FIT cuts
How will that work?
The French parliament began, on Saturday, the discussion about France’s upcoming budget law, including an amendment which, if approved, would introduce retroactive FIT cuts granted to PV projects between 2006 and 2010 with capacities exceeding 250 kW.
“If approved by the members of parliament, this measure would mean the immediate termination of contracts for the majority of the 800 impacted PV plants,” Xavier Daval, CEO of French solar technical advisory KilowattSol, told pv magazine. “This decision would force them to file for bankruptcy, as these plants were built with non-recourse financing.”
According to Daval, banks and lenders behind these projects will be those who will suffer the most because the remainder of the borrowed money will never be repaid. “But the most disastrous consequence is that these plants, which will no longer have an operator and no longer have a purchase contract, will stop producing power,” he further explained. “And France will thus see its deployed solar capacity fall by nearly 2 GW. At a time when Europe is calling for a Green Deal, we must once again speak of a French exception.”
Isn’t that a fun piece of idiocy.
What goes bust is the legal wrapper – company, charity, partnership – that owes the money secured on the power plants. The power plants continue to exist. And become the property of the creditors of course.
Meaning that the creditors will now own and operate the power plants in order to try to get their money back.
Capitalism means that capitalists lose money, not that we blow up perfectly good operating assets.