BMI View: Having passed twice in the National Assembly, the energy transition bill - which intends tophase down nuclear power and increase the proportion of renewables in the power mix - signals thegovernment's intention to prop up the French renewables sector. However, the Senate opposing andwatering down this bill in order to protect a strategic nuclear sector questions whether Hollande candeliver on his promises. As such, we expect the direction of policy to remain opaque before any finallegislation is passed, muting our forecasts for the French non-hydropower renewables industry.
We therefore retain our cautious approach to the Hollande administration's plans to boost reliance onrenewable energy at the expense of nuclear power. Protracted investor uncertainty over French energypolicy is likely to be the result, translating into slow growth in the French renewables sector before acompromise between the two houses of parliament is reached. We point to the Senate's unfavorable windpower amendments in the bill as negative, meaning the wind power sector could again be adverselyimpacted by regulatory uncertainty and decreasing market predictability.
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