France renewable energy policies

Louise ORIOL

Renewable Energy Office

Ministry of Environment, Energy and the Sea

1st September 2016

Key energy figures about France

Total final energy consumption (2014): 164 Mtoe

Electricity production in 2015 : 546 TWh

Where do we stand in 2014?

Biofuels

Solid biomass Hydropower

Other renewables sources - heating

Wind powerHeat pumps

Other renewables sources - power

Share of renewable energy sources (RES) in the final energy consumption from 2005 to 2014 and path to achieve 2020 objectives

14.3

16

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2020 RES goals :• 27% electricity• 33% heating and cooling•10.5% transport

Energy transition for green growth Act (2015)

Set clear and ambitious goals :

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Promote renewable energy, to create a balanced mix

In 2015, 16,3% of the energy consumed was of renewable origin. The aim is to raise this to 23% in 2020 and 32% in

2030.

AMBITIOUS GOALS• Double the share of renewables in the French energy system over the next fifteen years• Promote the improved integration of renewable energy sources into the electrical system via new support mechanisms.

• Revision of support schemes for renewables (electricty sector)

• Acceleration of grid connection for electric renewable energyproduction sites

• Simplification of procedures : single permitting

• Facilitating investments in RES projects for local communities :

- Municipalities are able to acquire shareholdings in limitedcompanies whose corporate purpose is the generation of renewableenergy.

RES support mechanisms for each sector

Electricity

Feed-in-tariffs

Feed-in-premiums

(new)

Tendering schemes

Heating and cooling

Heat Fund

through regional aids or call for

projects

Energy transition tax

credit

0% interest loan

Energy savingcertificatescheme

Transport

General tax on Polluting activites

Tax relief for biofuel (ended

in 2015)

Ecological bonus for low

carbon vehicles

Gas

FIT for biomethane

Tenders (new)

Regulatory measures for new buildings :- set energy efficiency standards (<50 kWh/m²/year) - impose that 5 kWh/m²/year are produced from RES

Support for innovation through several calls for projects addressing different levels of maturity

Support for innovation

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Innovation is mainly financed by the “Investments for the Future”Fund

Innovative projects regarding renewable technologies are financed ateach stage of maturity through different programs :

Calls for very low TRL projects (subsidies for 100 – 300 k€)

Calls for pilot/demonstration projects (loans with low interestrates + subsidies for projects from 1 to 20 M€) :

Examples of calls in the electricity sector :

- Floating offshore wind (projects under examination, 2 projectsalready selected)

- Marine current energy (on-going)

- Storage technologies (on-going)

- Other renewables (PV, solar thermal, onshore wind hybridprojects) (on-going)

Special calls for small companies/start-ups in order to helpthem develop an innovative product/concept (subsidies for 100– 500 k€)

Focus on Electricity

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The objective by 2030 is to have 40% of renewable electricity inthe production mix

New targets for each renewable energy sources (RES) set in 2016

Support mechanisms are implemented in order to achievethese targets

Support mechanisms for electricity

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Feed-in-tariffs (exist since 2000s)

Feed-in-premiums : market price + premiumsince 2016

Direct contracting

Contract with compelled operators

Reference price set for each eligibletechnology

Small installations (<1MW) :

Feed-in-tariffs(exists since 2003)

Feed-in-premiums since 2016

Tender procedures

Pay-as-bid mechanism

Selection mainly price-based + othercriteria (environmental criteria orinnovation)

Can be launched as long as thetargets are not met

Medium to large scale installations (> 1MW except PV and small hydro) :

Support mechanisms

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Tenders are especially appropriate for renewable categories with one of the following characteristics :

Information asymmetry regarding the cost of a giventechnology (ex : PV)

Management of conflicts over the use of land and resources (ex : high-capacity biomass)

Scarcity of available areas (ex : offshore wind)

Direct contracting is better suited for :

Small-scale installations (ex : residential PV, biogas)

Mature sectors for which the costs are relatively wellknown and stable (ex : onshore wind)

For sectors with numerous potential development sites and limited conflicts of use (ex : PV, onshore wind, biogas)

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Thank you very much for your attention

Contact : louise.oriol@developpement-durable.gouv.fr

To find out more :

Ministry of environment, energy and the sea website :

http://www.developpement-durable.gouv.fr/-France-launches-its-energy-.html

http://www.developpement-durable.gouv.fr/IMG/pdf/14123-8-GB_loi-TE-mode-

emploi_DEF_light.pdf

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ANNEXES

Technology support overview (from 2016)

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Feed-in-tariff (FIT)

Feed-in-premium (FIP)

Tenders (T)

Renewable Energy Sources 100 < 300 < 500 ≤ 1000

Waste incineration

Biomass

Biogas from waste water treatment plant and landfill

Biogas (others)

Geothermal power

Solar PV FIT

Energies marines

Offshore wind

Hydropower

Capacity (kW)

Gas cogeneration

FIT

FIPT (FIP)

FIP

FIT FIP

FIT

T (FIP)

FIT

FIP

> 1000

T (FIP)

FIT

AO (CR)

FIP

T (FIP)

Onshore windFIP

T (FIT) T (FIP)

FIT (demonstration projects only)

Feed-in-premiums (FIP)

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€/MWh

Tariff(regulated or set by the tender)

Wholesalemarket price

Market revenues

Premium received

This amount has to be reimbursed by the producer

Feed-in-premium scheme (or contract-for-difference)

Comparison of the two schemes

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€/MWh

Market revenues

Tariff (regulated or set by the tender)

Premium received

Feed-in-TariffWholesale

market price

Feed-in-tariff scheme

Feed-in-premium scheme