France

Current Situation
The French energy system has nuclear power as a key pillar, providing domestic energy that could be considered a low-carbon source. Energy efficiency has become another pillar; energy intensity has been reduced by 15% since 1991, is among the lowest in the EU, and is the lowest among the five largest EU economies (France, Germany, Italy, Spain and the United Kingdom). Biomass could eventually be another key pillar, as France is one of the largest producers of biofuels for transport as well as making considerable effort on bioenergy for heat and power.

As with most EU countries, the current situation is one in which France is heavily dependent on imported oil; transport accounts for 68% of the final energy consumption of petroleum products. Households are the main consumers of electricity (34%) and also the main consumers of gas (46%); consequently, energy efficiency efforts are aimed especially at households (Panorama of Energy, Eurostat 2008)

In 2006 the share of renewable energies to final energy consumption was 10,4%, ie 16,9 Mtoe of 162,9 Mtoe total consumption. This share is still modest, especially considering the natural potential of the French territory. However France has a large potential in each sector of renewable energy: hydraulic power, geothermal, wind power, solar and biomass.

One of France’s particularities is the preponderant share of nuclear energy in its electricity production (77% in 2007, ie production of 439,8 TWh). This figure makes France the second largest producer of nuclear electricity behind the USA. This situation should be confirmed in the next few years with the current construction of a so-called third generation nuclear power plant.

Hydro and coal have historically also played a role in the energy mix. In recent years, however, coal has been replaced by natural gas; the electricity production from natural gas increased during 1991-2006 from 3 to 22 TWh whereas the electricity production from coal and lignite decreased from 40 to 23 TWh. Electricity production from biomass and wind has been added but together this accounted for just 1.2% of the total in 2006.

The renewable electricity share has increased from 2005 (when it reached its lowest level). Compared to 2006, the production of renewable electricity is progressing for the second consecutive year: + 6.7% even if compared to the total production, renewable electricity stays quite low, a bit more than 12% of the total electricity production. This increase comes to half from renewable hydropower. The other half concerns the wind power but also other products of thermal power.

Due to the French territory the second largest source of electricity, in front of fossil and fissile fuels, is hydraulic power, which reached a production of 64,2 TWh in 2007, which represents 11,2% of total electricity. Once hydraulic power is taken away, the other renewable sectors only represent 1,5% of total production. Among these other renewables, wind power is the sector that has shown the most dynamism. Its average annual growth rate amounted to 76,5% for the last ten years. For 2007, 787 MW were installed, bringing France’s total installed wind power capacity to 2,200 MW. France has a dozen wind farms with a capacity greater that 30MW.

Another sector with attractive growth in 2007 was solar photovoltaic energy: +52%. According to the SER (the union of industrials in RES sector), 105 MW of Photovoltaic (PV) were installed in 2008, including 75 in Metropolitan France and 30 in the French overseas territories (DOM-TOM). The global production reaches 175 MW. But it remains behind geothermal energy in terms of electricity production since the sector reached production of 95 GWh in 2007. With a 0,7% share of total production, biomass is the second renewable source the most used for electricity production, very far behind hydraulic power. Marine Energy is produced by the La Rance tidal power plant, inaugurated in 1966. It produced 519 GWh in 2007.

Furthermore, France is a net exporter of electricity; in 2006, it exported 64 TWh or 12% of its gross electricity production; this is a quite considerable amount of electricity, representing more than the entire electricity consumption of a number of EU Member States.

The heat production from renewable sources (including biofuels) increased moderately with 10.9 Mtoe (2.9%). The steady production of thermal heat pumps and biofuels comes in to effect more than offset the lower consumption of fuelwood in the residential-tertiary sector related to a particularly mild winter.

The heat is carried mainly by wood fuel (78% to 8.5 Mtoe), but its share is decreasing significantly in favor of biofuels (11%) and heat pumps (5%). The share of renewable waste is stable (3%) and the residual on the solar thermal, geothermal, biogas and crop residues (3%).

Highlights of the heat production sector in France in 2007:
A more moderate growth of solar heat through the support measures taken within the framework of the ADEME and the introduction of the tax credit, about 225 000 m2 of new solar thermal collectors were installed in however, increased less than the previous year, except for collective solar thermal and tertiary.
Stagnation heat production from geothermal, biogas and waste collection.
A slight recovery in the production of heat from the waste after the end of the old standards.
The pursuit of sustainable development of heat pumps, with the installation of about 70 000 heat pumps additional 2007 (59 000 in 2006).
A doubling of the quantities of biofuels placed on the market in both the ethanol in the sector of the biodiesel, following the granting of approvals in 2007 (+ 920 000 t) and the commissioning of new capacities production.
A significant decline in real climate of the use of firewood in the residential / tertiary linked to a 2007 global climate much milder than the average climate over the period 1976-2005, but almost stabilizing climate averages.

The resources of wood energy in France, used up to 9.2 million toe in 2004, show great potential for development in view of the pool of available wood. The stock is distinguished in four classes:
The non-co-crushing of the timber industry (bark, sawdust ...)
Some wood products end of life (pallets, crates ...)
The timber from the maintenance of hedgerows, copses and woodlands
Residues from the operation and maintenance of the forest.

This last class is by far the most important. The French forest is growing on the surface and volume. The forest occupies 15.4 million hectares in 2003, representing 28% of national territory, which represents a volume up to 2.1 billion m3 of timber. The forest is growing continuously for two centuries: it now occupies over 50% of territory and more, until the late nineteenth century. The potential exploitation of the French forest is estimated at more than 7 million toe per year.

The share of renewables in gross inland consumption was 6.3% in 2006, while the share of renewables in electricity generation was 12%. The existing target for renewable electricity (2001/71/EC) in 2010 is 23% while the proposed target by France for 2020 was 21%. There are quotas and excise tax exemptions for biofuels blending and feed-in tariffs for renewable electricity, which were just revised in 2006-2007. These incentives are really important, these are the ones that drives the RES sector.

The biomass sector, composed of 47,6% solid biomass, 40,5% renewable municipal waste and 12,9% biogas, has had an average annual growth rate of 6,8% since 1997 and reached a production of 4,2 TWh in 2007.

Perspectives
Since 2000, the government gave back some texts to reach the European and national objectives towards the environment: Climate plan 2004-2012, actualized in 2006, the program law fixing the energy policy orientations, the thermal regulation 2005, etc.

In 2005 appeared the law POPE, the program that fixes the energy policy orientations. The law transcribes the European directives or improves it. The objectives are:
to decrease the energy intensity by 2% per year until 2015, and then by 2,5% per year between 2015 and 2030
to decrease the GG emission by 3% per year to reach a division by four in 2050
to produce 10% of the French energy needs from renewable energy source by 2010
to increase the renewable heat production by 50% by 2010
to increase the portion of the biogas to 2% in 2006, and 5,75% in 2010

Within the framework of the ‘triple 20’ of EU (20% improvement in energy efficiency, 20% reduction in greenhouses gas emissions and 20% renewable energy supply) France has been set at a minimum of 23% renewable energies in its final energy consumption for 2020.

More recently, the law Grenelle environment confirms the engagement of France. Regardless of its conclusions, the Grenelle Environment has had the interest to put the environment and energy at the heart of the news and put around a table actors of society who did not have the habit to sit together. Thus, October 24 and 25, 2008, representatives of local authorities, the State, NGOs, employers and employees have entered into several months of work. In this way, the Operational Committee (COMOP) 10 has established a ‘high environmental quality renewable energies development plan’ which notably estimates the contribution of each renewable sector to the additional 20 Mtoe that have to be produced in the next 12 years.

Following measures have been announced :
A national program for renewable energy development, with the same ambition as the development of nuclear power in 1974.
An ambitious program on the new building (80 kWh/m2/year max for building consumption in 2010 and 50 kWh/m2/an in 2012) and on the former (less 38% of energy consumption in renovated old buildings).
Development of environmental taxation: “eco-pad” type of annual bonus malus for cars, eco-fee on trucks and being considered a contribution to energy - climate.
The end of appliances less efficient and in particular the symbolic light bulb.

However, the absence of this measure is perhaps the most important: governance. The need to develop an energy system more effectively dividing responsibilities between the state and local authorities is not included in the conclusions (only a few aspects are explicitly mentioned like the generalization of territorial climate plans).

The first step of the law Grenelle, i.e general policies, has been definitely adopted by the French institutions but the implementation of these policies and relaxation of budget are still to be done to reach these targets. The Grenelle might be seen as the beginning of an energy revolution with a predominant share in the development of renewable energies and energy efficiency. This reform is still to be done and the practical and ambitious implementation of all the measures must be confirmed.

As it concerns the financial incentives, there are several tax credits, quotas and excise tax exemptions for biofuels blending and feed-in tariffs for renewable electricity applicable in France.

Concerning the tax credits, the amount depends on the final invoice of equipments such as heat pumps, wood boilers… In 2009 limit of eligible expenditures is 8000 euros for a one person household and 16 000 euros for a two-person household.

No-interest loan exist for thermal insulation housework. These financial measures push individuals to use RES for their own houses. Of the system permitting promotion of renewable energies, the feed-in tariffs seems to be the one that permits most rapid development and most favors to the constitution of a national level industrial offer because they are interesting for individuals, businesses and public and local authorities. French distributors of electricity have to buy electricity produced by RES at compulsory rates depending on the renewable energy used.

France has implemented a white certificate system (CEE, Certificat d’économie d’énergie) : producers, suppliers or distributors of electricity have to impulse actions of Energy savings. If energy producers do not meet the mandated target for energy consumption they are required to pay a penalty. If they realize more energy savings than mandated the can send white certificates.

The National Agency for environment and energy efficiency, ADEME, was commissioned by the Government to implement the objectives of the Grenelle Environment Forum. One of its roles is likely to observe the market trends and anticipate them to prepare the market. In this context, the ADEME is conducting a study on specific equipments related to energy efficiency, public transports, Private transport (A and B), equipments related to the production of renewable energies and energy sales following estimates and forecasts. According to this study, the growth rate of the RES market should be 20% between 2007 and 2012, which is already the actual growth rate.

To reach the target of 23% renewables, all the sectors are going to have to be mobilized but three sectors have been attributed the principal role: biomass, wind power and biofuels. Targets for biomass are ambitious: 3800 ktoe of heat should be produced in 2020 in addition to the 1400 ktoe already supplied in 2006. That is why has been created the renewable heat fund, which notably targets offering producers a bonus for any kWh of renewable heat that’s valorized. Concerning wind power the sector is technologically mature and the industrials are ready to meet the demand. In total wind power will thus be responsible for producing more than half of additional of renewable electricity in 2020. The problem is the complexity of the administrative procedures. Beyond these administrative incidents, the element that risks curbing wind power development the most continues to be its acceptability. Each region should set targets in terms of wind power development, so that local officials could have better visibility and local authorities could more easily accept the start-up of projects.

A major challenge for biofuel sector is sustainability, hence the importance of the methodologies studies that target establishing the ecological and energetic balance sheet for first generation biofuels, and advocates development of second-generation biofuels. However the sector’s evolution remains one of the most difficult to define, seeing to what degree its regulatory framework within Europe continues to be discussed and debated.

Savings: to reach France’s target of 23% renewables, consumptions, first, have to be reduced. 61% of French dwellings have been constructed before the thermal regulation of 1975. In 2050 these dwellings will still represent between 30 and 40% of French dwellings. Energy efficiency has to be considered before development of renewable production and many actions are taken in this way (advertising campaign for energy savings…)

Key Players
Key players in the field of energy are in one hand energy companies dominated by large groups and on the other hand state bodies (national, local agencies), consumer associations and environmental protection non governmental association.

National and local agencies
In France the ADEME and the MEEDDAT, French ministry of ecology, energy, sustainable development, and territory development are responsible for energy control and promotion of renewable energy. The government controls the policy and is able to boost the measures and consequently the market. The ADEME is a public body operating under the authority of three ministries: Ecology and Sustainable Development (MEEDDAT), Industry and Research. The main missions of the agency are to initiate, encourage, co-ordinate, develop and implement action for environmental protection and energy saving. ADEME also undertakes projects involving evaluation, advice and assistance on behalf of different target groups including: public administration, private and public enterprises and the general public.

The local authorities are the keys to develop RES and energy management at the consumer’s scale. They are now linked to energy info centers to advise citizens.

Main Energy agencies
The network of the Energy Information Centre (EIE) is managed and co-financed by ADEME. ADEME has developed since 2001 in close partnership with local communities, a network of information and advice on local energy efficiency and renewable energy. ENERGY INFO network consists of 160 spaces and has about 300 advisers to public service. This network services include free information and advice about energy efficiency, the rational use of energy and renewable energies. In each Energy Info Center, experts tell to the public and advise the public on all matters relating to energy efficiency and climate change: what are the simple requirements? What type of equipment to choose? What are the financial support? etc.

CLER network (Liaison Committee for Renewable Energies) is a non-profit organisation created in 1984. It is an association networking more than 160 organisations working in the field of renewable energy and rational use of energy all over the French territory. CLER operates as an umbrella body for local organizations involved in promoting energy efficiency and the development of renewable energies. CLER main tasks are networking, informing (thousands of books and magazines ran by a full time manager, web site (news, job offers, training lists, …), national open days) communicating, policy research and advocacy.

The SER (Syndicat des Energies Renouvelables) is union of RES industrials, it represents and make enquiry about the RES sector. The Renewable Energy Union (SER) was established in 1993 (it was called then SIPROFER) for:
promote the interests of industrials and professionals french renewables.
defend the french interests in key programs to support the sector.

It now has 300 enterprises or associations of enterprises with activities in the sectors of wind, geothermal, solar photovoltaic, solar thermal, hydropower, wood energy, biofuels and other streams of the biomass. Over one thousand companies are also represented through the affiliated associations in SER. SER promotes renewable energy through the development of entrepreneurial activities supported by its members. To this end, the SER argues with governments, national, European and regional as well as regulatory bodies. The SER argues the benefits of these activities to the public and media.

The National Federation of CAUE is a county-level organization that provides a number of services (information, advice, awareness-raising, training, etc) to promote high standards in architecture, town planning and the environment.

Energy companies
Both the electricity and gas markets in France are highly concentrated, with large incumbent suppliers continuing to dominate after liberalisation. The energy market was liberalized in 2007 in France. Switching among large industrial customers has been fairly significant, while residential customers have been on the regulated tariffs, which are lower than the EU average in the case of electricity and higher in the case of gas. The primary power company, EDF, was responsible for 89% of generation in 2006 and an even higher share of the retail market, while there were 160 minor suppliers. The gas market has 3 major wholesale suppliers covering 98% of the market, 3 retailers that accounted for 89% of the market, and 33 small retailers or distributors that covered 11% of the market. Consequently to the liberalization, the State company Electricité De France (EDF) was privatized and some other energy suppliers appeared: Direct Energie, Enercoop, Poweo, GEG… However the electric power industry in France is still dominated by EDF that controls 97% of the French market of electricity. EDF has created its subsidiary company EDF énergie nouvelles that capitalizes 2,8 billion euros at the stock exchange, with a turnover of 562 million euros, thus the backlog of French equipment production is decreasing. Currently, the French state is the majority shareholder of EDF. GDF SUEZ is in France the leading supplier of gas, leading player in wind power in France, the 2nd ranked electricity producer and supplier in France and the 2nd ranked player in hydroelectricity.

There is no French companies leader in the field of renewable energies. France didn’t succeed in jumping at the opportunity that was offered for wind power when the going was good for instance. Vergnet is the French industrial of wind power. Silpro is the main silicon builder and Tenesol the main panel builder.

Job demand
Many studies try to evaluate the potential creation of job, which would be due to the development of renewable energies and energy efficiency. Strong employment in developing sectors such as building, collective transport, renewable energy are foreseen.

Regional studies are also currently developing because of the involvement of local authorities, which consider the dynamism of regional territory. The main reference is the European MITRE Study, which estimates for 2020 and for the whole Europe the creation of 1.4 million full-time equivalent jobs thanks to the policies already initiated and 2.5 million with more ambitious policies. According to this study 238 000 to 373 000 new jobs should be created in France.

Furthermore, a WWF investigation showed that a decrease of CO2 by 30% would create 684 000 jobs in France. The study is comprehensive: it takes into account all sectors and includes destruction of jobs in declining sectors (activities relating to petroleum products, coal, gas, electricity, and car manufacturing and trade), but also the destruction or creation of jobs induced by the impact on the purchasing power of households. According to the WWF study, it is the expenditures made to achieve energy efficiency, which will generate the most jobs (564 000). For example, new rail lines will create jobs in infrastructure, construction of railway equipment and operation. Indirect jobs will be created in the supply chain of these sectors (steel, non ferrous metals). The renewable energy sector alone would create more jobs (316 000) than those destroyed in the conventional energy sector (138 000) and car industry (107 000). According to the study of ADEME previously mentioned, activities producing goods and devices for renewable energy development and energy efficiency improving (EEI) employed directly 205 000 persons in 2006 with the following repartition:

To achieve the goals of reducing energy, France will focus on the renovation of existing housing, this is where the bulk of dugisement energy savings. For existing housing, the target set by the Grenelle of the environment is to reduce by 12% in 2012 the consumption of old park and 38% in 2020. In first approximation, on the whole housing represents a reduction of about 60 TWh of final energy consumption in 2012. So, the sector of the energy efficiency is crucial for France and might create many jobs. According to the ADEME study, the work insulation of existing homes could totalized 197 385 jobs in 2012. The renovation of the buildings will represent an important center of employment in the future.

A release of the SER in January 2009 announced that jobs in wind power sector will double by 2020. Actually, according to the study “Wind at work” published by the EWEA (European association of wind energy) in January 2009, it is said that the number of jobs in this sector will increase from 154 000 to 325 000. The wind turbine builders represent 37%of the direct employs of the sector, the components manufacturers 22%, the projects developers 16% and the installation and maintenance operations 11%. Now, numerous French companies (Eiffel, Rollix, Defontaine, Carbone Lorraine, etc.) furnish to builders the components that will be integrated to wind turbine installed in the whole Europe. The total of employees will probably double in France by 2012 rising from 7 000 today to 16 000 (in research and training centers, maintenance, components manufacturing, etc.). In 2020, with a wind turbine total power of 25 000 MW, according to the Grenelle objectives, the SER estimates that 60 000 persons will work in the wind power sector.

The wood energy is a sector really dynamic in France, strong jobs growth was observed over the period 2000 – 2006. Employment in the wood-energy covers a range of activities that can be classified into three main areas:
The production of different fuelwood (wood logs, forest and wooded platelets, granules…)
Activities related to storage platforms
Manufacturing farm equipment and wood

In 2006, the sector accounted 59 490 jobs. Gradually an industrial covering all segments of the production of photovoltaic systems is developed in France, supported by a major effort to research and development, and emphasizing integration built. We expect a labor market of more than 13,000 positions in 2012, mostly in installation and maintenance.

The french market is the second European market. After two years of high growth markets solar thermal equipment, however decelerated in 2007 (8.4%). Direct employment might reach 12 000 positions by 2012. Since 2002, the pace of growth in sales of heat pumps on the French market is on average 42% per year. The target of 100 000 annual sales could be exceeded by 2009. The industrial base was strengthened and benefits of standardization efforts undertaken, as regards both equipment and installation. However, the development of the market may face the problems of training and financing capacity of households. More than 18 000 people should work in this sector by 2012.

It is likely that there will be no or very little job creation in the hydropower sector in France. This sector does not appear to be developping in the near future. Despite the success of the Soultz-sous-Forêts, the development potential of deep geothermal energy is limited. No new jobs creation are planned in the next years.

New jobs are created admittedly but this new demand will lead to a simple modernization of traditional jobs with addition of “renewable’ skills. Opportunities cover all skill levels but a difference is noticeable between job offer and demand. Most of offers concern job linked to formation under the degree level whereas candidates are often overqualified.

France

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