Promotion Act to Accelerate Renewable Energy Production Enters into Force
‘Ecological plan’ to be announced with detailed vision and roadmap
French energy policy and goals
Looking at the French government's energy policy, first of all, there is a multi-year energy planning law (PPE). This is an energy policy established by the French government with a 2050-year implementation plan every 10 years, with the goal of achieving zero carbon emissions by 5. It was enacted by the 'Energy Transition Act for Green Growth' in 2015, and production targets for 2019 to 2028 have been set, with five-year targets from 2019-2023 and 2024-2028 included.
The goals to be reached through the energy plan can be found in the 'Energy and Climate Act' revised in 2019, which includes 2020% of new and renewable energy in final energy consumption by 23 and 2030% reduction in greenhouse gases compared to 1990 by 40, 2012 The goal is to reduce final energy consumption by 20% compared to 2012, reduce primary fossil energy consumption by 1% compared to 40, improve energy efficiency by 27%, and reach 33% of new and renewable energy in final energy consumption.
However, the proportion of new and renewable energy in France's final energy consumption in 2020 was 19.1%, failing to reach the original target of 23%, making it the only EU country not to achieve the target.
‘Renewable Energy Production Promotion Act’ takes effect, ‘Ecological Plan’ roadmap to be announced
President Macron announced the direction of energy policy in February 2022 and announced plans for large-scale development of renewable energy and new nuclear power plants. By 2, the goal is to expand the installed capacity of solar power facilities tenfold to more than 2050GW, build 100 offshore wind power plants to reach 10GW, and more than double the amount of onshore wind power generation to 50GW. President Macron also announced a plan to accelerate energy conversion projects such as nuclear, wind, and solar energy in September 40, and a specific bill for implementation will be passed in the National Assembly through the 'Renewable Energy Production Promotion Act' (loi relative a l) It was developed into 'acceleration de la production d'energies renouvelables' and came into effect in March 40.
The bill to accelerate renewable energy development consists of four major directions. △Establishing a renewable energy deployment plan within the country in cooperation with local government heads, △Simplifying the approval process for renewable energy projects, △mobilizing areas where renewable energy development has already occurred, and △sharing the value of renewable energy projects with relevant regions. am. The key point is to increase production speed by simplifying the permitting process for renewable energy production facilities, and it also includes expanding the obligation to install solar panels on the roofs of outdoor parking lots of 4 m² or more and new or renovated non-residential buildings.
After the Russia-Ukraine incident, the French government is emphasizing the restoration of energy sovereignty and is showing its will to increase renewable energy production targets and accelerate production. Following President Macron's announcement of a renewable energy development plan in 2022, the French government has been working to flesh out 'la planification ecologique', a global vision to achieve carbon neutrality in 2050.
Last May, Prime Minister Elisabeth Born announced an increase in the carbon emissions reduction target by 5 from 2030% to 1990% compared to 40 (as of 50, France is at 2023%, and to achieve this, tons of carbon dioxide equivalent (MteCo25) must be reduced by 2. It was explained that it must be reduced from the standard 2022 million tons to 4 million tons. This is twice as much reduction over the next 8000 years as what was achieved over the past 2 years. To achieve this, compared to 7000, buildings will be reduced by 30% and energy will be reduced by 8%. %, and the manufacturing industry must reduce emissions by 2022%.
Afterwards, on June 6, the French Secretariat for Ecosystems and Planning (SGPE) presented specific guidelines for the goals announced by Prime Minister Elisabeth Born. First of all, in the case of solar power, the goal is to more than double the power generation rate by 12 to achieve a capacity of 2050 to 128 gigawatts (GW). According to the daily newspaper Le Monde, to achieve this, 160GW to 2023GW must be installed every year starting in 3.7. A total of 5.5GW was installed in 2022. In the case of offshore wind power, the target by 2.4 was raised from the existing 2050GW to 40GW. The only offshore wind power complex currently completed in France is the Saint-Nazaire complex in the Brittany region, and the goal is to build 45 units by 2050. In the case of nuclear power, the company is considering extending the lifespan of currently operating nuclear power plants by more than 50 years, and has re-announced its goal of commissioning 60 to 2050 EPR6 reactors by 14. The French government plans to announce the final details for implementing the 'Ecological Plan' in September 2.
Current status of solar panels and offshore wind power complexes
① Solar power
France is one of the countries with the best sunshine in Europe, but its solar power production is low compared to neighboring European countries. As of 2022, France's electricity production from solar power totaled 19.1TWh, a 30% increase from the previous year and equivalent to 4.2% of France's electricity consumption in the year. For reference, the proportion of solar panels compared to total strategic consumption in Germany and Italy amounts to 7% and 8%, respectively. As of the first quarter of 2023, France's solar power production was 1TWh, an increase of 3.6% compared to the same period last year, but its share in France's total power production in that quarter was only 13%.
French solar power complexes are mainly installed in southern France, including Nouvelle-Aquitaine, Occitanie, Auvergne-Rhône-Alpes, and Provence-Alpes-Côte d'Azur. (Provence-Alpes-Côte d'Azur) region accounted for 2023% of newly installed electricity in the first quarter of 1.
② Offshore wind power
France has the second-largest coast in Europe, but the status of offshore wind farm construction and development level is weak compared to neighboring countries such as the UK. As of December 2, France's wind power capacity reached a total of 2022GW, including 20.4GW of onshore wind power and 0.5GW of offshore wind power. France has supported the project through continuous competitive bidding since 20.9 with the goal of producing 2028GW of offshore wind power by 5.2. As France does not have its own large turbine manufacturer, it is believed that foreign companies such as GE are building factories in France. Currently, the Saint-Nazaire wind farm in western France is in operation after completion in 2011. 2022 6MW turbines have been established, and the annual power generation capacity of 80MW is targeted for the next 25 years.
implication
There are signs that France's decarbonized energy industry will accelerate with the government's active leadership. In the case of solar panels and offshore wind power, which the French government is focusing on, domestic facilities in France are not yet sufficient and continuous investment is expected in the future, so opportunities to advance into related fields are expected to increase. In particular, the French government has encouraged reshoring and friend-shoring to ensure supply chain stability, and has promoted investment by expanding customized incentives for each project, such as income tax reduction and social contribution reduction, in addition to the existing production tax reduction. In addition, the Green Industry Act was recently announced to promote manufacturing by leveraging eco-friendly industries. With the plan to transform the industrial environment in France in response to the crisis of climate change, when investing in the eco-friendly technology (rechargeable battery, heat pump, wind turbine, solar panel) industry designated by the EU in France, 2% of the investment amount is invested. It is a system that deducts between % and 25% of the tax amount. As the French government's investment support system is becoming more active, it is believed that it is time to review various ways to advance into the relevant industry.