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1 ENER IURE PROJECT PHASE III ANALYSIS OF THE LEGISLATION REGARDING RENEWABLE ENERGY SOURCES IN THE E.U. MEMBER STATES REPORT CONCERNING IN FRANCE E L E C T R I C I T Y 1
2 Report concerning electricity measures in France 2
3 1- Introduction The French energy policy historically focussed on security of supply ( ), but since it has been enriched with new strategies : rational use of energy and promotion of renewable energy sources are the key aspects of the new orientations implemented since early 2000's. Energy policy falls within the juridiction of the Department of the State Secretary of Industry (Secrétariat d'etat à l'industrie / Ministère de l'economie et des Finances).. The DGEMP (Direction Générale de l' Energie et des Matières Premières) has the mission within the State Secretary of Industry to define and implement the French energy policy and secure the primary energy supply in France. Specifically, its policy is oriented along the following axes : - gradual opening of the energy markets, according to the EU calendar (as a result of last EU meeting on energy issues in Barcelona (2002), France agreed to open up its electricity market completely (100 %) by 2004 for industrial and commercial energy end-users and later for individual consumers). - follow-up of key energy sectors (nuclear energy, oil and gas industries in particular). - promotion of the rational use of energy (including the demand side management of electricity) and promotion of renewable energy sources (implemented by ADEME). The Climate Change Programme falls within the juridiction of the Ministry of Environment and Regional Planning (Ministère de l'environnement et de l'aménagement du Territoire- MATE). A French national plan has been agreed and set up : The National Plan for Improved Energy Efficiency (PNAEE : Plan national pour l'amélioration de l'efficacité énergétique) whose aim is to ensure the conformity of national energy policy with the climate change mitigation policy (stabilised CO2 emissions by 2010 at the 1990 level). 3
4 2- New electricity legislation in France The basic electricity law is the law : "Loi n relative à la modernisation et au développement du service public de l'électricité" issued and published by 10 february It is dealing with the new organisation to the electricity market in France in compliance with the EU Directive on the electricity market adopted by 1996 (the law in French can be dowloaded from the web site : or ( direction génerale de l'énergie et des matières premières / electricité) or The basic principles are : - specific bodies in charge of the regulatory aspects ( "Commission de Régulation du Marché Electrique" CRE),of the transport and distribution aspects (grids operators have been set up : the RTE or " Réseau de transport de l'électricité" for high voltage grid manangement (above 63 kv) and the ARD or "Accès au réseau de distribution" to operate the distribution grid (typically 20 kv), - the public service to ensure the same quality of service on the French territory at the same tariffs for individuals; specific funds will be set up the cover the extracost associated with the pubic service obligations ("Fonds du service public de la production d'électricité" which is operated by the French financial institution "Caisse des dépôts et Consignations". - a special tariff scheme is designed to offer a guaranteed fixed tariff to electricity generators under specific conditions (this is the principle "obligation d'achat" or purchase obligation which is implemented within the limits of a maximum power per project which is defined by law "a decree". This is corresponding to the French "feed in law" adopted in other European countries. The decision was made to limit this power by project to 12 MW whatever the technology concerned. - a long term investment scheme (" Programmation pluriannuelle des investissments or PPI" on the electricity market), defined at the Ministry level (in charge of the energy policy) is required by law (electricity law) on the electricity market and is submitted to the Parliament in order to have an investment frame (2010) which is designed to launch call for tenders open to the private sector if the targets are not met (capacity increase expected). The first draft document issued by an "ad hoc working group" have been submitted to the Government by march A national directive ("arrêté") is under preparation (draft circulated in april 2002 and will give the guidelines for future capacity investments by 2010). The objectives of this future directive are : - bioenergy (electricity generation): 400 to 1500 MW by wind energy: to MW - geothermal energy: 20 to 120 MW - small hydro: to MW 4
5 3- Specific fixed tariff adopted by law corresponding to the French "feed-in law". Different official documents have been prepared and issued corresponding to fixed tariff under the purchase obligation principle defined by law ("obligation d'achat") for each renewable energy sources including CHP and electricity generation fom wastes. These official documents called " arrêtés tarifaires" which are national directive have been enforced (legal documents issued in 2001/2002. The basic decrees are the following ones:. Decree n december 2000 which is focusing on the maximum power per project to obtain the benefice of the purchase obligation and tariff by the national utility for the electricity generated from RES.. Decree n may 2001 which is defining the conditions to get the benefice of the feed-in tariffs for the electricity generation of private investors. The tariffs are defined on the basis of specific "arrêtés" which are listed below. - arrêté du X mai 2002 fixant les conditions d'achat de l'électricité produite à partir des installations utilisant l'énergie en provenance de la biomasse ("feed-in tariff for electricity generated from bioenergy" feedstocks under the "purchase agreement" principle and with a power limit of 12 MW): this directive will be published in the short term (0.07 ceur / kwh of electricity generated). - arrêté du 13 mars 2002 fixant les conditions d'achat de l'électricité produite à partir de la géothermie ("feed-in tariff for electricity generated from geothermal ressources" with a power limit of 12 MW) tariff:. 7,62 ceur / kwh (cents Euros) for France (continental area). 7,93 ceur / kwh for the overseas regions (Guadeloupe in particular) - arrêté du 13 mars 2002 fixant les conditions d'achat de l'électricité produite à partir du solaire ("feed-in tariff for electricity generated from solar energy photovoltaïcs") tariff: EUR / kwh for France (continental area) EUR / kwhfor France (overseas including Corsica). - arrêté du 3 octobre 2001 fixant les conditions d'achat de l'électricité produite à partir du biogaz ("feed-in tariff for elcetricity generated from biogas sources"). tariff: from 4.5 ceur / kwh (unit power above the 6 MW level) to 5.72 ceur / kwh under the 2 MW level. Other parameters are taken into account (global energy efficiency, degree of availability). - arrêté du 2 octobre 2001 fixant les conditions d'achat de l'électricité produite à partir des déchets ménagers ("feed -in tariff for electricity generated from municipal solid 5
6 wastes- MSW") tariff: from 1.74 ceur / kwh (summer) to 3.72 ceur /kwh (winter) in France (continental and Corsica) from 3.05 ceur /kwh to 3.72 ceur/kwh in the overseas. - arrêté du 31 juillet 2001 fixant les conditions d'achat de l'électricité produite à partir de la cogénération ("feed-in tariff for electricity generated from cogen or CHP power plants") tariff: 0.31 to 0.58 ceur / kwh (a complex tariff has been designed). - arrêté du 25 juin 2001 fixant les conditions d'achat de l'électricité produite à partir de l'hydraulique ("feed-in tariff for electricity generated from small hydro power plants") tariff: option 1: 6.10 ceur / kwh (under 500 kva) and 5.49 ceur / kwh (above 500 kva) option 2: 8.42 ceur /kwh (under 500 kva) and 7.58 ceur / kwh (above 500 kva) in winter 4.45 ceur/ kwh (under 500 kva and 4.01 ceur / kwh (above) in summer. According to the quality of supply (quality supply factor), a more attractive tariff will be offered based on a "premium", additionnal to the tariff listed here. - arrêté du 8 juin 2001 fixant les conditions d'achat de l'électricité produite à partir de l'énergie éolienne ("feed-in tariff for electricity generated from wind energy power plants") tariff: 8.38 ceur / kwh (5 first years) and then from 3.05 (above 3600 h) to 8.38 (under 2000 h) the following ten years In France (continental area), thus according to the quality of sites. The tariff structure is different in the overseas: 9.15 ceu /kwh the first 5 years and then from 4.57 ceur /kwh (above 3300 h) to 9.15 CEUR /kwh (under 2050 h). 6
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