Benjamin BOILLOT Research Engineer benjamin.boillot@cea.fr 1
Contents PV MARKET French context : Government policy and strategy Market and incentives BIPV policy THERMAL SOLAR MARKET 2
French solar irradiation 3
Changing era : title of a well attended Conference and Exhibition on energy efficiency and renewables, Paris, November 2008 Today s electricity production in France: Nuclear 80 % Hydroelectricity 15 % Other 5 % 93 GW peak power demand in January 2010 Going from centralized to decentralized Everybody can be an actor of CO2-free energy production CEA changed its name : alternative energies added 4
French energy policy context : decisions favourable to RES Energy framework Law (2005) and Grenelle of Environment law (2009) Renewables will contribute to energy mix ADEME Agency is in charge of implementing government policy Regional and departmental Councils are active in promotion and development National objectives : 5 400 MW of PV installed by 2020 (1 % of consumption) 120 million m² potential area of public sector buildings to be equipped with PV 5
Government strategy for photovoltaics focus upon building applications make PV a common place construction element of every building in the long term In relation to positive energy building concept allow deployment through stimulation measures purchase tariffs and tax credits 6
The French market : 3 to 400 MW grid-connected so far A very difficult context until 2006, A take-off in 2008, 269 MW 25 MW 69 MW 1000 MW expected in 2010 More than 2000 MW in applications 7
Evolution of type of applications 1992-2009 100% 80% Grid-connected Off-grid Source ADEME, IEA PVPS, AC 60% 40% 20% 0% 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Percentages of grid-connected and off-grid PV power in France 8
Feed-in tariffs to promote PV applications (1/2) Table 1 Photovoltaic purchase tariffs 2010-09-01 (continental France) Application category BASE: Any application (including ground-based PV plants) Feed-in tariff (EUR/kWh) 0,276 South of France 0,331 North of France BIPV Simplified integration 0,370 BIPV existing large area industrial/agricultural buildings BIPV private dwellings P < 3 kw P > 3 kw, homes, schools, hospitals 0,440 0,580 0,510 Price of electricity for ordinary dweller in France: 0,13 EUR/kWh (with VAT) 9
Feed-in tariffs to promote PV applications (2/2) contract established for 20 years by ERDF. Tariff adjusted annually for inflation from 2012-01-01 tariffs for new projects will decrease 10 % per year financed through CSPE. A financial contribution paid by electricity consumers and collected by EDF 0,45 eurocent per kwh consumed 10
Tax credits to promote residential PV < 3 kw Private income tax payers are untitled to tax credit and feed-in tariffs 25 % of equipment cost tax deductible (installation labour costs not taken into account) (max 16 000 EUR for a couple) Low VAT on equipment: 5,5 % (instead of 19,6 %) No VAT and no income tax on PV electricity sales by private PV owner (< 3 kw) Some Regional councils may add other type of support NOTE - For enterprises there is an accelerated depreciation of investment 11
Impact of market stimulation measures on annual installation volume (MW per year) 400 350 300 250 200 150 2004 2005 2006 2007 2008 2009 2010 100 50 0 2004 2005 2006 2007 2008 2009 2010 Introduction base PV tariff + tax credit 40 % + tax credit 50 % + BIPV BIPV fully applies Source: ADEME, AC 12
Impact of market stimulation measures in 2010 4000 file d'attente de raccordement (MW) installations raccordées (MW) 3550 3500 3000 2536 3131 2812 2500 2000 1500 1000 500 197 271 422 614 0 31 Décembre 2009 31 mars 2010 30 juin 2010 30 septembre 2010 Source: ADEME, AC 13
The breakdown per size Most installations < 3kW (tax credits) Few large power plants > 3MW 80000 79302 70000 60000 50000 Nombre 40000 30000 20000 17528 10000 402 3775 1930 2256 870 340 17 31 18 5 2 3 1 0 1 2 3 6 18 36 120 250 500 1000 3000 5000 7500 10000 12000 Puissance kw 14
The breakdown per size Most installations < 3kW (tax credits) Few large power plants > 3MW 15
A regional breakdown 16
Building Integrated Photovoltaics (BIPV) a BIPV module is a construction element which produces electricity and carries out another function a BIPV element will become cheaper than a standard PV module on top of existing roof innovation is on-going to develop new products: 80 BIPV products available on French market 55 products are, so far, assessed suitable for use in building by CSTB (see below) 17
BIPV or not BIPV? That s the question Newly formed CEIAB Committee (MEEDDM, ADEME, CSTB) Committee for the assessment of access to BIPV tariffs List of products available: www.ceiab-pv.fr 18
BIPV or BIPV Simplified? BIPV Simplified : 36 ct /KWh BIPV : 44 To 58 ct /kwh 19
BIPV tariff applies Tenesol, Toulouse 20
BIPV tariff applies 21
BIPV simplified tariff applies Enclosed structure PV System on a sport centre in Challes-les-Eaux (Savoie Department) 203 kw (Courtesy: Edisun Power) 22
Same approach for solar thermal and PV 23
PV in the built environment triggers creativity Base tariff applies Parking lot of a shopping centre: 1,15 MW, Saint-Aunès (concept Sunvie.eu) 24
Positive effects of Government policy Since 2006, in addition to historical actors new operators are emerging From 3 to 10 PV module manufacturers From 10 to 150 PV companies Jobs increased to 8 500 (+ 80 %/ 2008) Utilities EDF ENR, Poweo, Solaire Direct, Juwi, Séchilienne Sidec, etc. are operating large warehouse roofs and ground-based PV plants 60 MW of ground based PV plant so far 4,2 MW: Solaire Direct Source: ADEME national survey report for IEA PVPS www.iea-pvps.org 25
Actors of photovoltaics in France (1/2) Institutional Ministry of Ecology, Energy, Sustainable development and the Sea (MEEDDM) ADEME Agency, ANR Agency, OSEO Agency Regional councils and Departmental councils (local authorities) Industry Manufacturers of PV materials, PV components, PV systems, equipments Developers, implementers, installers, roofers, utilities, Professional associations Research and technological development Certification bodies and testing labs Training centres 26
The French industrial companies involved in PV : 8500 jobs, 150 enterprises, 5000 installers : Silicon Ingots Wafers Cells Modules Systems Installation Photowatt Ferropem Vesuvius ECM FEE Solems PV Alliance Apex BP Solar Cyberstar Adixen Carbonne Lorraine Air Liquide : 50% Emix Some are big players worldwide Arkema : 30% Total GDF Suez EDF Tenesol Solaire Direct Sillia Energie Soprema Sun Land 21 Clipsol Solarezo Urbasolar First Solar Sunnco Fontroche St Gobain : 30% Schneider 27
Quality Policy CSTB Technical Assessment Certificate for PV elements QualiPV label for PV installers Consuel safety conformity control Useful references: www.photovoltaique.info www.outilssolaires.com 28
Partners of quality policy for PV applications in buildings ADEME implements the government Environment policy in energy efficiency and Renewables including Photovoltaics CSTB brings its know-how in quality assessment to assist the construction sector CERTISOLIS (CSTB, LNE) and BV-LCIE test and certify PV modules and components INES (Institute for solar energy) performs component testing and R&D professional associations SER/SOLER, Quali PV, etc. are partners of quality policy 29
CSTB s Technical Assessment (ATec) and Pass Innovation Technical assessment (ATec) and Pass innovation (initial short term evaluation before proper ATec) assess suitability of PV modules for use in buildings voluntary procedure. Validity is time limited these certificates give confidence to building sector, users and insurance companies (in relation to decennial guarantee) 8 PV ATec and 47 PV Pass Innovation issued (as of September 2010) Some products are developed in partnership with Chinese PV cells/laminates (Suntech, Trina, Yingli, ) List available: www.cstb.fr 30
QUALI PV Label QUALI PV: quality label for PV installers A branch initiative, provided by SER professional Association Qualiphoton platform for training technicians Commitment of installers to respect the 10-point Charter More than 5 600 installation companies have received the label (as of March 2010) www.quali-enr.org/qualipv 31
Conclusion on PV Political support essential to promote energy efficiency and renewable energy sources Government policy has: - Created a dynamic market; - Structured industrial and professional offerings; - Created skilled jobs. The recent readjustments of tariffs and tax measures could create a crisis of investor confidence BIPV applications Make PV modules a standard construction element Contribute to higher environmental quality buildings Stimulate innovation in PV industry and building sector CSTB s PV Technical Assessment Certificate (ATec) is recommended to reach building sector and give confidence to insurance companies Quality of components, PV systems and installation a prerequisite to sustainable and successful business. 32
Thermal Solar in Europe 5 000 000 AT BE BG CH Surface de capteurs installés annuellement (m²) 4 000 000 3 000 000 2 000 000 1 000 000 CY CZ DE DK EE ES FI FR GR HU IE IT LT LU LV MT NL PL PT RO SE 0 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 33 SI SK UK
French Thermal Solar Market 350000 245000 300000 CESI SSC Collectif 210000 Surface de capteurs (m²) 250000 200000 150000 100000 175000 140000 105000 70000 Collector area (kw) 50000 35000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 0 34
French Thermal Solar Market Market Increase : x 4 between 2000 and 2008 x 2 between 2005 and 2008 But Decrease in France and Germany in 2009 PV Market? International Crisis? In 2010 in France, it s not good 35
French Thermal Solar Market Perspectives 4 3.5 Marché annuel (Million de m²) 3 2.5 2 1.5 1 Collectif Individuel 0.5 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 36
Thank you for your attention 37