Doing business in France - Energy

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Doing business in France? We can help Energy in France Conventional: Natural gas accounts for less than 1.5 per cent of the total energy mix in France. It amounted to 6.1 TWh in 2012, which represents a further decrease from 2011 levels. While the gas market opened to competition in July 2007, GDF remains by far the main supplier with 90 per cent of the market share (figures accurate as of June 2012). Total, through Total E&P France, operates 93 per cent of natural gas production in France. In 2011, coal accounted for 3.7 per cent of the total energy mix (9.8 Mtoe), representing a 14.2 per cent decrease compared to 2010. This reduction is due mainly to a decreased dependence of coal in power plants. Coal today contributes to 2.5 per cent of the total production of electricity with nearly 13Twh in 2011, well below the 2010 19Twh levels. The consumption of oil and petroleum products in the energy mix, whether in refineries or power stations, also dropped 1.6 per cent this year. How To Contact Us Defense, Security & Energy Team Xavier Owen Tel: +33 (0)1 44 51 32 80 Amélie Rives Tel: + 33 (0)1 44 51 34 04 Defense UK Trade & Investment British Embassy 35 rue du Faubourg Saint-Honoré 75383 Paris CEDEX 08, France www.gov.uk/ukti France’s energy production consists at present of 75 per cent nuclear energy, 8 per cent conventional (oil, gas, coal, etc), and 16 per cent renewable (figures accurate as of January 2014).

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Transcript of Doing business in France - Energy

Page 1: Doing business in France - Energy

Doing business in France?We can help

Energy in FranceConventional:

Natural gas accounts for less than 1.5 per cent of the total energy mix in France. It amounted to 6.1 TWh in 2012, which represents a further decrease from 2011 levels.

While the gas market opened to competition in July 2007, GDF remains by far the main supplier with 90 per cent of the market share (figures accurate as of June 2012). Total, through Total E&P France, operates 93 per cent of natural gas production in France.

In 2011, coal accounted for 3.7 per cent of the total energy mix (9.8 Mtoe), representing a 14.2 per cent decrease compared to 2010. This reduction is due mainly to a decreased dependence of coal in power plants. Coal today contributes to 2.5 per cent of the total production of electricity with nearly 13Twh in 2011, well below the 2010 19Twh levels. The consumption of oil and petroleum products in the energy mix, whether in refineries or power stations, also dropped 1.6 per cent this year.

How To Contact Us Defense, Security & Energy TeamXavier Owen Tel: +33 (0)1 44 51 32 80Amélie RivesTel: + 33 (0)1 44 51 34 04Defense

UK Trade & InvestmentBritish Embassy35 rue du Faubourg Saint-Honoré75383 Paris CEDEX 08, Francewww.gov.uk/ukti

France’s energy production consists at present of 75 per cent nuclear energy, 8 per cent conventional (oil, gas, coal, etc), and 16 per cent renewable (figures accurate as of January 2014).

Page 2: Doing business in France - Energy

How To Contact Us Defense, Security & Energy TeamXavier Owen Tel: +33 (0)1 44 51 32 80Amélie RivesTel: + 33 (0)1 44 51 34 04Defense

UK Trade & InvestmentBritish Embassy35 rue du Faubourg Saint-Honoré75383 Paris CEDEX 08, Francewww.gov.uk/ukti

Nuclear:

EDF - the country’s main electricity generation and distribution company — manages the country’s 58 nuclear power plants for total production of 410 billion kWh a year.

Following the Fukushima accident, ASN released a report announcing a sweeping safety upgrade to all the country’s reactors. A partial phase out of nuclear (with a shift to renewable) is expected by 2025 with Fessenheim, near the German border, thought to be the first power station to close.

Significant steps have also been taken to increase Franco-British industrial cooperation with the creation of the AIFEN (Association of French Nuclear Industry Exporters, equivalent to the NIA) in November 2013 which represents over 300 French companies, both big players and SMEs.

EDF created the “Partenariat France Monde Electricité”, an association of French companies qualified for their nuclear activities, to facilitate EDF’s entry into the supply chain of their international projects in partnership with local companies.

The NIA also created the “UK Nuclear Supply Chain SME Partnership” to maximise opportunities for SMEs in the UK new build supply chain, and is keen to encourage partnerships with French companies. A MOU between the NIA and the PFME is expected to be signed early 2014.

Renewables:

In November 2008 the Environment ministry launched the «Grenelle Environnement», two packages of environmental protection laws embodied in an action plan of 50 operational measures stretching across the Renewables sector.

The aim is to generate an extra 20Mtep from renewable energy by 2020 with renewables accounting for at least 23 per cent of total production by 2020 and to reduce the share of nuclear to 50 per cent of electricity production.

Wind: After the UK, France is Europe’s second largest potential source of wind power and comprises many large and capable companies (EDF EN, AREVA, Alstom and DCNS to name a few).

In 2011, France produced 11.9 TWh from wind power (2.5 per cent of the total production of electricity).

In July 2011, the government launched a tender for the construction of 5 offshore wind farms totaling 6000MW.

The EDF consortium Eolien Maritime France won three of these (Fécamp, Courseulles-sur-Mer, and Saint-Nazaire) and Ailes Marines, the Iberdrola-led consortium of Areva, Nass&Wind and EoleRes won the site off Brittany at Saint-Brieuc.

Le Tréport was not awarded and a second tender was subsequently released for 1GW in January 2012 and was for the allocation of new development around Le Tréport and Noirmoutier.

A 3rd round (for 3GW) is expected to be released in 2014. Public authorities support the wind power sector through a number of incentives aimed at boosting its development such as feed-in tariffs, tax credit, and attractive financial measures.

Page 3: Doing business in France - Energy

How To Contact Us Defense, Security & Energy TeamXavier Owen Tel: +33 (0)1 44 51 32 80Amélie RivesTel: + 33 (0)1 44 51 34 04Defense

UK Trade & InvestmentBritish Embassy35 rue du Faubourg Saint-Honoré75383 Paris CEDEX 08, Francewww.gov.uk/ukti

Solar: France is the 5th potential source of solar power in Europe and a leader in terms of photovoltaic power capacity, with 2643 MW connected to the grid in 2011.

Hydro: France relies heavily on hydro-generated energy. In 2011 this sector accounted for 12 to 14 per cent of the total production of electricity and generated approximately 69 TWh per year, making it the second source of electricity after nuclear power. The installed capacity currently represents 25 400 MW.

France has a very mature and long established hydro-electric industry. Both large multinational groups and SMEs operate in this sector and cover all aspects, from hydraulics to civil and electrical engineering and environmental sciences.

Marine: The tidal potential stands between 2.5 and 3.5 GW while the wave turbine potential stands between 10 and 15 GW. The marine industry is mature and well established, featuring both large groups and SMEs, as well as industrial clusters in key regions.

In September 2013 the French government launched its official procedure through which companies can register their interest to be involved in future pilot tidal power farms. This should pave the way for 3 to 4 farms of 5 to 10 tidal turbines to be erected in Le Raz Blanchard (Normandy) and Fromveur (Brittany) with the objective to reach 500 MW installed capacity by 2020.

Bio-energies: In a country with the largest forest area in Western Europe, biomass stands as the first source of renewable energy. Biomass accounts for 63 per cent of the renewable energy produced in France.

Wood accounts for 46 per cent of this mix (10.1 Mtoe), biofuels for 11 per cent (2,3 Mtoe), renewable urban waste for 6 per cent 1,2) and biogas and crops residues for 0,6 Mtoe.

The total energy produced by biomass only represents 9,5 MToe today but this figure could reach up to 17,9 MToe in 2020 should the Grenelle objectives be met.

Trade Fairs & Events THÉTISWhere: Cherbourg When: 9-10 April 2014 (Annual)www.thetis-emr.com

SEATECHWEEKWhere: Brest When: 13-17 October 2014www.seatechweek.com

WORLD NUCLEAR EXHIBTIONWhere: Le Bourget, Paris When: 14-16 October 2014www.world-nuclear-exhibition.com

Trade Associations SER (Syndicat des Energies Renouvelables): www.enr.fr

ADEME (Agence de l’Environnement et de la maîtrise de l’énergie): www.ademe.fr

FEE (France Energie Eolienne): fee.asso.fr

FRANCE HYDRO ELECTRICITE: www.france-hydro-electricite.fr

UNION FRANCAISE DE L’ELECTRICITE: www.ufe-electricite.fr

ASSOCIATION FRANCIASE DU GAZ: www.afgaz.fr