Energía

Les énergies renouvelables au cœur du PPE 3

Posted on:2 February 2024

PPE 3: All low-carbon energy production sectors will be involved

As part of the work on the French Energy-Climate Strategy, the objectives of the next Pluriannual Energy Program, the third, known as PPE 3, were unveiled for consultation last November.

+34%

La production d’électricité décarbonée devrait atteindre au moins 640 TWh d’ici 2035, par rapport à 2021.

Sources: Ministry of Energy Transition, RTE

Two main points emerge. The first is that all decarbonized energy production sectors will be called upon to contribute. Firstly, decarbonized electricity (nuclear and renewable energies), directly linked to the growing electrification of uses. Non-electricity sources (renewable heat, biofuels, etc.) will also make their contribution to decarbonizing the country.

Secondly, the objectives are ambitious. The aim is to accelerate the development of most decarbonized energy production sectors.

Triple la production d’électricité renouvelable d’ici 2035…

According to projections by the French Ministry of Energy Transition, nearly 200 TWh of additional renewable electricity (compared with 2022) will be needed by 2035, i.e. a threefold increase. This implies a sharp acceleration in the development of the main production sectors.

Targets for installed capacity in renewable electrical energy

Source: French Ministry of Energy Transition

Photovoltaics is the sector with the highest ambitions. The PPE 3 could see a deployment rate of at least 5.5 GW per year, with a target of 7.5 GW per year. This represents a sharp acceleration, since in 2022, installed capacity amounted to 2.4 GW. The government hopes that this development will be balanced between ground-mounted farms, large-scale rooftops, and residential applications. Agrivoltaics (photovoltaic installations on working agricultural plots) is also envisaged, with the development of an appropriate regulatory framework. Incentives for self-consumption, both for businesses and the residential sector, will be stepped up.

For onshore wind power, the aim is to maintain the deployment rate at around 1.5 GW per year. However, a better territorial distribution is expected. On the other hand, the PPE 3 should propose a sharp acceleration in the development of offshore wind power. Given the lead times for commissioning offshore wind farms, the greatest effort will be made between 2030 and 2035. An additional 10 GW should be allocated between now and 2025 via calls for tender to meet the target. One of the key issues set out in the draft PPE 3 is planning. The government wants to implement comprehensive planning for the different maritime façades.

Lastly, installed hydroelectric capacity is set to increase slightly, mainly on existing facilities, as the potential for new infrastructure is limited. One of the measures under consideration is to encourage the renovation of small hydroelectric plants.

I want to reduce my energy consumption over the long term

…supporting the country’s industrialization

For the government, the development of decarbonized energy production is an opportunity to boost the country’s industrial capacity by localizing or relocating the production of equipment necessary for the energy transition. Sectors identified include solar power (especially photovoltaic panel manufacturing), wind power (manufacturing various wind turbine components), heat pumps, and electricity networks.

The offshore wind pact

March 2022, the French government and the offshore wind energy industry signed a pact with mutual commitments. In particular, the French government has announced a target of 18 GW by 2035, which is included in the draft PPE 3. For its part, the industry has pledged to invest more than 40 billion euros over 15 years, and to achieve a local content of 50% calculated on the share of costs for each project.

The approach should take the form of an industry agreement, similar to that for offshore wind power, leveraging the opportunities provided by the Net-Zero Industry Act. This European regulation, implemented in 2023, aims to facilitate and boost the growth of a European energy transition industry, particularly through calls for proposals to access financial support mechanisms. The France 2030 plan will also be utilized to promote innovation and structure industrial sectors.

Addressing the supply of strategic metals (such as lithium, cobalt, rare earths, copper, etc.) necessary for producing energy transition equipment will be a focus of PPE 3. The objective is to manage the entire value chain, from extraction to recycling. Various tools will be employed in these areas, including the France 2030 Critical Metals call for projects and the green industries tax credit. An exploration campaign will be initiated in 2024 to evaluate the mineral resources in our subsoil.

Lastly, training is a key component. Collaboration between the Government, Regions, and industries will be essential to identify needs and establish a framework for skills development.

Double renewable heat consumption

Renewable heat production targets

Source: French Ministry of Energy Transition

The PPE 3 forecasts a significant increase in heat consumption from various production sources. Biomass, heat pumps, and biogas are expected to drive the growth in renewable heat production. Geothermal energy, solar thermal energy, and the recovery of waste heat from heating networks will also play a role.

In addition to these developments, heating and cooling networks are expected to expand significantly. The government aims to connect an additional 4.5 to 5.2 million homes by 2035 (compared to less than 1.3 million in 2020). Moreover, a larger share of their energy production will need to come from renewable sources (80% by 2035, equivalent to 90 TWh, compared to just over 60% currently, around 20 TWh).

Special attention will also be given to the recovery of industrial and tertiary waste heat. The PPE 3 plans to mandate a study of the recovery potential for all existing industrial units over 10 MW and new ones over 5 MW.

I want to decarbonize my industry

+225 million euros

Increase the Heat Fund budget to €820 million by 2024.

Source: French Ministry of Energy Transition

Three existing support schemes are designed to help achieve these objectives. For private customers, there is MaPrimeRénov’, dedicated to financing energy renovation projects. The Fonds chaleur (heat fund) finances renewable heat production projects in various sectors (collective housing, tertiary sector, agriculture and industry). By way of example, a biomass-based project in the industrial sector with a heat output of 1.2 to 12 GWh per year may be eligible for assistance from the Heat Fund.

Finally, the decarbonization component of the France 2030 plan can be mobilized by the industrial sector in the field of renewable heat.

Passer des biocarburants avancés aux carburants synthétiques

PPE 3 could establish a two-stage roadmap. In the short term, the objective is to expand the production of advanced biofuels, made from non-food competing resources (residues, waste, or by-products). These advanced biofuels will complement first-generation biofuels produced from agricultural resources suitable for food consumption.

In the longer term, the electrification of light mobility will facilitate its decarbonization. For heavy mobility (air transport, shipping, fishing, etc.), biofuels and synthetic fuels (e-gas oil, e-kerosene, etc.) as well as hydrogen are the solutions being considered. Hydrogen will be the focus of our upcoming article, exploring France’s hydrogen strategy in depth.

I would like more information