COUNTRY PRESENTATION: FRANCE

COUNTRY PRESENTATION: FRANCE

Cedric Seguin Muñoz May 22, 2012

Geographical conditions

Source: http://solargis.info/free-solar-maps image

Economical conditions The government maintains a strong presence in some sectors,

particularly power, public transport, and defense industries.

With at least 75 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism.

Under President SARKOZY, Paris implemented austerity measures that eliminated tax credits and froze most government spending in an effort to bring the budget deficit under the 3% euro-zone ceiling by 2013 and to highlight France's commitment to fiscal discipline at a time of intense financial market scrutiny of euro-zone debt levels.

Socialist Francois HOLLANDE won the May 2012 presidential

election, after advocating pro-growth economic policies, as well as measures such as forcing banks to separate their investment and savings businesses, increasing taxes on bank profits, introducing a new top bracket on income taxes for people earning over $1.3 million a year, and hiring an additional 60,000 civil servants during his five-year term of office. Source:

https://www.cia.gov/

Economical data

Costs of capital WACC

Residential

WACC Other

segments

Debt Inflation average 5 years

Country risk rating

(Euler Hermes)

4.60% 8.60%2.80

% 1.6%Low risk-

AAGDP (purchasing power parity)

Public debt Unemployment rate

$2.214 trillion (2011 est.)

85.5% of GDP (2011 est.)

9.1% (2011 est.)

Source: http://www.epia.org/publications/epiapublications.html, https://www.cia.gov/, http://www.eulerhermes-aktuell.de/, http://www.inflation.eu/

https://www.cia.gov/library/publications/the-world-factbook/fields/2186.html



Energy sector policy France is the main country to use electricity of

nuclear origin as the dominant method of production (78% of French production in 2007).

In 2010:Nuclear: 407.9 TWhHydraulic: 68 TWhFossil-fired: 59.4 TWhWind: 9.5 TWhOther renewables: 5.5 TWhTotal: a production of 550.3 TWh in 2010 (data: RTE 20101) Domestic consumption in

2010: 488.1 TWh (source: RTE 2010)Source:

Wikipedia

Renewable energy policy Since 2007 and the Grenelle Environment, France sets up an

ambitious strategy for developing renewable energy in its territory.

Baseline in 2020 to reach the target of 23% renewable energy.

This is to produce 20 Mtoe of renewable energy and more than in 2006. For comparison, in 2006, 275.3 Mtoe was consumed in the territory of which 18.6 Mtoe from renewable sources.

New measures since 2010 like:The introduction of a tax credit for production using renewable energyThe purchase obligation for electricity produced with specific tariffs for each sector (wind, solar, biomass etc.)The simplification of administrative procedures for domestic projectsThe implementation of certification and labels for better identified technologiesThe establishment of specific regulations for photovoltaic ground ...

France is the leading European producer of renewable energy ahead of Sweden and Germany, with over 15% of total European production.

Source: http://www.developpement-durable.gouv.fr/

Solar policyObjective of 5400 MW installed in 2020. It is made the following assumptions:

• The solar thermal in 2020 represent 10% of the total installed capacity. The annual operating time is 1800h to the peak power of the installation. The first installations will be commissioned in 2012.

• PV systems with solar tracking represent 1/6 of the total power installed in 2020. The annual operating time is 1800h to the peak power of the installation.

• The rest of the installed capacity of photovoltaic systems is made without solar tracking. The annual operating time is 1100h to the peak power of the installation.

Source: http://www.developpement-durable.gouv.fr/

The sales prices of solar energy

The solar energy produced on the roof is measured and EDF is obliged to pay for it at 37.06 € cts / kWh guaranteed by a 20-year contract.

Revenues in the solar be exempt from tax for a facility with a capacity of less than 3kWc. In addition, the income is taxable.

You can receive a tax credit of 11% for the installation of solar panels. The maximum tax credit is limited to € 3,200 per kWp, or €16,000 for installation of a 5 kWp.

You can also benefit from a rate of 7% VAT for the supply of materials and labor required for installation.To do so requires that the construction of the house is more than 2 years.

Source: http://panneaux-solaires-photovoltaiques.evasol.fr/financementphotovoltaique.html

Size of electricity market

France is the 6th world market, with consumption equal to 488 TWh in 2010 (primary electricity).

This market, largely dominated by the national company EDF, is marked by a steady growth in consumption and the ongoing process of open competition required by the European Commission in 2007.

Source: Wikipedia

Importations and exportations

Exportations tothis country in 2010(en TWh)

Importations intothis country in 2010(en TWh)

Exportations tothis country in 2011(en TWh)

Importations intothis country in 2011(en TWh)

Germany 9,4 16,1 10,8 8,4

Belgium 3,9 4,8 7,9 2,1

UK 8,5 5,5 7,7 2,9

Spain 1,9 3,5 4,5 3,1 Italy 17,4 1,2 16,9 0,8 Switzerland 25,5 6,0 27,6 2,4

Total France 66,6 37,1 75,4 19,7

Net exportations 29,5 55,7

Source: Wikipedia

Productors Productors in France EDF (Électricité de France) CNR (Compagnie nationale du Rhône) SNET (Société nationale d'électricité et de thermique) SHEM (Société hydroélectrique du Midi) UEM (Usine d'électricité de Metz)

Foreign Productors Electrabel (Belgique) Endesa (Espagne) EGL (Suisse) Enel (Italie) Iberdrola (Espagne) E.ON (Allemagne) Source:

Wikipedia

73 suppliers Direct Énergie Poweo ÉS Énergies Strasbourg (Électricité de Strasbourg) Cargill International Enercoop Proxelia GDF Dolce Vita Alterna Lampiris Planète Oui GEG Grenoble Rhodia Energy Services (pour les consommateurs

industriels) Source: Wikipedia

Forecast of electricity prices

Source: http://www.epia.org/publications/epiapublications.html

Solar market Status and Outlook

Solar installationsFrance saw 1.5 GW of new systems connected

last year, mainly a result of installations done in 2010. Only less than 10% of this capacity was installed during 2011.

The extremely long grid connection process in France can take up to 18 months. The important FiT cuts and long grid connection lead times explain why new installations were at a poor level during 2011, whilst grid connections reached a record high of 1.5 GW in 2011.


European Market Split 2011


Global cumulative installed capacity


European PV market segmentation


Historical market data and outlook until 2016


Cumulative market data and outlook until 2016


Forecast for 2016 (source:EPIA)


Contribution to electricity demand


Regional distribution of PV


Solar companieshttp://www.enf.cn/database/sellers-france.html

161 Sellers

1.2.3. SOLAIRE

3i PLUS

A2Energie

ACTELIOS

ACTIVASUN

AE3000

AED

AER

AGIRENERGY

Agrimeer

Alternasol

Altus Energy

Amicus Salus

Apex BP Solar

20 PV Modules producers

AlternasolAuversunBatiSolarE.F.E. 66EurolightFONROCHE

France watts ILIOIMEX CGIPhotowatt

S'TileSenersun

Serrano Environnement

SILLIA énergieSNAsolarSolarezo

679 Installers

1001 Soleils2APC2ER2ES3A Energies3jSystem

3S Sud System Solaire3synergies46 Idée PlusA E G Aquitaine

A l'Nrj Sol'Air A-E-NA.E.R SudA.T.D.A2CSA2EnergieAB2C

ABC Energie Solaire

http://www.enf.cn/database/installers-france.html

http://www.enf.cn/database/sellers-france.html

http://www.enf.cn/database/sellers-france.html

http://www.enf.cn/pv/1190s.html















http://www.enf.cn/pv/15826c.html

















http://www.enf.cn/pv/21641d.html
























Caps of policy schemesThe new support framework in place since March 2011

aims to limit the annual market size to 500 MW: It allows systems of up to 100 kW to benefit from a remunerative FiTlevel.

For systems larger than that the FiT is extremely low (slightly above 0.10 €/kWh).

Alternatively larger projects can apply to calls for tenders: The results will not be known until 2012, shifting the market development by 6 months to more than 1 year and the connection of systems even later.


Solar Grid Parity Mapping Project - Data Collection Template

Geographical Position

Energy production

data

Latittude Longitude Country CityAnnual Average

Radiation (kWh/m2/d)

48.85 2.35 FRANCE Paris 3.13 43.29 5.36 FRANCE Marseille 4.34 45.75 4.84 FRANCE Lyon 3.53 44.83 -0.57 FRANCE Bordeaux 3.65 45.69 -0.32 FRANCE Cognac 3.67 50.63 3.06 FRANCE Lille 2.91 48.39 -4.48 FRANCE Brest 3.10 41.92 8.73 FRANCE Ajaccio 4.75

http://eosweb.larc.nasa.gov/

4 principal different irradiation zones

http://sycomoreen.free.fr/docs_multimedia/Resume_PV_eng.pdf

Residential4 €/Wp

Energy cost:12.11 cts/kWh

http://www.photovoltaique.info/+Les-Etats-Generaux-du-Solaire+.html

http://fr.edf.com/

Industrial2.5 €/Wp

Energy cost:8.29 cts/kWhhttp://fr.edf.com/


Utilities2 €/Wp

Energy cost:6.39 cts/kWhhttp://fr.edf.com/


Conclusion Clear FiT evolution in 2012 for systems up to 100

kW, however non-transparent and complex tendering scheme for larger systems.

Strong adverse lobbying from conventional stakeholders.

Heavy and slow administrative processes still in place.

Another obligation that new buildings be self-sufficient in terms of energy consumption by 2020 also adds some hope for a future re-development of PV in France.

Grid parity should be aimed in 2016 for the south of the country and 2020 for the north.

Hope for the french solar industry? The new president Francois Hollande has the last word…

Francois Hollande, president, supports solar energy and promises a rebound for this renewable energy:

"I, President of the Republic, I will not vilify solar energy as my predecessor was able to do throughout the past months, by refraining himself to speak well of it under the influence of some lobbies.

I President, I pledge to reduce the nuclear share of 75 to 50% in 2025 and to make the effort to make renewable energy and solar energy considerably developed.

Today, the anaphora is not anymore conceptual, it has become a reality. French solar industry will recover hope ... "

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COUNTRY PRESENTATION: FRANCE