Minutes of Annual Conference - ufe-electricite.frufe-electricite.fr/IMG/pdf/colloque-ufe-va-bd-1.pdf · Minutes of Annual Conference 26 May 2009 ... Taking the opportunity of its

Minutes of Annual Conference

26 May 2009

The Climate Challenge, New Issues in Electricity

The role of electricity in fi ghting climate change

Under the Eminent Patronage of

President Nicolas SARKOZY

and

Jean-Louis BORLOOState Minister and Energy Minister

With the support of

Luc CHATELGovernment Spoke Man

Secretary of State Responsible for Industry and Consumers

U n i o n F r a n ç a i s e d e l ' É l e c t r i c i t é

Conception&Printing: Murcar Graphique - cover: Fotolia, inside photos: Vincent Krieger - UFE © 2009

Opening Speach .....................................................................................................................................4Robert DURDILLY

Chairman, UFE

Round Table: Vision 2020.......................................................................................................................5

Presentation ..........................................................................................................................................6Charles BEIGBEDER

Chairman, Poweo

An NGO’s Perspective ............................................................................................................................7Alain GRANDJEAN

Member of the Strategic Committee, Fondation Nicolas Hulot for Nature and Man

Presentation ..........................................................................................................................................9Pierre GADONNEIX

Chairman, EDF

Round Table: Electricity, A Growth Driver for Industry ........................................................................10

Presentation ..........................................................................................................................................13Dominique MAILLARD

Chairman, RTE

Presentation ..........................................................................................................................................14Luc POYER

Chairman of the Executive Board, E.ON France

Round Table: Growth Drivers in Transport ...........................................................................................15

Presentation ..........................................................................................................................................18Jean-François CIRELLI

Executive Vice President, GDF SUEZ

Round Table: Electricity, A Growth Driver in the Building Industry .....................................................19

Presentation ..........................................................................................................................................21Michel FRANCONY

Chairman of the Executive Board, ERDF

Round Table: Amplifying France’s CO2 Advantage ...............................................................................22

Round Table: The Place of France in Green-Tech ................................................................................25

Round Table: Together to Attain the 3x 20 Targets ..............................................................................27

Green Growth in France’s Offer ............................................................................................................29Laurence PARISOT

Chairperson, MEDEF

The Climate Challenge

New Issues in Electricity

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4 // UFE - The Climate Challenge, New Issues in Electricity

Today, the carbon balance of France’s electricity system is extremely positive.

The overall CO2 content per electrical kWh in France is on the order of 65 g/kWh, as compared

to 372 g/kWh on average across the European Union, or nearly six times less than the European average.

This outcome is the result of ambitious and consistent public policies, carried out for over thirty years, both in generating power and in promoting high-performance electricity as a substitute for fossil energies (carbon and fuel, in particular).

France’s determination in hunting down CO2 is at the root of its competitive advantage on carbon, which has led powerful, innovative and high-growth industries to develop (nuclear, electrical infrastructures, rail, etc.).

Looking ahead, the carbon balance can be improved, by continuing along the path toward a low-carbon economy. While the planet struggles to address the climate challenge, UFE is making a contribution so that France can take up this challenge and aim for a more carbon-effi cient economy, one that creates jobs and industry.

Beyond the vital need for energy effi ciency, UFE’s Vision 2020 offers an ambitious, though realistic scenario, making it possible to increase electricity’s contribution to lowering CO2 emissions from the energy sector, in three complementary ways: • fi rst of all, by controlling electricity consumption

during peak periods, when the greatest amounts of carbon gas are released;

• secondly, by strongly encouraging transfers from fossil energies to environmentally-friendly electricity, meaning that which emits little or no CO2;

• lastly, by developing our carbon-free generation facilities, through a consolidation of nuclear power and massive growth in renewable energies, which will thereby make is possible to lower the use of peak generation facilities, which are responsible for GHGs.

The UFE’s “Vision 2020” is a full-fl edge action plan that will enable the electricity sector, overall, to contribute to bringing France halfway toward the targets set out by Europe, in lowering carbon dioxide emissions.

utc me s the re ult of amb iou

“The Climate Challenge, New Issues in Electricity”

Union Française de l’Electricité’s Vision 2020

Taking the opportunity of its Annual Conference, on 26 May 2009 in Paris, UFE unveiled its “Vision 2020”, on the key

role which electricity plays in fi ghting climate change. Aware of the stakes, the entire French electricity industry turned

out, in all its diversity, with players of every size and from area of activity, alongside the largest industrial sectors and

representatives of the public authorities. In closing the day, Laurence Parisot, MEDEF Chairman, reminded attendees

that sustainable development is now a vital component of France’s offering.

Robert DURDILLY,

Chairman, Union Française de l’Electricité

Debates led by Nicolas PRISSETTE, journalist from the french newspaper " Le Journal Du Dimanche "

UFE - The Climate Challenge, New Issues in Electricity // 5

ROUND TABLE: VISION 2020

Participing in the Round Table :

Philippe HUET

France is an exception where CO2 emissions are concerned. Its emissions level, amounting to 70 grams of CO2 /kWh is far lower than the European average (370 grams of CO2 /kWh). This situation can be attributed to the massive investments that led France to give priority to hydro-nuclear generation (85%), when 50% of Europe’s power generation is of fossil origin. This development comes alongside a situation where electricity is given a dominant role. To wit, 14% of households are equipped with electrical heating and industry posts a 35% electricity penetration rate.

To understand the origin of the CO2 emissions, the answer lies in the peak hours. To wit, one of the major reasons behind the fact that the power used during peak hours is increasingly more quickly than consumption, is thermo-sensitivity, which boosts demand in the winter, during peak hours, when aggregated consumption levels exceeds the power generated from the hydro-nuclear facilities alone. The resources used to take up this demand generate emissions and consumption spins out of control for, in Winter, from as early as 5 PM, the lights go on in offi ces and households.

Another reason behind the peak-hour spiral: the huge surge in recreational infrastructures. For instance, a fl at-screen TV consumes 6 times more power than does a normal screen.

On this basis, the monopoly-system had developed incentive price signals to suspend or delay electricity consumption. This is referred to as the “cut-off” system. However, deregulation has led those signals to go out of existence. The equivalent of 4,000 mGw in power via cut-off is thus lost.

Consequently, exploring scenarios that bring about economical, effi cient and carbon-free solutions means referring back to history and to the components that create consistency between choices upstream, the development of national electrical facilities, uses, regulations and, lastly, an incentive price signal is that people adopt the right consumption behaviours on a day-to-day basis. In other words, the idea is to fi nd, within an open system, how to build consistency between two production choices, regulations and economic signals, in order to achieve a more effi cient, less carbon-intensive system.

Thierry FRANCK de PREAUMONT

UFE’s aspirations are expressed along two thrusts: energy control and peak-hour regulation. Within the timeframe under consideration, energy control will enable us to achieve electricity savings of 12% (57 tWh). It will be

offset by three growth factors and would lead electricity consumption, which does not emit CO2, to attain 552 tWh, making for growth of 15% in 2020.

UFE offers a transfer of fossil energy uses toward high-performance energy electricity, on three main segments:

• domestic uses: consumption via electronics and

recreation, and heat pumps

In these areas, it is important to lower fossil energy consumption by giving priority to electrical, less carbon-intensive uses. The response is to eliminate fuel in the residential and service sectors. Heat pumps will make it possible to save 40% of consumption in individual housing and 14% in collective housing. In addition, when they are installed, this will provide the opportunity to insulate existent buildings. The aim is to do away with fuel-powered heating and upgrade our electrical heating. To wit, the installation of 5 million heat pumps will bring about a 6 tWh increase in electricity consumption. Let us bear in mind that thermo-sensitivity is the leading factor of the increase during peak hours.

• transport

Cars are responsible for 180 g in CO2 emissions per passenger and per kilometre, whereas mass transit generates 10 g of emissions. However, developing mass transit brings about an increase in electrical consumption and will lead to a 16 tWh increase in emissions. In addition, electrical cars can be expected to make their surge ahead by 2020. One million electrical vehicles are expected to be in circulation in 2020 and fi ve million in 2030.

• industry

Today’s growing use of electricity is the result of constant efforts on the part of industrials, as well as the interest brought about by this energy source to lower CO2 emissions. Mature technologies and the rise in heat pumps are expected to bring about 20 tWh growth in consumption and will make it possible to save 6 million tonnes in CO2.

Controlling energy use during peak hours, lastly, will make it possible to lower emissions by expanding instances of cut-off and support use during off-peak hours, for instance, with electrical vehicles charged at night.

Stéphane MOREL

Energy management, controlling peak-hour requirements and transferring fossil energies makes it possible to support UFE’s vision for 2020. There is a connection between these aims and the current evolution of production faculties. For instance, the consumption load curve in France is broken down into three parts (renewable, nuclear and fossil). Fossil fuels now provide 10% of the load curve, as compared to 6% in 2020, where 25% of the curve will be covered by renewable energies.

From 2007 to 2020, the size of our total production facilities will grow signifi cantly, increasing from 109 to 148 Gigawatts (35%). Likewise, in qualitative terms, developments will come from the commissioning of two EPRs, growth in hydraulic power amounting to 25.7 GGW and a signifi cant increase in renewable energy of 32.7 GGW in capacity, as compared to 1.7 today. The use of coal will decline sharply, in line with the environmental directives. Our production facilities will thus be more competitive and be capable of exporting more (105 tWh in 2020), all the while contributing to Europe’s CO2-reductoin

Philippe HUET,

Deputy Managing Director, EDF

Stéphane MOREL, Secretary General, SNET-E.ON France

Thierry FRANCK de

PREAUMONT,

Chairman, CPCU (GDF SUEZ Group)

P R E S E N T A T I O N


targets. This is a primordial objective. There are currently 34 million tonnes (65 g per kWh) in emissions, mainly from coal-powered plants. In 2020, CO2 intensity is expected to be cut in half (32 g per kWh) and even though production levels are increasing by 20%, emissions will be reduced by 44%. However, this decrease is due to action on peak-hour requirements. On the load curve, peak-level consumption can be absorbed by energy-control policies.

While the CO2 balance is clearly listed in facilities’ emissions in 2020, it is important to include in the benchmark emissions all of the fossil energy uses that will be replaced by electricity.

The 60-million tonne decrease in emissions in 2020, lastly, will illustrate the key contribution which France made toward achieving its objectives in the European arena, pursuant to the 2050 objective. This ambitious but realistic vision is based on infrastructures with many assets, and shall enable a response to environmental policy targets.

Nicolas PRISSETTE: As a new entrant on the electricity

market, what do you think about UFE’s Vision 2020?

Charles BEIGBEDER: Poweo was part of the process through which Vision 2020 came into being and is fully-committed to it. At the Eurelectric Convention in Brussels, Poweo emphasised what a great opportunity it was to be able to take part in making the European continent and France independent energy users, develop new businesses, create jobs and revive production capacities. All of these components are very attractive to a new entrant like Poweo.

Nicolas PRISSETTE: Poweo is a company that has, since its

founding, worked to institute innovation through its offering.

What role should innovation play, precisely, in UFE’s Vision

2020?

Charles BEIGBEDER: Every company innovates through what it builds. This is a key point for a new entrant, which needs to stand out, through its marketing and commercial innovation, fi rst and foremost, and secondly by its vertical integration strategy, which leads, ultimately, to its technological innovation. Its partnership with public laboratories and start-ups has been effective. Against this backdrop, Poweo has been working on a high-concentration solar power project with Promes Laboratory as well as on an electricity storage project, using refractory materials, with Saipem Group. Downstream, the Poweo Box will allow users to remotely control their electrical equipment to request cut-off when they wish, during hyper-peak times and mitigate consumption peaks, all for the sake of public interest and that of retail users. As old metres are replaced, there has

been more and more thinking about remotely-controlling customers’ electrical equipment. On the production end, out of 14,000 megawatts being planned in France, 9,000 will be conveyed by new entrants. Poweo is part of this and thus has the duty to innovate, so that it can be present on the market.

Nicolas PRISSETTE: Upstream, in production, how does

Poweo intend to contribute to implementing UFE’s Vision

2020?

Charles BEIGBEDER: Poweo shares the common aim of replacing power generation capacity and taking up the major challenge of climate change, but keeping energy under control and counting on new energies, such as clean nuclear power, fossil energies and natural gas, which has a part to play in the energy transition.

Nicolas PRISSETTE: Charles Beigbeder, I would like to ask

you a question in all confi dence: are you glad you became

part of UFE, where you rub elbows with the heavyweights in

the profession: EDF and GDF Suez, or even E.ON, which is

behind SNET?

Charles BEIGBEDER: Taking part in UFE’s discussions turned out, initially, to be something unsettling, due to the breadth of the working groups and workshops. However, being part of UFE is very valuable to Poweo, in that it allows it to take part in building UFE’s vision and strategy, for instance during the post-publication phase of the Champsaur report.

Charles BEIGBEDER,

Chairman, Poweo


AN NGO'S PERSPECTIVE

I. CO2 EMISSIONS: WHAT IS AT STAKE

At the Copenhagen Conference, the IPCC’s climatologists put forth a number of pessimistic scenarios, including the Red Scenario (5-degree increase in temperature by 2100), which is actually the scenario based on current trends. Emissions levels are growing and, while the fi nancial crisis has limited this rise, it has also brought about a slowdown in the investments needed to fi ght emissions. Yet the stabilisation curve on CO2 concentrations, needed to limit climate change, will entail a peak in emissions in 2015, calling for immediate action, as the transition will be swift and diffi cult. On another curve, one can see that CO2 emissions are growing very quickly and in a way never before seen. There is too much use of fossil energies. Consequently, the use of any and all other forms of energy is slowing down the intensity of emissions.

II. ENERGY SUPPLY

Faced with the estimated decline in oil and gas, energy users are ultimately shifting to carbon. This “business as usual” strategy raises the issue of climate deregulation, the failure to resolve the energy issue and the lack of substitution in liquid energies. In other words, there is no real alternative for responding to demand. This implies giving a carbon pricing signal to stimulate the development of carbon-neutral energies, lower energy demand and preventing supply disruption risks.

III. A NEW REVOLUTION

With each KWh of electricity in France comes approximately 70 g de CO2, which is a good level of performance with respect to global fi gures. Progress nonetheless remains possible, by lowering consumption peaks, thanks to price signals (tariff modulation). Transfers to other forms of use, from fossil energy to CO2-effi cinet electricity, also offer a way to save on carbon emissions at the national level. Lower electricity consumption, on a constant usage basis, need to become the norm, considering the urgent issues

which the planet faces. We must take action quickly and the consumer needs to realise the urgency of climate issues. Lastly, we must actively prepare to better keep energy demand under control.

DISCUSSION

Nicolas PRISSETTE: What do you think about the pace at

which reforms are progressing currently?

Alain GRANDJEAN: Reforms are coming into being, but there is not enough mobilisation. UFE’s Vision 2020 is very much ahead of the rest, thanks to the awareness created by the Grenelle Process in France. However, the latter is not enough.

Nicolas PRISSETTE: Is the government’s action in various

areas moving in the right direction?

Alain GRANDJEAN: Where NGOs are concerned, the measures devised following the Grenelle Process are not implemented quickly enough. In addition, the limited communication strategy with regard to citizens could give them a negative perspective. There is also great concern about the rise in price of energy, to which we must provide an answer.

Nicolas PRISSETTE: How can we reconcile the price signal

with the requirement to maintain adequate buying power?

Alain GRANDJEAN: A universal climate subsidy could be a

Alain GRANDJEAN,

Member of the Strategic Committee, Fondation Nicolas Hulot for Nature and Man

Global CO2 emissions: forecasts and observed levelssource : Climate Change 2001 GIEC

Transfer to coal: a climate disaster loomsSource: EDF R&D, Revue de l’énergie, April 2007

Our economy is increasingly carbon-intensive…Change in gross emissions, as a function of GDP from 1970 to 2004

Source: IPCC, 4th Assessment Report, May 2007

Change in global energy consumption (scenario with steady demand and high carbon reserves)

To be determinedRNEs

Nuclear

Coal

GasOil


fair way of offsetting taxation that would be determined on the basis of energy consumption and emissions. It can be likened to a bonus/malus system balancing out disparities between consumers.

Nicolas PRISSETTE: What kinds of efforts steered by

industrials do you fi nd best-suited to the situation ?

Alain GRANDJEAN: The rise in the price of oil per barrel is unrelated to fi nancial speculation, but does denote our entry into a period where energy is increasingly expensive. This makes the priority energy effi ciency. The public authorities need to outline a more consistent overall policy and anchor within the economic system other systems that disconnect information about the benefi ts of resource consumption and CO2 emissions. It is not in the operators’ interest to wait, particularly as striving toward energy effi ciency is a source of opportunity for the entire production chain. Peak cut-off is also a source of benefi t for system managers.

Nicolas PRISSETTE: How would energy management be

applied, concretely, by a household?

Alain GRANDJEAN: Households have advanced tools for running their electrical equipment and improving their thermal performance. However, there is a risk of rebound effect, giving rise to additional household appliance purchases. Electricity can stand in for other energy sources when it emits less carbon, but waste needs to be avoided. It is important that we own up to reality and share resources, taking advantage of what technology and incentive tax instruments can offer. Every stakeholder with an interest in taking action needs to make this known. The government needs to mobilise in the face of all global players, like China. We need to send out very powerful signals, in order to ensure that our efforts can combine

Nicolas PRISSETTE: Is it enough to send out a strong signal

to the emerging countries, or are international authorities

necessary?

Alain GRANDJEAN: International-level negotiations, with the United States, China and the major emerging countries – which are the main CO2-emitters – do need to be organised. For there to be a leadership effect requires that Western countries recognise their historical responsibility in today’s emissions problems. These countries also need to be aware that this is a positive-sum game. During major transitions of this kind, the public authorities need to shoulder the changes in the economic community and in society by showing the broader picture. If they do not, there will be disorders of many kinds

Nicolas PRISSETTE: Do you ultimately foresee internatio-

nal competition on the issues discussed?

Alain GRANDJEAN: We are going to see, in the very short term, highly-intense international competition on the new “low-carbon” business models. China will be very active and the United States want to take over the leadership, as they have done with regard to the Internet.

Nicolas PRISSETTE: How does Fondation Nicolas Hulot

see nuclear power?

Alain GRANDJEAN: Any scenario involving a phase-out of nuclear power in France is unrealistic in the short term and would solve nothing. The issue needs to be approached

from the perspective of 2050. It is thus vital that we stimulate every source of energy in order to avoid the risk of an energy shortage across the world and have as many alternatives as possible. Until that time, we will need to look at which energy sources need to be given priority.

Nicolas PRISSETTE: What is your opinion of UFE’s Vision

2020?

Alain GRANDJEAN: UFE’s initiative is excellent, particularly in the broad perspective it takes. However, the message needs to deal not only with transfers in use, but also on controlling demand for energy. The thinking needs to focus on how to cut down energy consumption and change biases on the issue.

Nicolas PRISSETTE: What do you think about peak and

extreme-peak?

Alain GRANDJEAN: There is consensus on this topic and on the need to have a pricing signal (in particular on thermal output), as well as on technical steering instruments. The deregulation of the electricity system caused a lot of time to be lost on the matter, polarising the teams on competition and not focusing on the pricing issue.

Nicolas PRISSETTE: Concretely, how would a responsibly-

consuming household look?

Alain GRANDJEAN: The easy pitfall is to assume a technological solution will solve every problem. The priority is give people incentive to lower their power consumption in existing buildings and in new housing. There is no technical issue; the industries will organise. The only problem lies, today, in the reluctance of households to invest due to lack of profi tability, in the short-term, in energy savings. The State is socially responsible for helping them to this end.



Nicolas PRISSETTE: How will EDF’s strategy contribute to

maintaining and improving France’s good carbon balance?

Pierre GADONNEIX: France’s good carbon balance is due to the success of the nuclear programme and the quality of EDF’s power generation. The paths and resources adopted by France to lower CO2 emissions now need to be carried forth so that it can remain at the same level and achieve an even better CO2 balance. EDF produces 95% of its electricity without emitting CO2, as 85% of it comes from nuclear power and 10% from hydraulic energy. The Group can still contribute to this effort through energy-savings and better control over its energy consumption. This path offers great potential, for example, through building insulation or optimisation between consumption and power generation. Moreover, the solution lies in renewable energies. EDF is a leader on hydraulic energy, the leader on renewable energies and is investing massively in wind and solar power. Lastly, production facilities need to emit as little CO2 as possible. Nuclear power is one way to achieve this and the country’s thermal generation facilities need to be upgraded

Nicolas PRISSETTE: EDF is currently no longer the only one

to champion the role of electricity: how does this impact

cooperation on new issues in electricity?

Pierre GADONNEIX: The electricity sector is a very capital-intensive one. Both systems can work. The monopoly system was very successful and made it possible to build a competitive and safe infrastructure base, which the entire world envies. Europe then chose to open up to competition, with a certain degree of success. However, there can be no hybrid system that would prevent competition from developing in a balanced manner. Under the competitive system, a number of major multinational players are developing, rather than national operators. Companies like EDF are losing market share in France and are becoming multinational corporations. Operations carried out with British Energy and SPE are shifting EDF’s sales revenue to the international market. In the fi eld of energy, political leaders are required to meet targets on security of supply and CO2-emission reductions. These topics will be central to the news for several decades. It is important, against this background, that investment and innovation remain steady, despite the economic crisis. Industrial operators may be tempted to slow down, but in the face of these two very long-term issues, they should upgrade existing facilities and develop new capacity. The governments need to send them stable and incentivising

price signals, including on the price of CO2, under the Climate Package set out in Brussels.

Nicolas PRISSETTE: How do you see the future of France’s

nuclear system, which is currently the focus of intense

discussion?

Pierre GADONNEIX: Considering the two issues just cited above, nuclear power does form an integral part of the solution. It will not be the only response and it is important to use everything at our disposal, in accordance with local circumstances and social and industrial tradition. The most important issue is to ensure that nuclear power is accepted by public opinion. The issue is not a technical one. Every European country produces nuclear power, except Italy. However, for thirty years now, not a single new project has been developed. To gain acceptance, nuclear power needs to be transparent and safe: France, for instance, has an independent safety authority, in charge of inspecting and ensuring transparency in the nuclear industry. Lastly, nuclear power needs to be competitive.

To reconcile all of these targets, there must be strong commitment from the States. Great Britain, for instance, has shown the right path and decided to revive its nuclear programme after two years of dialogue. Also needed are larger operators, with the legitimacy that comes from experience. This is why EDF is open to participation alongside local operators. Under these circumstances, the new EPR model needs to be able to take over from today’s plants. Several of them are planned in China, the United States and Great Britain.

Pierre GADONNEIX,

Chairman, EDF


ROUND TABLE:ELECTRICITY, A GROWTH DRIVER FOR INDUSTRY

Participing in the Round Table:

Nicolas PRISSETTE: Jacques Oddou, what is the current

place of electricity in industry?

Jacques ODDOU: One-third of the power consumed by industry is electricity, one-fourth comes from gas. Since the 1970s, the share of electricity in France has increased regularly, and more quickly than the European average, due to the qualities specifi c to power generation in France.Three-fourths of the electricity generated is intended for specifi c uses (engine-powering, lighting, cooling) and one-fourth for industrial processes. Unlike the building sector, industry tends to consume electricity with little impact from temperatures or time of day. As a result, the kWh of

electricity consumed by industry are and will remain low in CO2.

Nicolas PRISSETTE: What are the key technologies toward

ensuring energy-effi cient electricity with a view toward

controlling energy consumption and emissions?

Jacques ODDOU: Signifi cant progress is being made on uses specifi c to electricity, such as variable-speed engines or new sources of lighting. Where processes are concerned, resistance-based systems are developing signifi cantly, in particular when there is a need for specifi c thermal cycles and treatments. Induction is developing, particularly in metalwork, where it can be used to give particular qualities to the product, very effi ciently. Ohm’s Law heating, meanwhile, is best-suited to heating liquids, even in viscous state, without impairing any of its qualifi es. It is highly-appreciated by industrial players in the agro-food industry. Specifi c technologies are bringing greater effi ciency to heat recovery, such as mechanical steam compression, which offers high performance in concentration or drying, and the heat pump, which has a great future ahead of it, in industry, where a great deal of lost heat could be reused through it.

Nicolas PRISSETTE: What kinds of savings can we hope for

Joël CONAN,

Advisor to the Chairman, FG3E

Max-André DELANNOY,

Deputy Director in charge of Energy Markets and Social Affairs, DGEC, French Ministry of Ecology, the Environment, Sustainable Development and the Sea, MEEDDAT

Alain GRANDJEAN, Partner and Co-Founder, Carbone 4

Jacques ODDOU,

Director of Trade and Renewable Energies Programme, EDF R&D

Pierre PERRIN,

World Operations Manager, Yoplait


where industry is concerned, and at what terms?

Jacques ODDOU: There is potential for at least 50 TWh per year in fossil fuels, for which we could substitute 20 TWh/year in electricity by 2020. This substitution would lower emissions from industry by over 12 million tonnes of CO2 per year, without signifi cantly increasing emissions from our electrical infrastructures. This potential of 20 TWh/yr is divided into approximately three parts: 3 TWh that are achievable easily and quickly, 8 tWh from existing technologies, and achievable if the economic environment is conducive to it (high price on fossil energies, for instance); and an additional 9 tWh in new applications, also achievable if action is taken to facilitate their emergence initially.

Pierre PERRIN: Yoplait is the world’s Number 2 maker of yoghurts and chilled products, and exports 85,000 tonnes per year. The Auxerre plant produces Yop, Petits Suisses and Petits Filous, where the largest quantities of residue come from acid serum. Moreover, in order to the transport costs of our products, we need to concentrate the serum by removing water. The traditional method used thermal evaporation. However, it also held some drawbacks. Yoplait

thus designed, along with EDF, the mechanical team compression technique, which consumes little energy, thanks to a self-sustaining reaction. The kWh balance is attractive in that the solution produces 19 kWh as compared

to the previous technology’s 212 kWh per tonne. The CO2 savings amount to 91%. Economically, the cost is relatively similar, but the profi tability is very different.

Nicolas PRISSETTE: Has the undertaking been secured the

energy-effi ciency certifi cation?

Pierre PERRIN: The DRIRE has explained to Yoplait that the solution would not be eligible for certifi cation since not all of the techniques used in it had been optimised. In this sense, we saw real inconsistency between what the politicians have said and what the administration is saying.

Alain GRANDJEAN: Carbone 4 carries out carbon-intensity reviews for major corporations and later helps them to produce carbon fi lms, make economic computations and bring their processes and strategies forward. Companies are beginning to realise the importance of this approach and are anticipating on the future price of carbon. Groups such as Bouygues, Veolia and Havas are now buckling to what they see as an attractive subject. Their customers can also demand that the carbon balance of the projects they undertake together be listed in their terms of reference. Another reason for their ordering carbon appraisals can be found in their desire to be even more competitive and stand

out. Carbon is a factor in industrial competitiveness today and it is important to maintain our lead at the European level on this topic.

Nicolas PRISSETTE: Joël Conan, as an operator, FG3E has

observed, in particular in industry, a decrease in cut-off and

in the use of interruptible electricity supply. Why is this, in

your opinion?Treatment of serum from cheese-making factory

Main carbon balance components

Results carbon equivalent

ex. : Bilan Carbone global


Joël CONAN: The use of cut-off is deteriorating because industrials have lost all economic interest in it. Interruption comes at a cost for industrial players, who need to fi nd adequate fi nancial grounds for using it. Pricing signals are a central part of what we have observed. The end of the single-user model in the electricity sector has re-shuffl ed the deck for industrial players, who no longer see the point in lowering peak consumption.

Nicolas PRISSETTE: FG3E is one of the promoters of the

Energy Performance Certifi cate (CPE), in particular through

the Energy-Effi ciency Services Club: what benefi ts does this

offer clients, as regards energy control or power control?

Joël CONAN: The CPE was part of the Grenelle 1 Law and is also part of the Grenelle 2 Bill. The energy service operators wanted to put their experience to work to keep energy under control. The FG3E has, as such, taken part in creating the Energy-Effi ciency Services Club, the purpose of which is to convey the message that producing energy performance requires providing project-owners with guaranteed return on investment. Many people are reluctant to invest because they do not have any guarantees. The CPE is aimed at providing customers with the certainty that their investments will provide them with long-term energy savings. The experience can also be transferred to the collective housing sector. The CPE has given rise to an all-encompassing contract, where the party providing the guarantee must have control over all of the initiatives that lead to energy effi ciency. The offer is made in terms of consumption. The operator, which is responsible upstream, must ensure that all of the infrastructures run properly throughout the guarantee period so that, during peak hours, the same effi ciency can be maintained.

Nicolas PRISSETTE: Max-André Delannoy, we have just

heard how high expectations are where price signals are

concerned, as a means of giving industrial players new

incentive to engage in cut-off. How are the public authorities

planning to go about this?

Max-André DELANNOY: The right price signal is one that could both cover the appropriate costs and give fair incentive, from the producer’s standpoint (margin) or that of

the consumer, to guide his or her behaviour. The regulated pricing system has historically been based on costs. The incentive part needs to cover all of the objectives in energy policy (security of supply, environmental protection, competitiveness and universal access to energy). Beyond the cost issue, the price signal is a refl ection of regulatory systems (equalisation, social pricing, etc.), as well as market systems such as the CO2 quota system or energy-savings certifi cates. Today, the electricity market’s new structure has caused a drop in price signalling as a means of creating incentive toward cut-off during peak hours. Whereas price signals used to apply to all aspects of pricing, it can no longer be used where supply is concerned. We need to fi nd a way to bring price signalling back into the new market organisation

Joël CONAN: To apply the CPEs, public procurement agents use the Public Procurement Code. However, it needs to be made more fl exible if we are to achieve all-encompassing energy performance markets. The Partnership Contract, which has been in place since 2004, is very well-suited to broad contracts of this kind and to carrying out funding, but requires an exemption from the Public Procurement Code and needs to be justifi ed.

Nicolas PRISSETTE: What are the options being considered

as regards opening the CEE system more broadly to

industry?

Max-André DELANNOY: The energy savings in industry are eligible for CEE, even though the latter were originally designed for the mass individual consumer market. The CEE is required of all electricity suppliers, but the system is open to industrial players. Yoplait has stated that it has had trouble securing certifi cation for its operations; for this kind of highly-specifi c operation, the public authorities can sometimes lack the expertise needed to assess industrial players’ energy savings, in comparison to the benchmark situation, and this can make it diffi cult for them to process the information. The CEE’s system is currently being revised in the Grenelle 1 and 2 bills and the government is open to hearing proposals.



Nicolas PRISSETTE: UFE has emphasised the second

dimension of electricity: power. Is it correct in doing so?

Dominique MAILLARD: There is good reason for its stance, in that electricity grids are designed to be able to stand up to peak periods and, to that end, the key factor in sizing is power.

Nicolas PRISSETTE: For the past few years, cut-off was

considered by those heading the markets as offering no

benefi ts. What is your opinion, as RTE embarks on a number

of campaigns, in Brittany in particular, on this topic?

Dominique MAILLARD: Prices and pricing systems have always contained two components: the price of the power and the amount of energy consumed. In other words, this factor was taken into account in pricing, then the concept of monetary or physical consideration is nothing new. However, over the past few years, RTE has had to inform consumers and give them incentive to stagger their consumption during peak hours, in certain regions outside Paris (Brittany and Provence-Alpes-Côte d’Azur), where the safety of electrical supply can be under threat. RTE is also working on the returns side, by experimenting with periodic cut-offs. The campaigns have attracted strong support through the Internet and signals to consumers to delay their consumption during specifi c periods of time. 10,000 people have volunteered in Brittany and the ultimate aim is attract ten times more.

Nicolas PRISSETTE: What is your position on hourly/

seasonal pricing variation in the grid, put forth by TURPE?

Dominique MAILLARD: The government has put forth a request to this end. The pricing on access to the transmission grid does not refl ect seasonal modulation. RTE is working on the issue but prices will have to be tightly-pegged because summer congestion can emerge and cause signifi cant variations in energy fl ows. The signal will need to be fl exible and adaptable. In the years to come, a grid-access price with seasonal modulation will be offered. This will be a major innovation for the electricity transmission grid.

Nicolas PRISSETTE: How do you take into account the

economic situation?

Dominique MAILLARD: We watch the consequences of the crisis, which is refl ected in highly-contrasting changes, depending on the sector.

Nicolas PRISSETTE: Today, innovative power-steering ini-

tiatives have been set up, like Voltalis. What is your opinion

on these?

Dominique MAILLARD: RTE supports the initiative and has launched a call for tenders for proposals on consumption cut-off with major industrial players. The other angle is to combine cut-offs implemented with small consumers. You are talking about the Voltalis project. However, to implement that, specially-developed infrastructures are needed. In addition, the cut-offs can be combined only statistically. The system is being tested on an experimental basis. Moreover, we will need to develop rules for compensating the various players. Both the aggregator and the energy suppliers have to be paid for their services, and this is clearly complex.

Dominique MAILLARD,

Chairman, RTE



Nicolas PRISSETTE: The UFE 2020 scenario places

emphasis on lowering carbon emissions from traditional

thermal facilities. How does the SNET intend to contribute

to this effort?

Luc POYER: E.ON, one of Europe’s leading energy providers is the 3rd-largest power generator in France, thanks to the SNET, which plays an important part on peak production and CO2 emissions. One of the foremost consumption reduction targets is the thermal heating target, through the closing of coal tranches. This will make it possible to attain the -20% CO2 emissions target by 2014 and replace the coal segments with natural gas facilities. E.ON is moreover a wind energy producer and intends to invest in hydroelectric power by renewing management delegation contracts. E.ON, lastly, wishes to be part of the new nuclear development programmes in France.

Nicolas PRISSETTE: Coal is, across the world, the leading

primary energy source mobilised to produce electricity.

Which technologies can be mobilised to lower CO2

emissions? Do you believe in CO2 storage?

Luc POYER: E.ON fi rmly believes that there can be no carbon-free energy future for the planet. The issue of CO2 emissions from coal needs to be addressed by improving the output of today’s production units. E.ON is building a plant to increase output from 40% to 50%, in 2014. In addition, as regards capture and storage, E.ON is ahead of the game and has set out along three technological research avenues. The aim is to have clean carbon plants by 2020.

Nicolas PRISSETTE: In France, nuclear power is highly

modulated: it plays the part which thermal power plays in

other countries. As a result, the intrinsic performance of

nuclear power is not as high, but the country’s performance

on CO2 is better than that of other countries. How do you

see this trade-off developing in the future? Luc POYER: E.ON is Europe’s 2nd-largest producer with 11,000 installed MW. It is true that the performance of French nuclear facilities is slightly down due to its modulation, compared to that of other European facilities and, in particular, that of E.ON. However, it is my opinion that this feature specifi c to France’s nuclear facilities should lessen, in any case, due to greater market integration on the European scene. As soon as the markets come into synch, at least at the regional level, each production facility will be cited according its place on a European order of merit and France’s nuclear facilities will no longer be called upon to modulate.

Luc POYER,

Chairman of the Executive Board, E.ON FRANCE


ROUND TABLE:GROWTH DRIVERS IN TRANSPORT


Igor CZERNY

Without a doubt, automobile manufacturers are entering a new era and the landscape is changing. We can see these changes through the mobilisation of major players, manufacturers and public authorities and in the number of

projects mushrooming. Many manufacturers are starting to design vehicles that draw upon electricity as their source of power. It is important to note how prominent development programmes are becoming across the world. Despite the market’s current dreary times, the automotive sector is seeing an optimistic surge and the one-uppance on innovation is seen as a way of getting out of the crisis. The public’s enthusiasm for electrically-

powered rechargeable vehicles, alongside this is emerging as a sign of the awareness that it is important that mobility also be sustainable and responsible. Lastly, technologies are evolving and this has brought about great confi dence in the market: there is no turning this dynamic around, as both the economy and the environment need it. Industrial production is now focused on other solutions in housing and the automotive sector is following along. From the economic standpoint, the 2008 oil crisis sent out new signals. On the environmental end, the return to electricity is due to the CO2 emissions problem, at the global level, 20% of these being attributable to automobile and local pollution. This situation is helping to promote the electrical vehicle. Moreover, China is expected to play an important part in its development.

All of this means that we need to stay away from passive attitudes and illusions and focus on putting together viable, sustainable and attractive solutions. In addition, this new direction assumes cooperation between the players in the sector. Nicolas PRISSETTE: Michel Gardel, what is Toyota’s vision

as regards technologies and the electrifi cation of the

transport sector? What are you expecting in terms of CO2

perforce with the rechargeable hybrid vehicle (RHV)?

Michel GARDEL: Toyota’s idea is to develop a strong-willed policy and fi ght climate warming while striving to ensure better air quality. Lastly, we need to fi nd a way to ensure

Joseph BERETTA,

Deputy Manager in charge of Energy, Technology and Automobile Emissions, PSA

Peugeot Citroën

Christophe CHEVRETON, Vice-Director of the Electrical Vehicle Project, Renault

Igor CZERNY, Director, Electricity Transmission, EDF

Michel GARDEL,

Chairman, Toyota France

Benoît THOMAZO,

Regulations Director, ERDF

UFE Scenario:

Electricity consumption in France: Outlook 2030


less energy-dependence where fuels are concerned. Toyota has thus designed the ultimate ecological car, exploring all of the avenues possible. Hybridising is a fundamental approach, which has been in existence since 1965 and appears in step with the times, as 1.7 million vehicles are equipped with the technology, including the Prius. From as early as 2010, the target is to sell one million hybrid vehicles per year, including rechargeable hybrid vehicles. There are many environmental benefi ts to electrical and rechargeable hybrid vehicles. With the vehicles it has put

together, Toyota is aiming from the retail market, where customers need versatility. In this regard, the rechargeable hybrid vehicle improves independence and mobility. It is true that the ability to recharge the vehicle lowers it

cost of use and makes it low-cost, high-performance and enjoyable to drive. The technology, lastly, makes it possible to drive in urban areas and on motorways, at speeds up to 100 km/h.

Nicolas PRISSETTE: Joseph Beretta, on what type of

vehicles has PSA Group chosen to position itself today?

Joseph BERETTA: PSA remains the leader on the electrical vehicle market, with 10,000 vehicles on the market. Sales went into freefall in 2004, but a return to Renault’s model (battery rental and vehicle sales) is being considered, fi rst of all on a “niche” market, where the total cost of use will be promoted and the development costs shared with Mitsubishi. An urban vehicle will be marketed in 2010. Beyond that time, PSA will aim to hybridise and market a rechargeable hybrid by 2013. Recharge infrastructures compatible with all types of rechargeable vehicles will thus need to be set up. The hybrid strategy is aimed fi rst and foremost at the client and envisions demand and the need for mobility according to consumer lifestyles, all the while taking into account what is best in terms of energy and technology. The hybrid vehicle is, in other words, the project of the future, and PSA has placed all of its bets on diesel hybrid in Europe, due to the cost of technologies. The savings in terms of CO2 are greater, but there is a real additional cost for the customer, which is offset by enhanced functionalities. Today, in fact, PSA is the leading manufacturer where CO2-performance is concerned, with 140 g of CO2 emitted in 2008.

Nicolas PRISSETTE: Christophe Chevreton, how does

Renault see the electrical vehicle market, in France and in

Europe?

Christophe CHEVRETON: Renault’s electrical vehicle programme is actually called the “Electrical Vehicle Strategic Programme”, proving just how importance it is to Renault.

Bearing in mind that 100% of work commutes total less than 100 km, it is important to give priority to the electrical vehicle. Renault has chosen the 100% electrical route – the only way to achieve zero emissions. For instance, to this day, no hybrid vehicle can receive the State grants (EUR 5,000) aimed at vehicles emitting under 60 g of CO2.

The fi rst such vehicle will come out in 2011 and is headed toward mass manufacturing and a price tag on par with that of thermal-power (excluding battery). The new longer-life batteries include high-technology components and will thus be costly at the start, until volumes allow us to lower the price. They will be offered on a rental basis so as to alleviate any customer concerns and allow them to benefi t from the latest technical developments. The response to the issue of autonomy lies in the provision of a network of normal, high-speed charge stations, which would not require the use of an engine, and provide customers with all of the ease-of-mind needed, as it would do away with any fear of breakdown. The State, which can play a major part in developing EVs in France, has proven to be a real driver, by granting the EUR 5,000 aid, to which I was referring earlier. The market is diffi cult to assess, but all of the forecasts are in synch, stating that EVs are destined for great things.

Electricity, leveraging performance in motorization

PHV CO2 reduction potential

The rechargeable hybrid vehicle, a promising technology

Data: Ecole des Mines, Paris


What will be slightly more complicated is to accurately predict when the market will be able to take off. The latest estimates show a market with 3-million vehicles sold in 2016, 800,000 of these in France.

Nicolas PRISSETTE: In response to the development of

electrical transmission overall, we will need suffi ciently

sturdy grids. How will ERDF approach this aspect, in terms

of investments and infrastructure development?

Benoît THOMAZO: ERDF and the local distribution companies are in charge of grid operations, steering and maintenance, as well as grid connections and energy fl ow metering. The distribution grid managers, including ERDF, are thus very involved in developing infrastructures, if only to reconnect them to the distribution grid and implement the network improvements which they require. The problem that is of greatest concern to us is to determine what kind of charge solution will be selected for the electrical or hybrid vehicles of the future. The more high-speed or possibly even very high-speed charge stations there are, the more power will be needed and the costlier it will be to connect to the grids. In contrast, if it is only a matter of connecting the normal charge systems up (a few hours’ time), the current grid is almost suffi cient. As a result, the impacts on the network will have to be assessed according to the charging times desired. A number of scenarios, ranging from EUR 0 to 6 billion have been drawn up with an assumption of 1.5 million vehicles, depending on the type of charge. It should be kept in mind that investment on the grid shall be born by all electricity consumers rather than by the users of electrical or rechargeable hybrid vehicles alone. ERDF also has a set of 20,000 vehicles and is ready, if economic conditions so allow, to replace part of them, with electrical or rechargeable hybrid models.

Nicolas PRISSETTE: I am aware that Toyota has many

experiments going on these days and up to the end of the

year, on the RHV, in particular with 100 vehicles being

tested in Strasbourg. Can you say a bit about this?

Michel GARDEL: If we take all of the players into account, the project is aimed at testing vehicles on a large scale.

There will be 400 recharge points in the urban community and a variety of user profi les will be available. The project will be aimed at major companies and institutional users before large-scale marketing comes into play, 5 years from now.

Nicolas PRISSETTE: Christophe Chevreton, what do you

see as the key success factors on the EV market, in terms

of private domestic infrastructures, as well as public and

private collective infrastructures (supermarkets, parking

areas, etc.)?

Christophe CHEVRETON: Renault feels that, as long as there are many charge infrastructures available, in adequate numbers and offering good coverage, the issue of autonomy will be solved. In terms of infrastructures, we are familiar with the charge times on the previous generations, which was around 6 hours. Renault is working on quicker charge solutions, which range from roadside charge on the order of 1 hour to another charge option, totalling less than 3 minutes, at battery exchange stations, which is a move in the direction of customer ease of mind. One option is the quick charge in less than 30 minutes, in shopping centres and parking areas and, of course, gas stations.

Igor CZERNY

The wide range of projects and visions shows that the impetus is there. However, actually, innovation requires a lot of time to be instituted, due in particular to the speed at which France’s drivers are replacing their vehicles. Over the long-term, the aspiration needs to give rise to large-scale research programmes, so as to divide the price of batteries, lasting, understandable regulations and the creation of public-private partnerships. Car manufacturers will need to show simplicity and fl exibility by starting out with the existing systems. It is important to rethink the concept of mobility and be aware that the electrical vehicle is not an answer to everything and needs to be approached as part of a multi-modal whole. It will be designed as a mobility service. The solution thus appears a new model for business and movement.



Nicolas PRISSETTE: Jean-François Cirelli, GDF-Suez is

a highly-diverse and leading player in energy in France.

How is it involved in developing high-performance uses for

electricity?

Jean-François CIRELLI: GDF-SUEZ has great ambitions in electricity and the Group has the tools and offers to become a major electricity supplier in France. The Group’s electrical facilities produce 25% of France’s hydro-electrical output and GDF Suez owns wind energy and thermal energy facilities. GDF Suez offers a low-carbon offer (Dolce Vita), a bank (Solfea) aimed at helping customers ensure that they have high-performance facilities, photovoltaic solutions and install heat pumps.

Nicolas PRISSETTE: How can GDF- Suez Group contribute

to fi ghting climate change and supporting UFE’s Vision

2020, which advocates a greater role for electricity in

France in the fi ght against greenhouse gases?

Jean-François CIRELLI: The Group wishes to develop production tools in France, with the idea that there will be greater energy requirements. For instance, GDF SUEZ is taking part in the construction of the second EPR in France and wants to be operator on the third one. The Group continues to develop in wind energy and has

acquired many companies in this fi eld. It is participating in the replacement of hydraulic concessions. There is a Services division dedicated to energy performance and agreements have been concluded with French manufacturers on the electrically-powered vehicle. GDF SUEZ thus aims at being active in all of these areas, except in the development of electrically-powered heating in France. Nicolas PRISSETTE: The Champsaur Commission

encourages competition between integrated operators

along the entire value chain. Do you share this view?

Jean-François CIRELLI: The Commission’s work was complex and politically sensitive. The diagnostic conclusions and solutions are well-balanced. This is a very important piece of work, including professionals and Parliamentarians. The Group shares the report’s view that room should be left for other competitors. Alternative operators need to have access to basic power, at a price that is conducive to the development of competition. The overall balances are well-respected and GDF SUEZ encourages the government to implement the report’s recommendations, if it decides to adopt them. The Group will follow the enforcement of the various measures closely.

Jean-François CIRELLI,

Executive Vice Président, GDF-SUEZ


ROUND TABLE:ELECTRICITY, A GROWTH DRIVER IN THE BUILDING INDUSTRY


Nicolas PRISSETTE: Jean-Marc Dupeyrat, what are the

major components of the building challenge?

Jean-Marc DUPEYRAT: The stakes in building are very high, as the industry is behind two-thirds of France’s electricity demand. In addition, building is behind the largest growth dynamic on the electricity market (+2.7% per year, on average). Lastly, building is responsible for 40% of CO2 emissions. Moreover, it is important to note France’s somewhat unique situation. the role of electricity in end-consumption in the residential sector is very high compared to that of other European countries. This is due

its having chosen nuclear power and the rise connected with electrical heating. The impact on France’s power system is seasonal and the growing impact of specifi c uses has turned out to be a major contributor to daily peaks in demand. The use of appliances has signifi cant peak effects. UFE therefore recommends a global approach to energy consumption, combining thermal quality in buildings, high-performance energy systems and special infrastructures and optimisation of consumption modes, all the while taking into account the economic and environmental dimensions.

Nicolas PRISSETTE: You mentioned three components.

How does this play out, concretely?

Jean-Marc DUPEYRAT: UFE works toward three key ambitions in the building sector: • Improving the performance of electricity uses in building: UFE is in step with the ambitions of the Grenelle Process for the Environment and shares the ambitious objectives it sets out for new buildings, which have given rise, in particular, to a bioclimatic approach to architecture. As regards existing structures, it is the strong-willed and realistic policies that will need to be carried forth, taking into account diversifi ed situations.

• Speeding up the transfer of fuel to high-performance solutions: in electricity, UFE gives priority to heat pumps and inertia heating, rather than converters. One example of renovation that would combine several different drivers, such as rafter insulation, regulations and the heating system, would make it possible to achieve 43% progress in terms of energy effi ciency.

Jean-Pierre CHARDON, Vice-Chairman, FIEEC

Jean-Marc DUPEYRAT, Deputy Director, Energy Division France, GDF-SUEZ

Alain MAUGARD,

Chairman of the “Risks, Security and Safety” Section, General Council on the Environment and Sustainable Development, Former CSTB Chairman


It is also important to give priority to the development of low-consumption lamps and electroluminescent diodes and limit consumption on stand-by mode. • Limiting peak consumption or extreme-peak by using inertia, shifting operations to trough hours and giving priority to automatisms. The latter need to enable fi ne-tuned, personalised load management at client facilities by the suppliers, within their equilibrium range. .

Nicolas PRISSETTE: But should customers not be given fi -

nancial incentive to change their way of consumption?

Jean-Marc DUPEYRAT: Public policies are vital and need to be pursued along three different avenues : • creating a price signal that refl ects the electricity system’s actual costs, in particular during peak hours, and including in terms of CO2 emissions. The customer needs to receive an adequate signal offering incentive to invest, thanks to reasonable return times; • going beyond heating regulations, by fostering the ability to remotely steer each appliance and ensure compatibility between communications protocols; • take action with consumers by informing them and incentivising them, thanks to encouragement mecha-nisms.Lastly, the system needs to be rounded out by a series of measures such as training for each sector or R&D support.

Nicolas PRISSETTE: Jean-Pierre Chardon, can you say a

few words to introduce us to the sectors that you represent

and the action carried out by your profession?

Jean-Pierre CHARDON: The FIEEC brings together economic players involved in producing electrical wires, electronics and communications. The sector’s technologies provide structure and comple-ment electricity, and it is thinking along a wide variety of lines. Its work on energy effi ciency in all areas has reached a very advanced stage and, insofar as the FIEEC’s techno-logies are cross-cutting give it the clout, as an idea gene-rator, to lead toward a carbon-free economy and approach certain topics, such as healthcare or transport, differently.

Nicolas PRISSETTE: Let’s use domotics as an example.

Today, what are the actual development prospects for this

market?

Jean-Pierre CHARDON: This is a constantly-changing and particularly promising market today. Domotics, previously considered a luxury, is now a signifi cant source of energy savings.

Nicolas PRISSETTE: A lot of attention is being paid to the

Smart Grid. How do you approach this problem?

Jean-Pierre CHARDON: This is a very important topic, which has suffered from the lack of common defi nition. It is important to fi nd a shared defi nition and determine to which part of the grid it should apply, the expectations in terms of functionalities and the opportunities, from the economic standpoint. The electrically-powered vehicle will not be able to develop without greater intelligence in the network. There is a convergence in viewpoints with the UFE. The areas of complementarity are obvious and the FIEEC is in favour of incentive-based public policies. Political decisions remain to be made and the professions need to work together.

Nicolas PRISSETTE: You have just heard Jean-Marc

Dupeyrat discuss the over-riding issues in the building

sector and Jean-Pierre Chardon dwell on the need to

develop more automatic ways of functioning to better guide

electricity demand. How do you react to this?

Alain MAUGARD: Five or ten years ago, it was utopian to promote positive-energy building, whereas today, the industry can show its interest in it and take matters into its own hands. The sector holds an amazing amount of potential and the buildings of the future will consume less electricity, in a more rational manner. Consumers will become responsible and more demanding with regard to electricity generation. Consequently, they will be more economical in their consumption. The building sector will become a more rational systemic whole, involving a large number of highly-qualifi ed players who will offer new, multiple-layer, intelligent solutions. This change will, however, need to take into account society’s acceptance.

Nicolas PRISSETTE: The government made commitments

following the Grenelle Process for the Environment. Do you

think the building sector is now ready to meet its targets?

Alain MAUGARD: Quality work was done during the Grenelle Process. The measure on the 50kWh, adopted following the Grenelle, was but a step along the way. There is the aim to institute zero-carbon positive energy in new construction sites by 2020. This positive energy will offset the excess grey carbon in building construction today, to achieve neutral level carbon. The prospects are thus very signifi cant. In addition, the timetable for instituting the measures issued following the Grenelle Process is tight. To keep to it, we will need to fi nd combined solutions that use biomass and electricity both. In addition, the electrical sector needs to give priority to innovation, by investing in heat pumps and doing away with the formerly-used radiators.

Nicolas PRISSETTE: With regard to the building sector,

the measures from the Grenelle Sector refer primarily to

energy savings. This is, admittedly, an essential part of the

picture, but don’t you think that the CO2 aspect would give

bring out energy savings even more?

Alain MAUGARD: We have to analyse all of our zero-carbon solutions and adopt an intelligent production and consumption management approach. Buying electricity at the same rate, whatever the time of day, is a throwback to prehistoric times! We need to respect economic interest and create storage systems in buildings by implementing TOU purchasing and sales policies. To manage is, fi rst of all, to create a sense of responsibility in the population. This means fi nding incentivising prices.



Michel FRANCONY,

Chairman of the Executive Board, ERDF

Nicolas PRISSETTE: Michel Francony, how and why is

UFE’s 2020 scenario of interest to the grid manager?

Michel FRANCONY: The grid manager is interested in the good health of the sector to which it contributes. The initiative brings back to the fore the problem of load management all along the electrical coverage chain. The 3x20 system and intermittent energy distribution, alongside the emergence of new fl exible and even storable uses, have brought the issue of how to guarantee that supply and demand will match up in a system with the lowest environmental costs possible, back to the top of the list. The issue of cut-offs during peak hours and fl exible management systems is becoming central. The role of the grid will be fundamental in ensuring that the two systems match up. We will have intelligent networks.

Nicolas PRISSETTE: Michel Francony, AMM appears to

be the fl agship project for ERDF. In implementing it, will

ERDF not jeopardise some of its other responsibilities

where service quality (timeframes and connection) and grid

quality are concerned?

Michel FRANCONY: The distribution network’s workings are set to change and the profession is going to modernise. In intelligent grids, dual-communicating metres that send a signal upstream and downstream will be central to the grid. Implementing the project will require an investment of EUR 4 billion, which compares to the EUR 30 billion needed in the electrical system as a whole. As this implies, the grid accounts for as much as production in the electricity chain. However, it has been determined that a grid rate can fund the major infrastructure effort required, so as to achieve a high-quality grid and reach the 3X20 level.

Nicolas PRISSETTE: How do you see the place of regula-

ted players in the fi eld of energy control?

Michel FRANCONY: Grid managers are contributors in that the reduce losses on the grid by creating low-loss transformers at the European level. The installation of Smart Grids will also entail instituting a specifi c regulation system and, in particular, providing the right pricing information to cover the TURPE 4 Period, after 2011. Moreover, there is the issue of the connection between energy control in households and the role of network managers, which will involve bringing the market logic (effi ciency-economics services aimed at a customer segment) in line with public interest logic, around the institution of a smart metre.

Nicolas PRISSETTE: This morning, we talked about

electrical vehicles. How do you see ERDF’s contribution to

the development of the electrical vehicle?

Michel FRANCONY: This is a complex matter in that manufacturers want recharge infrastructures to be collective infrastructures, but made available to private users. However, depending on the situation and the techniques chosen, infrastructure spending will be different and it will be important to share costs, at least during the launch phase. Identifying the players that will support the costs thus remains an uncertain undertaking. In any case, smart grids will have to be designed as part of the local grids, ensuring vehicle recognition and feedback to suppliers thanks to information reporting systems, so that they can establish invoicing. These ingredients are already at the core of grid managers’ activities, and they are thus the parties best-suited to taking this task on. We just need to be careful to establish, beforehand, what should come from individual initiative on the one hand, and group initiative, on the other. If automobile manufacturers end up having to pay for all of the infrastructures, electrical vehicles will not be profi table. Technical developments of this kind do require funding. This point needs to be clarifi ed during the mission set out by the public authorities.


ROUND TABLE:AMPLIFYING FRANCE'S CO2 ADVANTAGE

John SCOWCROFT

Electricity can play a preponderant part in lowering CO2 emissions, by 60 to 80%, at the global level. EURELECTRIC, which represents the electrical industry at the European level, is looking at opportunities to ensure that activities in the electrical sector can become carbon-neutral by 2050. EURELECTRIC is confi dent that much of the solution for lowering Europe’s carbon output comes from the electrical sector. A declaration was recently signed by approximately 60 companies and CEOs from the electrical sector, committed to achieving carbon-neutrality by 2050. Their commitment was necessary for lowering CO2 emissions in the OECD zone. It is important to differentiate, in this respect, the concept of carbon neutrality from that of a total absence of carbon (“carbon-free”). The carbon capture systems of the future will be able to capture up to 95% of emissions, but there will always be some residue.

A major study was carried out by EURELECTRIC a few years ago, followed by another one still underway. The idea of the fi rst study as to show how to lower Europe’s emissions by 50% by 2050. To achieve this, a mid-term objective of 30% was set for 2030. It was demonstrated that a reduction in emissions would be possible at a cost acceptable to society if all available power generation options and technologies were used.The study did not stop at drawing up a roadmap toward a carbon-neutral future. It also analysed the impact of various scenarios on energy dependence and costs. The scenarios considered included: • an emissions-reduction policy aimed at energy effi ciency and renewable energies; • a scenario that primarily uses nuclear power and the CO2 capture system, which entails very high costs; • a broader scenario, referred to as the “electricity scenario”, which makes use of all existing technologies where electricity production is concerned, as well as the development of electro-technologies on the demand side (heat pumps, electrical vehicles, etc.), provided that they enable CO2 emission reduction.One of the major conclusions from the study, in EURELECTRIC’s view, is that carbon-removal in the energy sector will lead to carbon-removal across society. To take a concrete example, there is the electrical vehicle. Signifi cant market penetration for the electrical vehicle and hybrid car should create a signifi cant decline in the emissions generated b the transport sector. Incidentally, if all European cars became electrical, electricity demand in Europe would increase by 15%. However, this increase would not imply the creation of new facilities, as those in existence currently would be used more effi ciently. The study currently underway is based on two assumptions: the EU achieve its 20-20-20 targets and that the carbon capture system be commercially available from as early as 2020. Under that scenario, a roadmap will be issued, suggesting options in accordance with the most widespread scenarios. The document will look at a timetable and at the cost of developing the said technologies, the time it would take to create new production capacity, CO2 price trends in a fully-operational market, development infrastructures, the various means toward improving energy effi ciency, all assuming that there will be an operational market in Europe. It is important that the economical resources be available to achieve these targets.

Nicolas PRISSETTE: Philippe Torrion, do you think it is

still possible to reduce CO2 emissions in France by 2020,

considering the price of the kWh in our country, already

exceptionally-low?

Philippe TORRION: As the target is 32g of CO2 per kWh, it is understandable that there be some scepticism. However, comparing trends in demand upstream and the production from two EPRs, the additional output from existing facilities and the developments foreseen in RNE, the 70 TWh target can be reached. The key will thus be the commissioning of reactors and the consolidation of the existing nuclear facilities, as well as the extension of its life cycle. However, this will only be achievable if we keep peak demand under control, with price incentives or price offers that encourage a reduction in consumption. Uses can be deferred without lowering comfort levels, provided that a price signal is established, taking into account key factors such as CO2

John SCOWCROFT, Director, Environment and Sustainable Development Department, EURELECTRIC

Philippe TORRION, Director, Upstream-Downstream Optimisation and Trading, EDF

Jacqueline BOUCHER, Director, Economic Research Pricing and Market, GDF SUEZ

André ANTOLINI, Chairman, Authority on Renewable Energies, Vice-Chairman, UFE

Pierre-Marie ABADIE,

Director, Energy Affairs, DGEC, MEEDDAT


emissions. We need to revive price innovation, especially as we are going to have communicating infrastructures that will allow us to do far better than EJP or HP/HC.

Nicolas PRISSETTE: As to electricity generation in

particular, what energy mix do you foresee in France? Philippe TORRION: Reconciling nuclear production in France with a high percentage of RNEs is possible, provided that, at the same time, there are fl exible production facilities to follow the consumption curve and deal with fl uctuations in RNE production. Countries like Germany or Spin have integrated substantial levels of wind power into their energy mix. The key is to develop fl exible production facilities that will consist of cycles combined with gas. Gas supply will need to be fl exible in order to sustain electricity supply: this is a key point which is not currently guaranteed. Even with a substantial effort on keeping peak demand un-der control, we will have to develop extreme peak resour-ces to get through cold waves. However, the economic pre-requisites toward developing these resources are not yet fulfi lled, as of today. Returns from the market are far from being guaranteed. For this reason, we will need, under the supervision of the public authorities, and in coordination with the various operators, to quickly choose a solution and promote it at the European level in order to prevent unwanted players from slipping through the cracks.

Nicolas PRISSETTE: André Antolini, renewable energies

are, of course, strongly tapped in the European and French

targets for a massive reduction in GHG emissions. Can you

briefl y refresh us on what is expected?

André ANTOLINI: If France meets the fi rst two targets on renewable energies and energy control, then greenhouse gas emissions will be brought down by 36%, which is more than the European 3 x 20 target. The 23% proportion of renewable energies in end-consumption, which France needs to reach by 2020, are divided into two packages: • a heating package (amounting to an additional 10 Mtoe, approximately) including collective biomass, which is a considerable challenge. Collective heating, up to this point, had remained an orphan sector where public policy is concerned. Speaking of which, the Authority on Renewable Energies, which was advocating for a Heating Fund to be instituted, hails the Government’s recent decision to create the said fund. Individual heating (thermal solar, heat pumps, wood heating) is, meanwhile, being supported by the tax credit and requirements set out in the heating regulation. These tools need to be maintained, as they have proven their effectiveness. • high-impact action on electricity. Wind power, for instance, would require the installation of 25,000 MW, as compared to the 3,500 existent today. The penetration of wind energy in France is promising, but the indicators show that the number of building permits issued as of this day is in freefall. Hydraulic also has room for improvement.The UFE’s target, consisting of 32.7 Gigawatts by 2020 is in line with the Grenelle targets, provided that not too many non-fi nancial obstacles arise.In addition, it is important to add that there are projects on wind energy and that these are achievable. In order to reach the target on wind energy, 6,000 additional wind machines would need to be installed in France, tripling the current number.

Lastly, I would like to emphasise that by signifi cantly developing renewable energies, we would create wealth which, in turn, would create many jobs (in industry, building and servicesNicolas PRISSETTE: Jacqueline Boucher, France is part of

the regional electricity market in the Centre-Ouest region.

The market is in the midst of integration, with market

development between France and the Benelux countries

and future extension to Germany. Can you put France’s

development prospects in perspective as compared to that

of its neighbours?

Jacqueline BOUCHER: First of all, it is important to note that conditions are extremely different from country to country. In Germany, the facilities use coal to a signifi cant extent (45% of power generated) along with nuclear (25% of power generated). Considering the current plan to shut down nuclear power plants and the freeze on any further

development, the German government has given priority, over the past few years to a relatively ambitious programme in renewable energies (onshore wind energy, solar and biomass). As of today, there are more than 20 GW in wind energy installed (or more than 10 times more than in France, using facilities 30% more extensive). Likewise, over 3 TWh are already generated by the photovoltaic sector and 42 TWh (or 7% of production) from biomass. The government fully intends to continue on this dynamic, with special

From 10th Operational Committee Final Report

“Renewable Energies”

End-consumption breakdown


efforts in favour of offshore wind energy (between 10 and 12 GW announced by 2020), more moderate continuation in onshore developments (between 4 and 10 GW) and CO2 capture and sequestering technologies for the new coal facilities under development. The current situation in the Netherlands offers quite a contrast to that of Germany. First of all, electrical production is more focused on gas (around 65%, as compared to 24% on coal), while nuclear is relatively marginal (4%). Wind energy provides 4% of electrical production, as does biomass. Renewable developments had started off relatively quickly, from as early as 2003, but came to a screeching halt following a somewhat shaky subsidy policy. The subsidies resumed however, with a focus on onshore wind energy, small-scale biomass and photovoltaic power. substantial efforts are also expected in offshore wind energy, where there is talk of 3 to 6 GW. Like in Germany, the CO2 capture and sequestering projects on new coal facilities are expected to be kept part of the European energy revival plan. Lastly, Belgium is characterised by a relatively diverse and well-balanced system (56% nuclear, 27% gas and 13% coal). It has channelled most of its efforts on renewable energies toward biomass (2% of power generated) and wind (1%) as permits are diffi cult to secure and resources limited. All of this still provides only 3% of total power generation, however, and this is little compared to the 6% it had aimed to reach in 2010.

Nicolas PRISSETTE: The natural setting obviously

infl uences the development of renewable energies, but the

subsidy policy does as well. What major differences can be

seen between the countries, in terms of regional market?

Jacqueline BOUCHER: Two fundamentally-different sys-tems co-exist within the regional market. Belgium uses the quota system, whereas the other countries use a tariff buy-back system. In other words, Belgium’s energy sup-pliers need to prove, when delivering electricity, that they have supplied their customers with a certain amount of re-newable energy. If they have not generated it themselves, or if they have found it on the market, they are subject to a penalty. In other countries, the energy supplier is paid for the renewable energies it puts on the grid, above and beyond the electricity market price. The tariff buy-back system has led to very widespread development of on-shore wind energy and solar power in Germany, but has not yet had a major effect on Elian offshore, seeing the unattractive conditions it offered private investors until very recently. The buyback rate was also very positive, on biomass and onshore wind energy in the Netherlands, before the Ministry of Economic Affairs challenged it. Lastly, the green certifi cate system was largely benefi cial to major biomass in Belgium. On the ground, we are seeing a positive reaction from private investors seeing the drop in uncertainty (a buy-back price that adequately covers development costs is something highly-positive) or short return on investment times (which, in a sense, limits risks where quota systems are concerned).

Nicolas PRISSETTE: Pierre-Marie Abadie, what are the

major lines of the PPI report that has just been handed in

by the government?

Pierre-Marie ABADIE: First of all, Minister Borloo has expressed signifi cant interest in the fi ndings, which are central to the issues addressed by MEEDDAT and the Grenelle Process, and express regret at not being able to

be present, keeping by the MEF’s meeting. Three documents (PPI) are going to be published, on electricity, heating and gas. This fi rst-time initiative was very interesting, seeing the interactions between the three sectors. Like RNEs, the 23% target advocated during the PFUE needs to be reached. The PPI Report sets out the objectives and areas requiring more attention. It is important to be aware that each type of energy has its own weakness. The issue is thus to work together to ensure sustainable development including investments in transmission and distribution grids, sometimes at high costs. Each PPI also holds areas requiring more attention. It is the responsibility of electricity generators to acquire matter and ensure that it is adequately supplied. The reasoning is the same with wind energy. Regional planning can be one response, in that the system requires guaranteed locations. There is no single response and every form of energy is needed in order to reply to today’s objectives. Within the broader issue of the climate, thermally-powered facilities will experience deep-set change, with a shift to gas and lower CO2 emissions. Signifi cant investments are needed in nuclear power stations to maintain and ensure a long life-cycle for the facilities. The uncertainty on the demand and production sides is high, hence the need to ensure room for manoeuvre. Lastly, the 3 PPIs will be followed by, at least, two concrete projects. Peak is a technically-complex topic that needs to be studied. In addition, a more regional approach to regionalising the RNE development effort and bringing out the regions’ energy potential will be instituted, with the State and regions working in coordination.

Electricity generation by type


ROUND TABLE:THE PLACE OF FRANCE IN GREEN-TECH

Participing in the Round Table :

Nicolas PRISSETTE: Paris Mouratoglou, where is France,

industrially speaking, in the fi eld of renewable energies?

Paris MOURATOGLOU: The system that enabled the development of renewable energies across the world was invented in France, in 1955. An industrial turbine manufacturing sector developed from that point, as well as independent renewable energy generators, including EDF Energies Nouvelles, as a direct consequence thereof. The creation of a domestic market thus gave rise to an industry. The system has been copied by Spain, Italy, Portugal and the United States, on the hydraulic side, and later in wind energy and photovoltaic energy. All of these countries have built up a powerful wind material and solar panel industry. France, meanwhile, chose a call for tender system and responded to the issues quite late. When it instituted purchasing prices, it was too late, and this delayed the development of a wind machine manufacturing industry. France is also very behind in the photovoltaic sector, insofar as only one company, Photowatt, operates in the area. However, unlike wind energy, it is not too late to penetrate the photovoltaic sector market. The market’s development and the economic crisis make it possible to adapt new technologies adjusted to the future. France has many of the assets it needs to succeed, in particular, a powerful research and development sector, as well as a very effective research tax credit system.Lastly, EDF Energies nouvelles enjoys EUR 1 billion in capital and sales revenue amounting to EUR 1.5 billion, growth rates of 40% and 15,000 mGw in its portfolio. Its profi le is highly international and it specialises in wind and photovoltaic solar energy.

Nicolas PRISSETTE: Francis Bouquillon, how is photovol-

taic energy developing in France?

Francis BOUQUILLON: The market’s recent developments

are encouraging, even though France is lagging behind. The sector has improved qualitatively and initially targeted only retail customers. This is positive in the sense that the consumer is becoming more virtuous. The grid connection rate has increased to 2,500 per month. In addition, the quantitative trend show as a shift in the market, from the service-oriented to major professional players (supermarket roofs, factories). Synergies are to be noted, as a result, on our professional clients, between the renewable energy side and the energy effi ciency side.Lastly, MEEDDAT’s call for tender (300 mGw) deserves to be hailed: applying to the entire territory, it gives strong impetus to the market. The announcement on the intermediate rate of 0.45 on the facilities incorporated into existing buildings will revitalise the portion of the sector dedicated to service-oriented and industrial customers. In conclusion, we would like to underscore the new architectural component of photovoltaic energy, which should contribute to its renown with the general public.

Nicolas PRISSETTE: As an industrial player, Paris

Mouratoglou, how do you see the photovoltaic sector?

Paris MOURATOGLOU : Over the past two years, solar power is becoming very important in terms of annual investments. Soon, the amounts invested in the sector will match those dedicated to the fi eld of wind energy. Photovoltaic power is also likely to become a huge market, as the price of producing the said energy will decrease signifi cantly and, as a result, all buildings will have photovoltaic roofs. France simply must institute a solar production facility on its soil. The technological evolution of silicium and the emergence of thin layers are both positive factors. The research will ultimately create a production sector upstream, if the French domestic market remains consistent. In this sense, dialogue with the government is constructive and fruitful

Francis BOUQUILLON: It is true that the sector’s development needs to be sped up, by stimulating research and development, in order to achieve better performance. In addition, photovoltaic facilities need to be brought into the framework of electrical controls, for security and market credibility reasons.

Pierre-Marie ABADIE,

Director of Energy Affairs, DGEC, MEEDDAT

Francis BOUQUILLON,

Managing Director, SERCE

Olivier NORMAND, Senior Project Manager, European Institute of Energy

Research

Paris MOURATOGLOU,

Chairman, EDF Energies Nouvelles


Nicolas PRISSETTE: Olivier Normand, you work for one of

France’s main competitiveness clusters – Cap Energies –

and one of your fl agship projects is Premio, which actually

provides a prime illustration of one of the main lines of the

UFE 2020 Vision: cut-off and peak control. Can you tell us a

bit more about this project?

Olivier NORMAND: The Premio Project has come about just as the electricity grid is considering a shift toward greater fl exibility. It is a collaborative project designed to lower CO2 emissions and control demand for electricity, in particular during consumption peaks, at a territorial scale ranging from the two to the region. The chosen method is active demand management, through the aggregation of local resources in order to subdue electricity demand at selected times during the day. This collaborative project includes partners such as SMEs, major corporations, the Regional Council of the PACA region, which is funding 50% of the project, local players including users, shops and schools. We want the project to be participatory and the cut-off policy fully-aware. Premio does not want to stand in for current energy-savings measures, but tries to round them out, by promoting remote steering of technologies to reduce or displace demand when electricity fl ows are most costly, for instance in terms of CO2 emissions. A control unit will steer the systems (generation systems, storage) to cut off or defer consumption or generation at selected points in the day. It receives orders from a player upstream, whether technical or commercial, which places itself on the energy market, expressing a requirement in terms of cut-off, at chosen points in the day.

The basic plant is designed at the level of a small municipality, but can be steered by a much larger plant, which will aggregate the cut-off at several plants. An initial pilot experiment is starting this year, in Lambesc (13) and currently we are awaiting qualitative results, as the plant covers only one hundred customers or so.

Nicolas PRISSETTE: Pierre-Marie Abadie, how can the

public authorities support and sustain the development of

renewable energies in France and, more specifi cally, the

photovoltaic sector?

Pierre-Marie ABADIE: Where general policy is concerned, the most effective system for stimulating renewable

energies is the purchase requirement system, bolstered by the European Directive on Renewable Energies during the French Presidency of the European Union. It is a toolbox, including tariffs and calls for tenders. The idea is that the calls for tenders should be tailored to the sectors, depending on whether they are mature, economically in development or requiring specifi c controls on volumes and development procedures. It can also be tailored more toward territorial development aimed at a specifi c population. The purchase requirement, meanwhile, is aimed at economically- and technologically-mature markets. The over-riding challenge is to give greater visibility to calls for tenders to ensure sustainable development, in particular at the economic level. The industrial policy also involves research and innovation. A EUR 400 million fund has, for instance, already been entrusted to ADEME, which is launching calls for statements of interest, if necessary. Moreover, it is important to be able to deal with future-oriented topics and structure both roadmaps and research policies. The government is working to establish a strategic committee to better structure research strategies and better coordination on development initiatives. Regarding photovoltaic energy, MEEDDAT is holding constructive discussions with all of the players in the sector. The key challenge is to support the creation of new facilities. A good regulatory framework is needed, offering a response to local players. The second issue lies in the fact that the tariff is aimed at uses with high added value. It is not suited to more basic uses, which would deserve to be supported via an intermediate tariff.Lastly, the government supports research and development in establishments, alongside INES (EUR 25 million). The development of legacy platforms with the CDC, which provides EUR 30 million per year, and a demonstrator fund. This provides the sector with well-balanced support.An Energy Quiz is then offered to the audience, run by

Nicolas Prissette and Robert Durilly, UFE Chairman.


ROUND TABLE:TOGETHER TO ATTAIN THE 3X20 TARGETS


Nicolas PRISSETTE: Robert Durdilly, do you think that

France’s electricity sector, with its legacy speciality, fared

well in the Grenelle Process?

Robert DURDILLY: The Grenelle Process took up a number of powerful messages, but the question of peak energy was somewhat underestimated. It is important to progress on this topic and take it into account in all public decision-making as electricity is a driver for energy that mobilises several primary energies. It is thus a key instrument in energy policy. Moreover, UFE worked alongside other professional federations that share a positive vision of electricity, to implement it. Considerable efforts need to be made before we can be in control of the issue.

Nicolas PRISSETTE: Could you please each introduce your

sector and its contribution to UFE’s vision?

Bernard VADON: For the past three years, SERCE has been developing an action plan on sustainable development and on incorporating companies into the environment. The 3x20 package is of relevance to SERCE’s companies. They are not power generators and thus do not contribute to the emission-reduction target, but they do contribute to better consumption management. SERCE is present in renewable energies through its companies. Energy effi ciency has mobilised SERCE, stirring it to create an energy effi ciency label for its companies, which operate in multiple technologies (electrical and climate engineering). In 2008, it launched training for business managers in energy effi ciency. The programmes broaches key regulatory issues for France and Europe in order to offer its customers the best energy solutions. As of today, 300 business managers have been trained and 200 companies have received the SERCE Energy Effi ciency label.

Jean-Claude BONCORPS: FG3E brings together service companies working in energy and environmental effi ciency, through action aimed primarily at managing and operating

energy facilities. Its core business is thus in energy- and environmental effi ciency, through contracts lasting anywhere from 3 to 25 years. Performance guarantees are a key component of the business. In particular, FG3E has far-ranging experience in on-site service to the customer and in optimised management of a set of energies. Out of the three pillars of energy effi ciency – improvement works, effective energy systems management, and user behaviours – the FG3E’s companies offer signifi cant advantages. Moreover, special attention is being paid to environmentally optimising buildings.

Jean-Pierre CHARDON: GIMELEC brings together manu-facturers of electrical equipment and automatic systems, based in France. It works more specifi cally on perfor-mance and baseline consumption in infrastructures. More recently, the industry developed its contribution to mana-gement systems. GIMELEC also contributes to activities in the renewable energies sector, such as photovoltaic and wind energy. Moreover, it pushed for the institution of the CPE as part of the Grenelle Process, in order to establish up a business model that allow economies to fund the in-vestments they need. Alongside this, industries have been working on eco-design for a very long time, meaning on the environmental impact of infrastructures. The environmental profi le produced is being developed in order to show the consumer the environmental impact of products. Lastly, GIMELEC has been working to banish hazardous materials and institute recycling systems.

Nicolas PRISSETTE: Francis Lepers, how do you see the

development of renewable energies at your clients’ sites?

Francis LEPERS: FFIE is home to 5,000 companies working for service-sector and residential customers. Eager to identify new energies, FFIE enthusiastically joined UFE’s Sustainable Electricity Club. An FFIE Commission is already working on new energies. The FFIE promoted this new activity within the company, with very good results and wants to bolster companies’ decisions by offering them training and a broad offer based on consulting and project leadership. Customers have responded positively to this and good results have been achieved.

Nicolas PRISSETTE: Bernard Vadon, how do you see the

development of electrical grids in the future with both the

development of decentralised forms of generation and

new, more effective automatic systems for coupling the

upstream and the downstream?

Bernard VADON: The fi rst key is to upgrade grids in the face of growing demand. In addition, the development of decentralised generation facilities will continue as long as the buy-back rate is attractive. This raises the issue of strengthening the network around certain production areas, where consumption is relatively low and involves a change in the conception of grid management over the next few years, with relations between economic players based on cut-off and load management systems. The market is considerable for the manufacturers of the future.

Nicolas PRISSETTE: Jean-Claude Boncorps, how do you

see the major transfers from thermal uses toward electri-

city, as called for under UFE’s 2020 scenario?

Jean-Claude BONCORPS: Major changes need to be consi-dered. First of all, there is going to be a drop in consumption in thermal uses, to which we will have to adapt. The energy

Jean-Claude BONCORPS, Vice-Chairman, FG3E

Francis LEPERS, Chairman, FFIE

Jean-Pierre CHARDON,

Chairman, GIMELECRobert DURDILLY,

Chairman, UFE

Bernard VADON, Chairman, SERCE


mix resulting from the drop in renewable consumption will need to be managed very intelligently and assumes skills and know-how across the entire professional sector, to of-fer far more comprehensive, and better-optimised servi-ces. In addition, the development of heat pumps will make it necessary to provide maintenance and ensure adequate performance levels at the individual and collective levels.

Nicolas PRISSETTE: Jean-Pierre Chardon, what do you see

as the most promising technologies?

Jean-Pierre CHARDON: Clearly, the electrical sector’s professions need to act as the liaison between energy suppliers and users. GIMELEC will play a central part in optimising energy in industry, transmission, grid construction and electricity generation facility construction. It will also be important to identify technical and fi nancial solutions to make the grid more intelligent.

Nicolas PRISSETTE: The issue of the professionals’ skills

also needs to be addressed. What is your opinion on this

topic?

Francis LEPERS: This is a profession in which it is natural to cross paths with people passionately interested in the issue of sustainable development. The federations have a responsibility to train and encourage. They need to provide responses to professionals’ questions. To attract skills, the only answer is training.

Bernard VADON: The Authority, through its dealings with schools, has noted that the environment and sustainable development were highly attractive to young people? Professional associations do need to develop training programmes, but there is nothing to worry about as far as recruitment is concerned.

Jean-Pierre CHARDON: The problem is, fi rst and foremost, quantitative, considering the number of people who need to receive training in our companies. Secondly it is important to realise that young graduates are hardly attracted by technical professions. They just need to be given the desire to move toward the electricity industry and sector. Up to now, the system has trained too few people in these areas.

Jean-Claude BONCORPS: Engineers aside, it is diffi cult to change the image of industry and construction. High-impact action needs to be undertaken between the fi elds of education and the professional arena so that technical professions attract more young people, at every level of qualifi cation. Our sector has been lacking labour for twenty years.

Robert DURDILLY: The sector is in the throes of change. Funding and skills will be the two key factors to its success. The challenge will like in adapting skills in order to take on the future.


Laurence PARISOT

Chairperson, MEDEF

GREEN GROWTH IN FRANCE'S OFFER

Nicolas PRISSETTE: Laurence Parisot, in the major

challenge that the fi ght against climate change entails, do

France’s companies appear better-equipped to you than

their European counterparts?

Laurence PARISOT: France’s companies are very well-equipped, but those of competing countries are stepping up their positions. France enjoys a historical advantage on nuclear power and some of the country’s industrial stalwarts, like EDF, enjoy an outstanding reputation. The challenge will thus lie in carrying forth the efforts already undertaken and raising awareness of the other advantages which France enjoys.

Nicolas PRISSETTE: Are you not afraid that economic

constraints might shift the environmental challenges to

the back-burner, in particular by magnifying barriers and

diverging interests between business sectors?

Laurence PARISOT: It is diffi cult to answer in a nutshell. The crisis has triggered widespread social anxiety and the right balance between progress on the environmental front and the social impacts thereof is diffi cult to strike. This issue deserves to be taken up between social partners. Achieving the European Union’s 3x20 targets assumes radical change that could be costly to certain industries and have a strong social impact. Does this mean that we should cast aside the Brussels targets, though? Quite to the contrary, it is essential that we maintain them, as ambitious as they may be! On green technologies, we need to fi nd the right balance between supply and demand. Yet

the French system has not yet managed to identify cross-cutting training needs to create the right sectors and guide young people to them, or detect saturation levels.

Nicolas PRISSETTE: The UFE’s Vision 2020 shows that

electricity is a sustainable energy, capable of fulfi lling

growing energy needs, all the while emitting little or no

CO2. How do you see the Vision?

Laurence PARISOT: The approach is a very interesting one and the UFE’s example deserves to be followed, in order to show French companies’ ability to conceive of the future jointly. The vision is a corollary to the message put out by MEDEF, which recently re-thought its working structures. At any point, efforts to address this topic need to include and encompass sustainable development. It is out of the question that this priority be dropped today! The major event that shook up the world recently is the general view of the environmental and climate challenge that needs to be taken up, via new energies and new way of producing. The know-how of companies in the electricity sector on these issues is key to responding to a joint economic strategy and bringing Vision 2020 to life.

Nicolas PRISSETTE: If we were to summarise MEDEF’s

approach to promoting France, what would the major

strategic thrusts be?

Laurence PARISOT: Our aim is to ensure that the country’s economic assets can be clearly-identifi ed from abroad and shared by France’s economic players. For years now, the country’s speciality was luxury and the traditional image of France as a place of refi nement. Why not add a specifi c and modern dimension to this, build around energy and sustainable development? If France’s enterprises show a consistent front, France’s economy will be seen as one capable of taking up any challenge that comes before it.

NOTES

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Documents

Minutes of Annual Conference - ufe-electricite.frufe-electricite.fr/IMG/pdf/colloque-ufe-va-bd-1.pdf · Minutes of Annual Conference 26 May 2009 ... Taking the opportunity of its