Press review

UFE/Press review of 04/10/2017

Clean Energy Package: The French Union for electricity calls French Institutions to take action.
While the discussions about the Clean Energy package are in full swing in the Council and the European Parliament, the French Union of Electricity organized on October 3rd a press conference, calling for the French Institutions to take action and make sure that the national positions are heard in the negotiations. Christine Goubet-Milhaud, President of UFE, welcomes the “very positive steps” on many aspects of the legislative package but draws the attention on three major issues. First, the French capacity mechanism would be likely to be questioned every year, even though it was approved for 10 years by the European Commission in November 2016. Second, there are overlaps between energy efficiency, renewables and CO2 price objectives: the European Commission wants to set an Environment Performance Standard of 550gCO2/kWh within the capacity mechanism, a “counterproductive and inefficient measure, because it is mixing security of supply objective with GHG emission reduction objectives”. This would “weaken the carbon market even more”, while an ambitious reform of the EU ETS market could increase the carbon price to a level sufficient for the most polluting power plants to exit the market. Finally, concerning the management of the the electricity market, the French Union for Electricity believes it is “crucial not to separate operational and political responsibility. These two should remain in the TSO’s hands”.
AEF, October 4th
The European Commission endorses four support schemes for renewable energy in France
On September 29th, the European Commission approved four schemes to support the production of renewable energy in France, which should enable France to deploy 7 GW additional RES capacity in order to reach its 23% RES target in 2020. Such support schemes are targeting onshore wind, solar on buildings and on the ground. A provisional budget of 8.5 billion euros over 20 years will be dedicated to it.
European Commission on September 29th and Contexte, October 2nd and October 6th
The 2018 Draft Social Security Financing Bill fosters the “purchase of electric vehicles.”
The French 2018 Draft Social Security Financing Bill fosters the “purchase of electric vehicles” for companies in its Article 13 entitled “greening of the taxation on company vehicles”. According to the explanatory statement, “in order to fight against air pollution and global warming, this measure aims at adapting the taxation on company vehicles in order to better incentivize the purchase of less polluting vehicles.
Contexte, October 3rd
Eurelectric presented a study to enhance the debate on the EPS
Presented at the conference “The Clean Energy Transition” organised by Eurelectric in Brussels on September 26th, this study highlights the unintended economic consequences of introducing a emission performance standard rule in capacity markets. Proposed by the European Commission in its Electricity Regulation recast, this 550g rule would apply to generation assets participating in capacity markets. Carried out by the independent consultant Compass-Lexecon, this study concludes that the 550g rule would lead to additional costs for the energy transition, especially for the end-consumers. Moreover, by closing peaking generation assets to be replaced by new gas power generation plants, this measure would increase gas dependency and weaken the energy security of supply. Lastly, the investments in new power generation assets risk diverting investments away from renewables and other clean energy technologies.
Eurelectric, September 25th and Contexte, September 26th
Demand-side response: a flexibility potential to be (re)developed in France
According to a study published by the French environment and energy management Agency (ADEME) on September 26th, the potential of electricity demand response in the industry and tertiary sectors is estimated to be “between 6.5 and 9.5 GW”. The main obstacles to the development of additional capacities of demand-side are mostly economic (remuneration of capacities) and organizational. Indeed, the distributed load shedding capacities (small tertiary sites and small industry) are available for higher remuneration than 60€/kW/year (against 30€/kW/year in metalworking, paper and chemical industries). For the record, the development of demand response addresses a two-fold challenge: to bring flexibility to the electric system to manage peak demand and offer companies a new form of remuneration and improvement of their energy performance.
Ademe, September 26th
Emmanuel Macron, in favour of a “significant carbon price floor”
During his speech at Sorbonne on September 26th, Emmanuel Macron presented its initiative for a “sovereign, united and democratic Europe”, with a part dedicated to the energy transition. The President declared that Europe should “remain at the forefront of the ecological transition”, while calling to set “a fair carbon price” at European level of at least €25 to €30, to support the transformation of the economy and the reconversion of specific sectors. In order to protect industries at risk of carbon leakage, the President called for the implementation of a “carbon boarder tax”. Finally, Emmanuel Macron mentioned the importance of interconnections and the reform of the energy market, as well as the energy transition contracts, to ensure an ambitious transition at the European level.
French Permanent Representation to the EU, September 26th
Industry, Research and Energy Committee (ITRE) of the European Parliament, October 11th and 12th, Brussels:
- Discussion on the draft report “Accelerating Clean Energy Innovation” (11/10)
- Vote on the draft report on the Energy Performance of Buildings Directive (11/10)
- Exchange of views with Ms Mariya Gabriel, Commissioner for Digital Economy and Society on Cybersecurity package and free flow of non-personal data (11/10)
- Discussion on the amendments to the Electricity Regulation and Directive, Risk-Preparedness and ACER regulations (12/10)

Environment, Public Health and Food Safety Committee (ENVI) of the European Parliament, October 11th and 12th, in Brussels:
- Vote on the draft opinion “Accelerating Clean Energy Innovation” (11/10)
- Exchange of views with Mr Maros Sefcovic, Vice-President of the Commission, responsible for Energy Union (11/10)
- Exchange of views with Mr Jyrki Katainen, European Commission Vice-President responsible for Jobs, Growth, Investment and Competitiveness (12/10)

Energy Working Party, Council of the EU, October 12th , 17th and 19th in Brussels
- Discussion on the Renewable Energy Directive(12/10)

Environment Working Party, Council of the EU, October 16th, 23rd and November 6th and 8th, in Brussels

Trilogue Council/European Parliament/European Commission, October 12th, Brussels:
- Examination of the EU-ETS reform

Environment Council of Ministers, October 13th, Luxembourg :
- Discussion on the effort-sharing legislative proposal (non-ETS) and LULUCF.
- Discussion to prepare the COP 23
Proposition du Conseil du 29/09 et Contexte du 04/10 du 06/10/2017

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