Press review

UFE/Press review of 02/12/18

The government unveiled the main lines of the French multiannual energy framework (PPE)

On November 27th, Emmanuel Macron and François de Rugy presented the main points of the PPE. For the President of the French Republic, this roadmap must meet the main objective of "phasing out fossil fuels". The government reaffirmed its commitment to close the last four coal-fired power plants by the end of his mandate and to postpone the 50% nuclear target in the electricity production to 2035. To achieve this objective, the government is proposing to close "fourteen 900 MW reactors" between 2020 and 2035. However, in order to limit the social and economic consequences, the Government announced that no site would be "completely" closed.
Regarding renewable energies, "their rise in power will happen and in no way linked to the pace of nuclear power outage in the coming years", the President said. As a result, the capacity of the photovoltaic park should increase from 8.4 GW to 40 GW in 2028 and that of wind power from 14.3 GW to 35 GW. For offshore wind, 2.5 GW of offshore turbine projects are expected to be awarded between 2020 and 2024. To support the growth of renewable energies, the executive promised 71 billion euros in support over the PPE period (2019-2028), with 20 billion euros committed to new projects.

Source: Le Monde and AEF, November 27th, 2018
Support for charging stations included in the French Mobility bill
Read more about it... The French Mobility bill (LOM) provides for financial support up to 75% of the connection costs of charging infrastructures (Article 19), through the public electricity network usage tariff (Turpe). According to the impact assessment of the bill, the estimated cost reach 100 to 150 million euros, and could affect consumers' electricity bills if "possible investment reallocations are decided by Enedis and approuved by the National Regulatory Authority (CRE)". On November 22nd, the French Union of Electricity (UFE) published a position paper on this bill. Noting this impact on consumers' electricity bills, UFE asks the financial support needed for public charging infrastructures to come from a "Zero Emission Mobility" fund. Such a system would prioritise public support and improve the readability of policies to support clean mobility. UFE also calls for the creation of consultation bodies involving the actors of electromobility as well as all network operators, and finally suggests the revision of the rules on right to plug implementation.
Source: Contexte, November 22nd, 2018 and UFE’s position paper on the Mobility bill of November 22nd, 2018
Heavy industry united in the fight against climate change
The Energy Transitions Commission (ETC), a group of international actors, mostly coming from energy-intensive industries, published a report entitled "Possible Mission" in which it is estimated that carbon neutrality in the industrial and heavy transport sectors is "financially technically possible by 2050 in developed countries and by 2060 in developing countries”. These Paris Agreement objectives will be partially achieved through "electrification of uses, manufacturing processes and transport", reports the Journal de l'environnement. Decarbonation will be made possible by "the massive use of hydrogen and renewable energies, with biomass in the lead". According to the ETC, the total cost for the world economy would be "less than 0.5% of GDP by the middle of the century", and could be further reduced through energy efficiency, the development of the circular economy, and the reduction of carbon intensive transport modes. To accelerate the energy transition of these sectors, ETC calls for the implementation of "appropriate carbon pricing" and "standards to improve the energy efficiency and carbon intensity of industrial processes".
Source: Journal de l'environnement of November 20th, 2018
Brexit: the political declaration on the future EU-UK relation sets an energy chapter

At the European Council on November 25th, EU 27 leaders endorsed the draft Withdrawal Agreement on Brexit and the draft political declaration setting out the framework for the future relationship between the EU and the UK. A chapter dedicated to energy is included in the draft declaration, showing the willingness of both parties to continue the cooperation to deliver an affordable, clean and competitive energy. Thus, EU27 leaders calls for the creation of a framework “to facilitate technical cooperation”, especially regarding the efficient use of interconnectors. The possible linkage between the UK national greenhouse gas emissions trading system and the EU-ETS system is also mentioned. Lastly, the political declaration highlights the need for cooperation between Euratom and the future British framework. The Withdrawal Agreements will be voted at the House of Commons on December 11th and by the European Parliament before March 29th, 2019, date of the effective Brexit and start of the transition period, that will last until December 31st, 2020.

Source: Enerpresse, November 27th, 2018
The European Commission wants to set a carbon neutrality target by 2050

On November 28th, ahead of the COP24, the European Commission published its strategic vision for a climate neutral economy by 2050 in a communication named “A Clean Planet for all”. Considering that the current policies will only account for a reduction of 60% of the greenhouse gas emissions by 2050, eight scenarios are presented, aiming for an emission reduction of 80% to 100%, as set in the Paris Agreement. Seven building blocks are introduced to accelerate the decarbonisation, starting with energy efficiency, the deployment of renewables and clean mobility. The communication foresees that 80% of the electricity will come from renewable energy sources in 2050, allowing for a deep decarbonation of other sectors such as heat or industry sectors. The role of networks, of circular economy and bio-economy are also highlighted, in parallel to the just transition issues. The EU Member States and the European Parliament will consider this communication to set the ambition for the EU, ahead of the Sibiu Summit in May 2019 and the EU’s contribution to the UNFCCC as requested by the Paris Agreement, by early 2020.

Source: Press release, European Commission and AEF, November 28th, 2018
Eurelectric study: a carbon neutral power sector is now possible at “lower cost”
On September 27th, Eurelectric organized a conference dedicating to the acceleration of investments in clean technologies. In this context, Francesco Starace, president of Eurelectric and CEO of ENEL, presented the result of the latest Eurelectric study, “Decarbonisation Pathways”. The conclusions highlight the role of electrification in the decarbonisation of the European economy to reach the greenhouse gas emissions reduction of 80 to 95% by 2050. The most ambitious scenario (-95%) previews an electrification rate of 60% by 2050, mainly in the building and transport sectors. Eurelectric study also foresees an electricity mix composed by 80% of renewable energy sources by 2045, allowing to move towards a carbon neutral power sector. To be successful, this transition will require key enablers: a strong political commitment, an active involvement of citizens, an adequate market design, a smarter distribution grid and a just transition.
Source: Press release, Eurelectric, November 27th, 2018

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