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Energy Policy Review
France 2021
3FOREWORD
Foreword
The International Energy Agency (IEA) has conducted energy policy reviews of its member countries since 1976. This peer review process supports energy policy development and encourages the exchange of international best practices. By seeing what has worked - or not - in the real world, these reviews help to identify policies that can deliver concrete results. As a member of the IEA for almost three decades, France has been instrumental in guiding international efforts to accelerate clean energy transitions. France has demonstrated important leadership in global climate negotiations, notably with the landmark ParisAgreement in 2015 and
in promoting green finance. I also highly value the strong engagement with IEA activities that we are seeing from France's Minister for Ecological Transition, Barbara Pompili, and her staff at the Ministry. This close cooperation was evident in the preparation of this report as well as for a recent joint study the IEA published with France's transmission system operator, RTE, which examined how power systems could operate with very high shares of variable renewables. France was among the first countries in the world to adopt an energy transition framework with a National L ow -Carbon Strategy and a 10-year investment plan for the energy sector. In 2019, France enacted into law its goal of reaching net zero emissions by 2050. However,France
is behind schedule on its energy transition targets, despite important reforms being underway. While its power sector emits relatively low quantities of carbon, its overall energy consumption is dominated by fossil fuels, resulting in rising emissions, notably from transport.France's nuclear fleet is ageing
and maintaining its low-carbon power generation will require timely decisions about the future electricity mix along with an acceleration of clean energy investments. France's economic recovery plan ("Plan Relance") and "France 2030" investment plan have earmarked unprecedented levels of funding for sustainable mobility, building re trofits, hydrogen, nuclear power and other technologies. To guide progress in these areas, the government needs to refresh its 2016 national energy research strategy. France has considerable work ahead on the road to net zero. It needs to focus on implementation, reviewing progress to date, and increasing co-ordination across the government. As the European Union implements its 55% emissions reduction target,France will need to increase its
2030 targets for emissions reductions, share of renewables
and sector -by-sector energy efficiency. I strongly believe this report can help France advance its energy and climate goals while ensuring fairness, energy security and economic growth. The IEA will continue to work closely with France as it moves ahead with its transition.Dr. Fatih Birol
Executive Director
International Energy Agency IEA. All rights reserved. 5TABLE OF CONTENTS
ENERGY INSIGHTS
Foreword ........................................................................1. Executive summary ........................................................................
.............................11 Increased climate focus ........................................................................ .............................11Slow progress of France's energy transition .....................................................................12
Prioritising implementation ........................................................................ ........................13Clear milestones for net zero and targets for 2030 ...........................................................14
Policies for the net zero pathway ........................................................................
..............15 Electricity market reforms ........................................................................ ..........................15Carbon pricing and energy tax reforms ........................................................................
.....16Sustainable recovery will be an opportunity ......................................................................16
Security of France's clean energy transition .....................................................................17
Key recommendations ........................................................................ ...............................182. General energy policy ........................................................................
.........................19 Country overview ........................................................................Energy supply and demand
.......................21 Key institutions ........................................................................Energy transition strategy and targets ........................................................................
......27Territorial and regional energy planning ........................................................................
....29 EU Climate Law and the role of the National Energy and Climate Plan ...........................30Energy and carbon pricing and taxation ........................................................................
....31 Green budgeting ........................................................................People
-centred transition ........................................................................ ..........................33 Assessment ........................................................................ Recommendations ........................................................................ .....................................38ENERGY TRANSITION
3. Climate change ........................................................................
....................................41 Overview ........................................................................Energy-related CO2 emissions ........................................................................
..................42CO2 emissions drivers and carbon intensity .....................................................................43
Emissions reduction targets ........................................................................ ......................45 Governance and compliance ........................................................................ .....................49 Climate finance ........................................................................ ..........................................50 IEA. All rights reserved.TABLE OF CONTENTS
6Adaptation and resilience to climate change ....................................................................52
Assessment ........................................................................ Recommendations ........................................................................ .....................................584. Energy efficiency ........................................................................
.................................59 Overview ........................................................................Energy intensity and energy savings ........................................................................
........60Energy efficiency targets and policies ........................................................................
.......62Policies and progress by sector ........................................................................
................64 Assessment ........................................................................ Recommendations ........................................................................ .....................................775. Renewable energy ........................................................................
...............................79 Overview ........................................................................Progress towards renewable targets ........................................................................
.........80Trends in renewable energy by sector ........................................................................
......82Policies and measures
..............................84 Renewables in electricity ........................................................................ ...........................84Renewables in heating and cooling ........................................................................
..........91 Renewables in transport ........................................................................ ............................93 Assessment ........................................................................ Recommendations ........................................................................ .................................. 1026. Energy research, development and innovation ................................................... 105
Overview ........................................................................ ................................................. 105IEA framework for energy innovation policy ................................................................... 106
Key energy innovation priorities ........................................................................
............. 107Main actors shaping France's energy innovation ........................................................... 107
A. Funding for energy R&D and innovation.................................................................... 109
B. Knowledge management ........................................................................ ................... 111 C. Support for innovation and market creation in strategic technology areas ............... 114D. Tracking progress of energy innovation .................................................................... 117
Recommendations ........................................................................ .................................. 121ENERGY SECURITY
7. Electricity........................................................................
........................................... 123 Overview ........................................................................ ................................................. 123Electricity supply and demand ........................................................................
................ 124 Electricity trade ........................................................................ ....................................... 125 IEA. All rights reserved. 7TABLE OF CONTENTS
Electricity demand ........................................................................ .................................. 128 Electricity policy ........................................................................ ...................................... 130 Market reforms........................................................................ ........................................ 130Electricity security and emergency measures ................................................................ 136
Crisis management and emergency response .............................................................. 141
Assessment ........................................................................ ............................................ 142 Recommendations ........................................................................ .................................. 1478. Nuclear ........................................................................
............................................... 149 Overview ........................................................................ ................................................. 149The role of nuclear in France's energy transition ........................................................... 150
Outlook for nuclear energy ........................................................................ ..................... 150Modernisation and long
-term operation ........................................................................ . 153The outlook for nuclear new build ........................................................................
.......... 154Financing nuclear and electricity market design ............................................................ 155
The nuclear fuel cycle, research and development ....................................................... 157
Assessment ........................................................................ ............................................ 158 Recommendations ........................................................................ .................................. 1619. Natural gas ........................................................................
........................................ 163 Overview ........................................................................ ................................................. 163 Gas market structure ........................................................................ .............................. 168Networks and
tariffs ........................................................................ ................................ 168Gas policy and market regulations ........................................................................
......... 170 Assessment ........................................................................ ............................................ 178 Recommendations ........................................................................ .................................. 18010. Oil ........................................................................
..................................................... 183 Overview ........................................................................ ................................................. 183 Oil policy ........................................................................ ................................................. 187 Market structure ........................................................................ ...................................... 189 Oil infrastructure ........................................................................ ..................................... 190 Oil emergency policies ........................................................................ ........................... 193 Assessment ........................................................................ ............................................ 197 Recommendations ........................................................................ .................................. 199ANNEXES
ANNEX A: Organisations visited ........................................................................
............ 201ANNEX B: Review team and preparation of the report .................................................. 203 IEA. All rights reserved.
TABLE OF CONTENTS
8ANNEX C: Energy balances and key statistical data ..................................................... 205
ANNEX D: International Energy Agency "Shared Goals" .............................................. 209
ANNEX E: Glossary and list of abbreviations ................................................................ 211
LIST OF FIGURES, TAB
LES AND BOXES
Figures
Figure 2.1 Map of France ........................................................................ ......................20 Figure 2.2 Overview of France's energy production, supply and consumption, 2019 .22 Figure 2.3 Total energy supply in France by source, 2000-20 .....................................22 Figure 2.4 France's energy production by source, 2000-20 .........................................23 Figure 2.5 Share of total energy supply produced domestically in France by ................ energy source, 2000-20 ........................................................................ .......23 Figure 2.6 Share of total energy supply by source in G20 countries, 2019 .................24 Figure 2.7 Total final consumption in France by sector, 2000-19 ................................25 Figure 2.8 Total final consumption in France per sector and per fuel, 2019 ................25 Figure 2.9 National, regional and local plans for the energy transition ........................30 Figure 3.1 Greenhouse gas emissions in France by sector, 1990-2019 and targets ..42 Figure 3.2 France's energy-related CO2 emissions per sector, 2000-20 .....................43 Figure 3.3 France's energy-related CO2 emissions by source, 2000-19 .....................43 Figure 3.4 Energy-related CO2 emissions and key drivers in France, 2000-20 ...........44 Figure 3.5 CO2 intensity per GDP* in France and IEA countries, 2000-19 ..................44 Figure 3.6 CO2 intensity of electricity and heat generation in France and selected ....... IEA countries, 2000-19 ........................................................................ ........45 Figure 3.7 France's path to climate neutrality under the revised National Low-CarbonStrategy, 2005
-50 ........................................................................ ................47 Figure 3.8 France's carbon budgets under the National Low-Carbon Strategy ...........48 Figure 3.9. Losses from extreme weather events in EU countries and the ..................... United Kingdom, 1980-2019 ........................................................................ 52Figure 3.10 Emissions of air pollutants in France, 2000-19 ...........................................54
Figure 3.11 Concentrations of air pollutants in France, 2009-18 ...................................54
Figure 4
.1 France's energy demand and key demand drivers, 2000-19 .....................60 Figure 4.2 Energy intensity per GDP in selected IEA countries, 2000-18 ...................60Figure 4.3 Energy intensity per capita in IEA countries, 2019 .....................................61
Figure 4.4 Energy savings by sector in France, 2000-18 .............................................61
Figure 4.5 Total final consumption in France by sector, 2000-19 ................................62 Figure 4.6 France's primary and final energy consumption, 2000-18 and targets .......63 F igure 4.7 Buildings energy demand in France by source, 2000-19 ............................64 Figure 4.8 Residential energy consumption in France by end-use, 2019, and by .......... source, 2000-19 ........................................................................ .................65Figure 4.9 District heat supply in France by source, 2000-19 ......................................66
Figure 4.10 Transport total final consumption in France by fuel, 2000-19 .....................69 Figure 4.11 Total fleet of electric cars and charging points in France, 2010-20 ............69 Figure 4.12 Industry total final consumption in France by source, 2000-19 ..................72 Figure 4.13 Industry total final consumption in France by subsector, 2019 ...................72Figure 5.1 France's renewable energy by sector, 2019 ...............................................81
IEA. All rights reserved.
9TABLE OF CONTENTS
Figure 5.2 France's progress towards 2020 and 2030 goals for renewable ................... energy deployment ........................................................................ ..............82Figure 5
.3 Historic trend of renewable energy in total final energy consumption ........... in France, 2000 ...............83 Figure 5.4 Renewable energy consumption by sector in France, 2019 .......................83 Figure 5.5 Renewable electricity generation in France, 2004-20 .................................85 Figure 5.6 France's renewable electricity budgetary commitments (20 years) ............87 Figure 5.7 Renewable energy in heating and cooling in France, 2004-19 ...................91 Figure 5.8 Renewable energy in transport in France, 2004-19 ....................................94 Figure 5.9 Renewable energy in transport in IEA countries, 2019 ...............................95 Figure 6.1 The IEA's four functions of a successful innovation ecosystem for ............... energy ........................................................................ ............................... 106Figure 6.2 Energy innovation ecosystem in France .................................................. 108
Figure 6.3 Energy-related public RD&D budget by sector in France, 2009-19 ......... 109 Figure 6.4 Energy-related public RD&D spending per GDP in IEA countries, 2019* 110 Figure 6.5 Energy-related R&D spending by globally listed companies ......................... headquartered in France, by sector, 2015 -20 .......................................... 111 Figure 6.6 Energy patenting trends in France (left) and contributions to global ............. patenting (right) ........................................................................ ................. 113 Figure 6.7 Early-stage venture capital investments in clean energy start-ups in .............France, by sector, 2010
-20 ....................................................................... 116 Figure 7.1 France's electricity generation by source, 2000-20 ................................. 124 Figure 7.2 France's electricity net trade (imports/exports), 2000-19 ......................... 126Figure 7.3 Electricity infrastructure of France ............................................................ 127
Figure 7.4 Electricity demand in France by sector, 2000-19 ..................................... 128 Figure 7.5 Share of electricity in total final consumption in IEA countries, 2019 ...... 129Figure 7.6 Electricity generation for IEA countries, 2020 .......................................... 129
Figure 7.7 Electricity prices for France and selected IEA countries, 2000-20 .......... 134 Figure 7.8 Electricity industry and household prices in IEA countries, 2020 ............ 135 Figure 8.1 Nuclear power generation in France, 2000-20 ......................................... 149 Figure 8.2 History of commissioning pressurised water reactors in France, .................. 1977-99 ........................................................................ ............................. 153 Figure 8.3 Projections for the levelized cost of electricity in France by technology .. 154
Figure 8.4 Key actors in the French nuclear sector ................................................... 157
Figure 9.1 Share of natural gas in France's energy system, 2000-20 ...................... 163 Figure 9.2 France's natural gas net imports by country, 2000-19 ............................. 164 Figure 9.3 France's natural gas demand by sector, 2000-19 .................................... 165 Figure 9.4 Industry and household natural gas prices in IEA countries, 2020 .......... 169 Figure 9.5 Natural gas prices in France and selected IEA countries, 2000-20 ......... 170Figure 9.6 Gas infrastructure in France ..................................................................... 172
Figure 10.1 The role of oil in supply, electricity and consumption in France, ................... 2000-20 ........................................................................ ............................. 184 Figure 10.2 France's crude oil net imports by country, 2000-19 ................................. 184
Figure 10.3 France's oil products production, 2000-19 ............................................... 185
Figure 10.4 France's oil products consumption, 2000-19 ........................................... 185
Figure 10.5 France's oil products net trade by country, 2000-19 ................................ 186Figure 10.6 France's oil demand by sector, 2000-19 .................................................. 187
Figure 10.7 Price comparisons for automotive diesel, unleaded gasoline (95 RON) ....... and light fuel oil in the IEA, 3Q 2020 ........................................................ 190Figure 10.8 Oil infrastructure in France ....................................................................... 191 IEA. All rights reserved.
TABLE OF CONTENTS
10Figure 10.9 Stockholding system in France ................................................................ 196
Figure 10.10 Emergency oil stocks in France by type, 2010 -20 .................................... 196 Ta bles Table 2.1 Main targets and policies and measures in the multiannual enrgy plan .....2020 ........................................................................
29Table 2.2 Evolution of domestic consumption taxes between 2013 and 2020 ...........32 Table 3.1 France's targets for reducing emissions of pollutants for 2020 and 2030 ..54 Table 5.1 France's renewable energy targets by sector for 2020 and 2030 ...............81 Table 5.2 France's targets by fuel for the electricity mix up to 2035 ...........................84 Table 5.3 Targeted promotion of renewable electricity capacity (GW) .......................85 Table 5.4 France's targets for renewable heat under the PPE 2020 (TWh) ...............92
Table 6.1 Mission Innovation - Spending overview ................................................. 110
Table 7.1 Structure and evolution of electricity generating capacity in France........ 125Table 8.1 Nuclear power reactors in France ............................................................ 151
Table 9.1 Entry interconnection capacities of the French gas network (GWh/d) ..... 173 Table 9.2 Exit interconnection capacities of the French gas network (GWh/d) ....... 173 Table 9.3 Liquefied natural gas terminals in France, 2020 ...................................... 174 B oxes Box 5.1 Technical conditions for a power system with a high share of renewables ... in France towards 2050 ........................................................................ .......86Box 6.1 France's national hydrogen strategy ........................................................ 116
Box 7.1 The restructuring of the French utility EDF .............................................. 132
Box 7.2 Towards a consumer-centred clean energy transition ............................. 135 IEA. All rights reserved.
11ENERGY INSIGHTS
1. Executive summary
France has been an early thought leader of the global energy transition. As host of the COP21 and the Paris Agreement, France is widely seen as a frontrunner in the energy transition by the international community.France
benefits from decarbonised electricity and the lowest per capita emissions of advanced economies thanks to the role of nuclear energy, which accounted for 71% of its power mix in 2019, and the role of hydro power (10%). France's decarbonisation framework, anchored in the Energy Transition Law of 2015, builds on the National Low-Carbon Strategy for 2050 (Stratégie Nationale Bas-Carbone, SNBC), with targets for the reduction of fossil fuel use and emissions by sectors under three five -year carbon budgets out to 2034. In the energy sector, actions are implemented by two successive five-year energy investment plans (la programmation pluriannuelle de l'énergie, PPE). Building on the SNBC and the PPE, regions are implementing their own climate and energy transition goals under the regional plans for spatial planning, sustainable development and equality. At the local level, municipalities are working on their c limate air and energy plans.In 2021, France is not yet on track to
reach its targets for energy efficiency, renewable energy or emissions reductions, that were agreed in 2015. France should be able to catch up in the coming years, if the important reforms which are under way are implemented across the energy sector. As foreseen in the PPE, a significant acceleration in investment in the clean energy transition is needed to achieveFrance's energy and climate targets by
2030. Commendably, the government adopted a historic
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