The latest from France – last month in recap
- Power generation – Electricity generation in France has reached its highest level since 2019, with 272 terawatt hours (TWh) being generated in the first six months of 2024., This should confirm the t! rend seen in 2023, after the 2022 energy crisis and its unprecedented rise in prices. RTE, France’s Transmission System Operator, has identified several reasons for increased generation: Hydroelectricity is the leading source of renewable energy in the country. Dams were able to take advantage of the continuous rainfall in winter and spring. Hydropower plants’ output was exceptionally high in the first half of the year (up 37% on last year +11.1 TWh; and 13% on the 2000-2020 average). Moreover, nuclear generation continues to recover from the stress corrosion issues, which saw several reactors shut after cracks were detected… Nuclear generation is up 12 percent on the same period last year (+19.1 TWh), but still 14 percent below the 2000-2020 average. The other main renewable sources grew steadily, with wind power generating 25.5 TWh and solar power 11.4 TWh.
- Cost increase – The projections for the gross cost of electricity generation in France up to 2035 were revised upwards by RTE as the need for electricity grows due to higher climate ambitions. The total would hit 46 billion euros in 2030 and 50 billion euros in 2035. The higher costs compared to RTE’s previous Energy Futures 2050 projections are due to the extension of the operating life of all the nuclear power plants in service, the higher rate of deployment of renewable energies than in the previous predictions and, lastly, new flexibility requirements.
- Gas prices – Gas prices continue to rise. The average bill rose by 11.7 percent in July, followed by a 1.8-percent increase at the beginning of August. This increase had been anticipated since last February due to the rise in distribution costs (the cost of transporting gas). Nevertheless, it has been the subject of much debate, as the cost of energy is weighing heavily on many households because of the end of the tariff shields introduced by the government to limit the rise in energy prices during the crisis. Energy prices were a key campaign issue during the parliamentary elections on 30 June and 7 July following the dissolution of the National Assembly after the European elections. For more in depth analysis, the Shift Project think tank examined the place of climate issues and fossil fuel phase-out in the debates.
- Hydrogen – A memorandum of understanding for a major project to produce green hydrogen in Tunisia was signed by HDF Energy (Hydrogène de France) and the Tunisian Ministry of Energy at the end of July. With an initial investment of around €3 billion, it is set to supply both the European market and French needs. TE H2, which is 80% owned by Total Energies alongside the Eren group, had in May announced a partnership with Austrian energy company Verbund to set up a huge Tunisian green hydrogen production project called Notos… Many fear the consequences for local populations of European support for initiatives to develop the use of green hydrogen on the other side of the Mediterranean, mainly in Tunisia and Morocco.
- Solar support down – The level of support on offer for the installation of solar panels has dropped since 1 August The main reason is the decision to stop subsidising Chinese products, which are cheaper and more popular than European counterparts with higher production costs.
- New nuclear – EDF wants to build its new reactors within less than six years, chairman Luc Rémont announced. The French multinational electric utility company, which is owned by the government, wants to invest in its new nuclear programme with six, or even 14, new nuclear reactors in France between now and 2035-2040. The first six will be built at Penly (Seine-Maritime), Gravelines (Nord) and Bugey (Ain). As for the Flamanville reactor in Normandy, it should be up and running before the end of the year, after 17 years of construction and accumulated delays. However, several associations took legal action in July against the Flamanville project after irregularities were reported by the French nuclear safety authority (ANS) in the supply chain for materials destined for the plant. The projected cost of the six future reactors was revised upwards last March to 67.4 billion euros, or 30% more than initially announced for 2021.
- Data sets – Several sets of data were updated in July, ranging from energy prices (lower prices for petroleum products despite persistently high levels, primary energy production rebound by 13 %, 2.6% fall in final energy consumption in 2023) to renewable energies (22.2% of renewable energy in gross final consumption in 2023, an increase of 1.7 percentage points compared with 2022) and household energy consumption.