After the Fukushima accident, a national debate regarding French energy transition was launched. A policy goal of reducing nuclear electricity generation from 75% to 50% share of total generation was established. Since the year 2013, electricity consumption has stabilized in France, the share of renewable sources continues to grow and there is a high level of hydropower production. Thus, means of conventional thermal generation are rarely used. In addition, electricity generation and capacity continue to increase as the country remains a net energy exporter. This webinar analyses past, present and future of the country from an energetic point of view.

1. France, moving away from nuclear technology?
José Daniel Fasolino, Hans De Keulenaer and Fernando Nuño
November 23rd, 2015

2. About this series
High-level overviews of country energy statistics & policies:
1. Germany November 12
2. Spain today Nov 16
3. France November 23
4. Italy December 10
5. UK to be announced
6. Belgium “
7. Poland “
8. Mexico “
9. Indonesia “
10. Denmark “
11. Other countries TBD
| Country Profile France2

3. Process per country
| Country Profile France3
Data tables
Literature review
Summarize
conclusions
Expert
interviews
Webinar
Based on detailed energy balance & published indicators
National energy plans & subsidiary plans for renewables,
energy efficiency, infrastructure expansion
Key features that make the country unique
Verify & refine findings
Public interactive webinar for wider input & review

4. Content
Introduction
Energy Policy
Governance
Supply
Demand
Prices
Summary: energy balance & indicators, specifics & issues
| Country Profile France4

5. Introduction
Country snapshot in numbers
Indicator Unit Year of Estimate Value
Land area Thousand sq.km 2014 547.6
Forest area % of land area 2012 29.3
Population Millions 2013 66.0
Population density People per sq.km 2013 120.6
GDP per capita PPP 2011 $ 2014 44,747
Industry value-added % of GDP 2013 19.8
Inflation CPI % 2013 0.9
Rents (mineral, oil, coal, gas) % of GDP 2012 0.0
| Country Profile France5
Source: World Bank – World Development Indicators

6. Introduction
Wind and Solar resources
| Country Profile France6

7. Introduction
Topography
Average altitude 375 meters
Abundant hills convenient
for wind energy
Pyrenees and high Alps
above 3000 m high
Many mountain chains with
heights around 1000 m
| Country Profile France7

8. Introduction
International waters
| Country Profile France8

9. Introduction
Resources
| Country Profile France9
The French power mix is dominated by nuclear
energy, which in 2014 accounted for 49% of total
installed capacity (129 GW) and 77% of electricity
production
It also has a significant amount of hydropower,
20% of installed capacity and 13% of production
in 2014
The share of renewables’ has been continuously
rising over the past years and in 2014 they
represented 11.3% of installed capacity and 5.3%
of electricity production
Coal, natural gas and oil are generally used as
backup
GW
Source: World Energy Resources – 2013 Survey
0 5 10 15 20 25 30
Wind
PV
Hydro
Available Renewable Capacity

10. Energy Policy
National energy plan - Targets
According to the president Hollande the two main work sites ahead are the
energetic renovation of buildings and cleaner transport
The Energy Transition Bill for Green Growth adopted on August, 2015
(Transition énergétique pour la croissance verte) foresees the following:
• 40% reduction of GHG by 2030
• Reduction of final energy consumption of 50% in 2050
• 32% renewables’ in final energy consumption by 2030
• Reduction of fossil energy sources of 30% by 2030 (in comparison to 2012)
• Reduction of nuclear electricity share to 50% by 2025 (77% in 2014)
- Cap nuclear capacity at its current level (63.2 GW)
• Increase on carbon tax from 14.5€/ton to 56€/ton in 2020 and 100€/ton in 2030
• Supporting actions totalling 10Bn€
- Interest-free credits for private buildings renovation
- Subsidies for switching from diesel to electric cars
| Country Profile France10

11. Energy Policy
Renewable Energy
The NREAP is based on Grenelle de l’Environnement 1 and 2
• 23% RE share by 2020 confirmed by National Assembly with targets, incl. 10% in
biofuels, according to EU target
- 27% RE in electricity (12,729 ktoe)
- 33% RE share in heating & cooling (19,732 ktoe)
- 10.5% share in the transportation sector (4,062 ktoe)
• Financial measures, e.g.
- Heat fund (“fond chaleur”) for heat facilities
- Feed-in tariffs guarantee, incl. purchase obligation best technology promotion,
especially for biomass, wind and PV
• Regulatory measures, e.g. call for tender to control sector growth and prevent
potential conflicts between users of the same resources
• Regional/ local plans & planning law, e.g. SRCAE (Schéma Régional du Climat, de
l’Air et de L’Energie)
| Country Profile France11

12. Energy Policy
Renewable Energy
Expected electricity production and capacity by 2020
| Country Profile France12
Capacity 2014
(MW)
Capacity 2020
(MW)
Production 2014
(GWh)
Production 2020
(GWh)
Biomass 1,478 3,007 8,001 17,171
Geotermal 0 80 0 475
Hydro 25,644 28,300 69,069 71,703
Solar 4,700 5,400 4,663 6,885
Wave / tidal 0 380 0 1,150
Wind 9,285 25,000 16,888 57,900

13. Energy Policy
Energy Efficiency
The 2014 NEEAP targets annual energy savings of 1.5% compared to 2010-
2012 average:
• Lowered energy savings target (<20%) based on Senate vote on May 3rd, 2015
• NEEAP foresees reduction of final energy consumption (to 131.4 Mtep by 2020)
and primary energy consumption (236.3 Mtep by 2020)
• Main mechanisms include financial incentives and auditing procedures
The housing energy efficiency improvement plan (PREH) reflects the willing
of renovating 500.000 dwellings per year by 2017
Both the State and territorial authorities play a crucial role in the
management of GHG emissions and EE. This approach should help achieve
the fixed objective of 40% reduction on energy consumption
France implemented the Energy efficiency obligation scheme (or ‘white
certificates’)
| Country Profile France13

14. Energy Policy
Electricity
French wholesale electricity market adheres to the West European design,
with producers, suppliers and traders able to buy and sell energy bilaterally
via brokered contracts or on the EPEX and EEX
• Trading takes place in the forward, day-ahead spot and intra-day timeframes
With the Nome law, a capacity market has to be introduced with supply
bidding beginning in 2015 in preparation for the first delivery period
• The Nome law eliminates regulated tariff for industrial customers (‘yellow and
green tariffs)
- Only 21% of the sector do not operate with the regulated market
Regulated tariffs are maintained for household customers (‘blue tariff’)
• Most customers remain in the regulated sector (alternative suppliers represent 7%)
• Three choices of rate structure (flat, peak and variable)
Transmission, distribution and generation is generally controlled by EDF
under different subsidiaries that work independently
| Country Profile France14
Source: ENTSO-E – SO&AF 2014-2030

15. Energy Policy
Gas
Operators, energy traders or financial players active across the gas chain
must secure their supply and control costs in order to guarantee the
continuity of the gas supply under proper conditions for end customers
Gas is generally purchased:
• By mutual agreement, via traditional long-term contracts used to import the
majority of gas from Russia, Algeria and Norway
• Via brokerage, which includes the organised market (Powernext) and
traders/brokers
Gas is not a commodity subject to captive use in the same way as
electricity or oil. Gas is rated according to price developments by its
substitutes (oil products) via indexing mechanisms
• Since 2008 wholesale market prices are lower than the long-term contract prices
indexed to oil products
| Country Profile France15
Source: Commission – Single market progress report

16. Energy Policy
Nuclear
On June 13th 2006 Act the various categories of regulatory or individual
resolutions are listed:
• Regulatory resolution of a technical nature for implementation of decrees or orders
issued concerning nuclear safety and radiation protection
• Basic nuclear installation commissioning authorisation
• Authorisations or approvals concerning the carriage of radioactive substances or
medical facilities and equipment using ionising radiation
The National Plan on management of radioactive materials and waste
(PNGMDR) applies to the Government to draw up every three years (last one
published for 2013-2015 period) a national plan with the purpose of :
• Drawing up a balance on existing management of radioactive materials
• Making an inventory of foreseeable needs for storage and waste disposal
• Indicating necessary capacities for such installations and the duration of storage
| Country Profile France16

17. Energy Policy
Climate
Long-term French energy and climate policies are framed through a set of
successive laws:
• The 2005 POPE law establishes a 3% GHG emission reduction annually, with the
long-term objective of reaching 75% by 2030. It also introduces:
- 2.5% of final energy intensity reduction from 2016 to 2030
- National climate plan, updated every two years
• Grenelle laws set the additional goal of reducing energy consumption in buildings
by 38% before 2020
• The energy transition bill also aims to reducing CO2 emissions by 40% by 2030
(when compared to 1990 levels) among other objectives that would indirectly
provoke a positive climate effect and GHG reduction.
| Country Profile France17

18. Supply
Simplified Energy Balance
| Country Profile France18
ktoe 1960 1970 1980 1990 2000 2010 2011 2012 2013
Primary Production 45,297 50,092 52,600 111,869 130,726 135,340 135,869 134,467 135,956
Imports 45,142 124,563 164,709 139,392 162,843 161,389 158,142 155,084 152,974
Exports -6,643 -12,661 -15,708 -20,015 -30,204 -30,360 -32,778 -30,957 -29,229
Bunkers -327 -1,530 -1,895 -3,146 -5,086 -5,508 -5,801 -5,639 -5,962
Stock changes -2,108 -3,337 -3,982 -1,655 -3,513 2,591 -1,385 1,700 665
Gross inland consumption 79,222 153,352 191,770 224,006 251,974 261,158 251,589 252,330 252,287
Available for final
consumption 58,354 121,693 141,285 143,154 163,213 162,714 151,600 154,947..
Industry 24,940 46,835 41,211 32,964 34,743 29,108 29,067 27,890..
Transport 11,647 19,216 30,310 38,607 45,038 43,800 43,623 44,274..
Residential 14,644 21,595 22,598 35,742 40,742 43,730 38,213 42,035..
Services 4,188 19,691 30,208 18,072 18,135 23,280 21,621 22,524..
Agriculture 794 2,471 3,239 3,471 3,833 4,058 4,053 4,131..
Non-energy uses 2,138 11,581 13,411 13,361 16,166 12,143 12,323 11,953..
Efficiency of transformation 73.7% 79.4% 73.7% 63.9% 64.8% 62.3% 60.3% 61.4%
Energy independence 57.2% 32.7% 27.4% 49.9% 51.9% 51.8% 54.0% 53.3% 53.9%
Source: IEA Energy Balances of OECD Countries

19. Supply
Overview
| Country Profile France19
Source: IEA Energy Balances of OECD Countries
0%
10%
20%
30%
40%
50%
60%
70%
0
50
100
150
200
250
300
1960 1970 1980 1990 2000 2010 2011 2012 2013
Mtoe
Production TPES Energy independence
Historical primary energy supply and energy independence

20. Supply
Total Primary Energy Supply
| Country Profile France20
Source: IEA Energy Balances of OECD Countries
Electricity represents close to 50% of total primary energy supply
5%
28%
15%
45%
7%
Total Primary Energy Supply
Solids
Oil
Gas
Electricity
Biofuels & Waste

21. Supply
Electricity
| Country Profile France21
Source: ENERDATA – Global Energy & CO2 Data
1% 3% 4%
1%
13%
74%
4%
Electricity production by source
Oil
Gas
Coal
Biomass
Hydro
Nuclear
Wind, solar,
geothermal
10%
8%
5%
1%
19%47%
10%
Power capacity by source
Oil
Gas
Coal
Biomass
Hydro
Nuclear
Wind, solar,
geothermal
Nuclear energy is the main electricity generation source in France

22. Supply
Interconnectors
France is interconnected with Belgium, UK, Germany, Spain, Italy and
Switzerland
• France takes part in four of the seven Electricity Regional Initiatives defined by the
European Commission: Central-West, Central-South, South-West and France-UK-
Ireland
The market is integrated with neighbouring markets to varying degrees
• Coupled with Belgian, German and UK power markets
• Intra-day interconnection allocation mechanism with Italy, Switzerland and Spain
France is a significant exporter of electricity, with a net balance of 47 TWh
in 2013
• The greatest volume of contractual exports flow to Switzerland and Italy
• France is a net electricity importer from Germany.
After being reluctant for several years, France has accepted to develop
more interconnections with Spain
| Country Profile France22

23. Supply
Gas
France is the fourth-largest gas market in Europe, with consumption of
around 10% of EU demand
Gas production is negligible
98% of France’s gas supply is imported
• Approximately 70% through gas pipelines and 30% by LNG
• Gas supply is very diversified but Norway and Russia are its main sources
France has the third largest LNG storage capacity of Europe
Longest gas transmission network in Europe, as a result of its borders with
5 EU countries
| Country Profile France23

24. Demand
Overview
| Country Profile France24
Source: IEA Energy Balances of OECD Countries
20%
31%
16%
30%
3%
Energy consumption by sector
Industry
Transport
Services
Residential
Agriculture
0
20
40
60
80
100
120
140
160
180
1970 1990 2010 2012
Energy consumption, Mtoe

25. Demand
Industry
| Country Profile France25
Source: IEA Energy Balances of OECD Countries
11%
19%
30%
35%
4% 1%
Industry energy consumption by source
Coal
Oil
Gas
Electricity
Biofuels & waste
Heat
Electricity and natural gas are the main consumption sources

26. Oil is the most important source of consumption in the transport
sector
Demand
Transport
| Country Profile France26
Source: IEA Energy Balances of OECD Countries
91%
0%
3%
6%
Transport energy consumption by source
Oil
Gas
Electricity
Biofuels & waste

27. Demand
Services
| Country Profile France27
Source: IEA Energy Balances of OECD Countries
0% 12%
30%
53%
2% 3%
Service sector energy consumption
Coal
Oil
Gas
Electricity
Biofuels & waste
Heat
Electricity is the most relevant consumption in the service sector

28. Demand
Residential
| Country Profile France28
Source: IEA Energy Balances of OECD Countries
0%
16%
30%
33%
18%
3%
Energy consumption in Residential sector
Coal
Oil
Gas
Electricity
Biofuels & waste
Heat
Electricity and gas are the most relevant consumption sources for
residential consumers

29. Prices
National Energy Bill (B€)
29
Fuel Industry Transport Households &
Services
Total
Coal 1 - 0 1
Oil 1 60 11 72
Gas 3 - 15 19
Electricity 9 - 42 51
Heat 0 - 2 2
Total 15 60 70 145
| Country Profile France

30. Prices
Electricity prices w.r.t. neighbours
| Country Profile France30
Constant price in US$cents05 of electricity in industry (taxes incl.)
Unit 1980 2013 2014 Unit 1980 2013 2014
Belgium USc05/kWh 11.1 10.1 9.9 Z-score 0.1 0.3 0.1
France USc05/kWh 11.5 10.0 9.9 Z-score 0.2 0.3 0.1
Germany USc05/kWh 11.5 13.9 14.8 Z-score 0.2 1.2 1.2
Italy USc05/kWh 14.6 25.6 25.9 Z-score 0.8 4.0 3.8
Spain USc05/kWh 9.9 13.1 14.3 Z-score -0.12 1.0 1.1
Switzerland USc05/kWh 13.4 9.5 9.5 Z-score 0.6 0.2 0.0
Source: ENERDATA – Global Energy & CO2 Data

31. Prices
Gas prices w.r.t. neighbours
| Country Profile France31
Source: ENERDATA – Global Energy & CO2 Data
Constant price in US$05 of natural gas in industry (taxes incl.) GCV
Unit 1980 2013 2014 Unit 1980 2013 2014
Belgium USc05/kWh 2.5 3.9 3.3 Z-score -0.4 0.1 -0.2
France USc05/kWh 2.9 4.3 4.1 Z-score -0.3 0.4 0.3
Germany USc05/kWh 2.7 4.1 3.8 Z-score -0.3 0.2 0.2
Italy USc05/kWh 3.3 4.2 4.0 Z-score -0.1 0.3 0.3
Spain USc05/kWh 4.3 3.6 3,6 Z-score 0.15 -0.03 -0.01
Switzerland USc05/kWh 5.0 5.2 5.2 Z-score 0.4 0.8 1.0

32. Summary
A few specifics
Top 5 in overall energy efficiency according to ACEEE scorecard
• Energy efficiency in buildings as main focus of EED adoption in France
- Renovation of all public and tertiary sector buildings to improve energy
performance
- Mandatory energy performance certificates for buildings
- Building permits require energy report
Strong technology position in nuclear power (4th generation) and waste
management
• Fast neutrons and a closed fuel cycle (with sodium or gas coolant)
• Very high temperature 600 MWth reactor
Not a technology leader in renewable energies – moderate PV/ solar and
wind power growth and installed capacity, e.g. compared to Germany
Major player in biofuels within the EU
| Country Profile France32

33. Summary
Technology
General research focus based on Article 19 Grenelle 1 and “Future
Investments” plan (PIA) on low carbon technologies and energies
France has a mandated generation adequacy standard of 3 hours for the
loss of load expectation a year
3 million smart meters by 2016 and 35 million by 2020 (5€Bn investment)
Nuclear energy share must be reduced to 50% before 2025 and the capacity
must be capped at current levels, 63GW.
A number of grid reinforcements are planned or are under research phase
to address internal security issues, connect new generation capacity and
accommodate demand growth
• Increased interconnection capacity with Spain to reach 4000 MW
• Additional HVDC 1000 MW interconnector with the UK before 2020
• New interconnector with Belgium
• Increase interconnection with Italy by 1200 MW, before 2017
| Country Profile France33

34. Summary
Issues
Uncertainty around energy transition law based on political controversy
• Revised/ lowered targets compared to originally defined
Nuclear power as key element in France’s energy independence and energy
price competitiveness
• Limited incentives for needed development and growth of renewable to meet 2020
and 2050 targets
Gas-fired cycle power plants need to back up fluctuating renewable energy
Inconsistent incentives for renewable energies
Fracking for shale gas has been banned since 2011
Sustained high investment in (smart) grid development to meet to achieve
EU interconnectivity goal
RTE forecasts difficulties meeting the generation adequacy standard in
2015 and 2016 winters due to planned decommisioning of fuel and coal-
fired facilities
| Country Profile France34

35. Conclusions
Nuclear investment has delayed RE development and has led to a very
centralized system in the country
Nuclear installations are now limited but this could vary if there’s a political
change
Improvements in EE are more constant and less affected by any political
change
Renewables participation on electricity generation is increasing gradually
and some new technologies have being recently developed, such as off-
shore wind
French energy prices are still regulated but this could change in the short-
term
Buildings efficiency should increase to 38% by 2020
| Country Profile France35

36. Hans.dekeulenaer@copperalliance.eu
Thank you
| Country Profile France36
For more Information please contact