COUNTRY PRESENTATION:
FRANCE
Cedric Seguin Muñoz
May 22, 2012
Geographical conditions
Source: http://solargis.info/free-solar-maps image
Economical conditions

The government maintains a strong presence in some sectors, particularly
power, public transport, and defense industries.

With at least 75 million foreign tourists per year, France is the most visited
country in the world and maintains the third largest income in the world
from tourism.

Under President SARKOZY, Paris implemented austerity measures that
eliminated tax credits and froze most government spending in an effort to
bring the budget deficit under the 3% euro-zone ceiling by 2013 and to
highlight France's commitment to fiscal discipline at a time of intense
financial market scrutiny of euro-zone debt levels.

Socialist Francois HOLLANDE won the May 2012 presidential election,
after advocating pro-growth economic policies, as well as measures such as
forcing banks to separate their investment and savings businesses,
increasing taxes on bank profits, introducing a new top bracket on income
taxes for people earning over $1.3 million a year, and hiring an additional
60,000 civil servants during his five-year term of office.
Source: https://www.cia.gov/
Economical data
Source:
http://www.epia.org/publications/ep
iapublications.html,
https://www.cia.gov/,
http://www.eulerhermes-aktuell.de/,
http://www.inflation.eu/
Costs of capital
WACC
Inflation Country risk
WACC
Other Debt average 5 rating (Euler
Residential
segments
years
Hermes)
4.60%
8.60%
2.80%
1.6%
Low risk-AA
GDP (purchasing
Public debt
power parity)
Unemployment
rate
$2.214 trillion
(2011 est.)
9.1% (2011 est.)
85.5% of GDP
(2011 est.)
Energy sector policy

France is the main country to use electricity of nuclear origin
as the dominant method of production (78% of French
production in 2007).
In 2010:
Nuclear: 407.9 TWh
Hydraulic: 68 TWh
Fossil-fired: 59.4 TWh
Wind: 9.5 TWh
Other renewables: 5.5 TWh
Total: a production of 550.3 TWh
in 2010 (data: RTE 20101)
Domestic consumption in
2010: 488.1 TWh (source: RTE 2010)
Source:
Wikipedia
Renewable energy policy

Since 2007 and the Grenelle Environment, France sets up an ambitious strategy for
developing renewable energy in its territory.

Baseline in 2020 to reach the target of 23% renewable energy.

This is to produce 20 Mtoe of renewable energy and more than in 2006. For
comparison, in 2006, 275.3 Mtoe was consumed in the territory of which 18.6 Mtoe
from renewable sources.

New measures since 2010 like:
The introduction of a tax credit for production using renewable energy
The purchase obligation for electricity produced with specific tariffs for each sector
(wind, solar, biomass etc.)
The simplification of administrative procedures for domestic projects
The implementation of certification and labels for better identified technologies
The establishment of specific regulations for photovoltaic ground ...

France is the leading European producer of renewable energy ahead of Sweden and
Germany, with over 15% of total European production.
Source: http://www.developpement-durable.gouv.fr/
Solar policy
Objective of 5400 MW installed in 2020.
following assumptions:
It is made the
• The solar thermal in 2020 represent 10% of the total installed
capacity. The annual operating time is 1800h to the peak power
of the installation. The first installations will be commissioned in
2012.
• PV systems with solar tracking represent 1/6 of the total
power
installed
in
2020. The
annual
operating
time is 1800h to the peak power of the installation.
• The rest of the installed capacity of photovoltaic systems is
made without solar tracking. The annual operating
time is 1100h to the peak power of the installation.
Source: http://www.developpement-durable.gouv.fr/
The sales prices of solar energy

The solar energy produced on the roof is measured and EDF is
obliged to pay for it at 37.06 € cts / kWh guaranteed by a 20-year
contract.

Revenues in the solar be exempt from tax for a facility with a capacity
of less than 3kWc. In addition, the income is taxable.

You can receive a tax credit of 11% for the installation of solar
panels.The maximum tax credit is limited to € 3,200 per kWp,
or €16,000 for installation of a 5 kWp.

You can also benefit from a rate of 7% VAT for the supply of materials
and labor required for installation.
To do so requires that the construction of the house is more than 2
years.
Source: http://panneaux-solaires-photovoltaiques.evasol.fr/financementphotovoltaique.html
Size of electricity market

France is the 6th world market, with consumption equal
to 488 TWh in 2010 (primary electricity).

This market, largely dominated by the national
company EDF, is marked
by a steady growth in
consumption and the ongoing process of open
competition required by the European Commission in 2007.
Source:
Wikipedia
Importations and exportations
Exportations to
this country in 2010
(en TWh)
Importations into
this country in 2010
(en TWh)
Exportations to
this country in 2011
(en TWh)
Importations into
this country in 2011
(en TWh)
Germany
9,4
16,1
10,8
8,4
Belgium
3,9
4,8
7,9
2,1
UK
8,5
5,5
7,7
2,9
Spain
1,9
3,5
4,5
3,1
Italy
17,4
1,2
16,9
0,8
Switzerland
25,5
6,0
27,6
2,4
Total France
66,6
37,1
75,4
19,7
Net exportations
29,5
55,7
Source:
Wikipedia
Productors
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Productors in France
EDF (Électricité de France)
CNR (Compagnie nationale du Rhône)
SNET (Société nationale d'électricité et de thermique)
SHEM (Société hydroélectrique du Midi)
UEM (Usine d'électricité de Metz)
Foreign Productors
Electrabel (Belgique)
Endesa (Espagne)
EGL (Suisse)
Enel (Italie)
Iberdrola (Espagne)
E.ON (Allemagne)
Source:
Wikipedia
73 suppliers
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Direct Énergie
Poweo
ÉS Énergies Strasbourg (Électricité de Strasbourg)
Cargill International
Enercoop
Proxelia
GDF Dolce Vita
Alterna
Lampiris
Planète Oui
GEG Grenoble
Rhodia Energy Services (pour les consommateurs
industriels)
Source:
Wikipedia
Forecast of electricity prices
Source: http://www.epia.org/publications/epiapublications.html
Solar market Status and Outlook
Solar installations
France saw 1.5 GW of new systems connected last
year, mainly a result of installations done in 2010.
Only less than 10% of this capacity was installed
during 2011.
The extremely long grid connection process in
France can take up to 18 months. The important
FiT cuts and long grid connection lead times
explain why new installations were at a poor
level during 2011, whilst grid connections reached
a record high of 1.5 GW in 2011.
Source: http://www.epia.org/publications/epiapublications.html
European Market Split 2011
Source: http://www.epia.org/publications/epiapublications.html
Global cumulative installed capacity
Source: http://www.epia.org/publications/epiapublications.html
European PV market segmentation
Source: http://www.epia.org/publications/epiapublications.html
Historical market data and outlook
until 2016
Source: http://www.epia.org/publications/epiapublications.html
Cumulative market data and
outlook until 2016
Source: http://www.epia.org/publications/epiapublications.html
Forecast for 2016 (source:EPIA)
Source: http://www.epia.org/publications/epiapublications.html
Contribution to electricity demand
Source: http://www.epia.org/publications/epiapublications.html
Regional distribution of PV
Source: http://www.epia.org/publications/epiapublications.html
Solar companies
http://www.enf.cn/database/sellers-france.html
161 Sellers
1.2.3. SOLAIRE
20 PV Modules
producers
Alternasol
Auversun
3i PLUS
BatiSolar
A2Energie
E.F.E. 66
ACTELIOS
Eurolight
FONROCHE
ACTIVASUN
AE3000
AER
France watts
ILIO
IMEX CGI
Photowatt
AGIRENERGY
S'Tile
Agrimeer
Senersun
AED
Alternasol
Altus Energy
Serrano
Environnement
Amicus Salus
SILLIA énergie
679 Installers
1001 Soleils
2APC
2ER
2ES
3A Energies
3jSystem
3S Sud System Solaire
3synergies
46 Idée Plus
A E G Aquitaine
A l'Nrj Sol'Air
A-E-N
A.E.R Sud
A.T.D.
A2CS
A2Energie
AB2C
SNAsolar
Apex BP Solar
Solarezo
ABC Energie Solaire
http://www.enf.cn/database/installers-france.html
Caps of policy schemes
The new support framework in place since March 2011 aims to limit the
annual market size to 500 MW: It allows systems of up to 100 kW
to benefit from a remunerative FiTlevel.
For systems larger than that the FiT is extremely low (slightly above
0.10 €/kWh).
Alternatively larger projects can apply to calls for tenders: The results
will not be known until 2012, shifting the market development by 6
months to more than 1 year and the connection of systems even
later.
Source: http://www.epia.org/publications/epiapublications.html
Solar Grid Parity Mapping Project Data Collection Template
Energy production
data
Geographical Position
Latittude
48.85
43.29
45.75
44.83
45.69
50.63
48.39
41.92
Longitude
2.35
5.36
4.84
-0.57
-0.32
3.06
-4.48
8.73
Country
City
FRANCE
FRANCE
FRANCE
FRANCE
FRANCE
FRANCE
FRANCE
FRANCE
Paris
Marseille
Lyon
Bordeaux
Cognac
Lille
Brest
Ajaccio
Annual Average
Radiation
(kWh/m2/d)
3.13
4.34
3.53
3.65
3.67
2.91
3.10
4.75
http://eosweb.larc.nasa.gov/
4 principal different irradiation zones
http://sycomoreen.free.fr/docs_multimedia/Resume_PV_eng.pdf
Residential
4 €/Wp
Energy cost:
12.11 cts/kWh
http://fr.edf.com/
http://www.photovoltaique.info/+Les-Etats-Generaux-du-Solaire+.html
Industrial
2.5 €/Wp
Energy cost:
8.29 cts/kWh
http://fr.edf.com/
http://www.photovoltaique.info/+Les-Etats-Generaux-du-Solaire+.html
Utilities
2 €/Wp
Energy cost:
6.39 cts/kWh
http://fr.edf.com/
http://www.photovoltaique.info/+Les-Etats-Generaux-du-Solaire+.html
Conclusion

Clear FiT evolution in 2012 for systems up to 100 kW,
however non-transparent and complex tendering scheme
for larger systems.

Strong adverse lobbying from conventional stakeholders.

Heavy and slow administrative processes still in place.

Another obligation that new buildings be self-sufficient in
terms of energy consumption by 2020 also adds some hope
for a future re-development of PV in France.

Grid parity should be aimed in 2016 for the south of the
country and 2020 for the north.
Hope for the french solar industry? The new president
Francois Hollande has the last word…

Francois Hollande, president, supports solar energy
and promises a rebound for this renewable energy:
"I, President of the Republic, I will not vilify solar
energy as my predecessor was able to do
throughout the past months, by refraining himself to
speak well of it under the influence of some lobbies.
I President, I pledge to reduce the nuclear share of
75 to 50% in 2025 and to make the effort to make
renewable energy and solar energy considerably
developed.
Today, the anaphora is not anymore conceptual, it
has become a reality. French solar industry will
recover hope ... "