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R 081731Z DEC 08
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 5004
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUCNMUC/EU CANDIDATE STATES COLLECTIVE

UNCLAS SECTION 01 OF 02 PARIS 002222 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KGHG SENV ENRG TRGY EU FR
SUBJECT: FRANCE PUSHES RENEWABLE ENERGIES DESPITE COUNTERCURRENTS 
 
¶1. Summary.  France has unveiled an ambitious national plan to 
double the share of renewables in total energy consumption to 23 
percent by 2020.  At present, hydropower accounts for 12 percent. 
Apart from biofuels for transportation, the new renewable 
electricity plan will target photovoltaic (PV) installations and 
wind farms. However, industry fears the GOF may retreat on wind 
power in the face of local and national opposition, a potential 
problem for solar energy as well.  France already has a low carbon 
footprint for electricity generation, a result of its reliance on 
nuclear power.  End summary. 
 
On the Renewable Cusp for 2020 
------------------------------ 
¶2.  Minister of Ecology, Environment, Sustainable Development and 
Regional Planning (MEEDDAT) Jean-Louis Borloo recently announced a 
package of 50 measures to boost renewables in France's general 
energy consumption mix to 23 percent. The initiative will accelerate 
research and promote projects in bioenergy, hydraulic, wind, 
geothermal, solar, and marine energies and develop industrial 
capacity, especially for solar power.  According to ADEME (the 
French Agency for Environment and Energy Management) the renewables 
and energy efficiency market in France should rise from 33 billion 
Euros in 2008 to approximately 70 billion Euros in 2012.  By 2012, 
renewable energy-related job creation is expected to rise from 
54,000 jobs in 2007 to 120,000, and energy efficiency-related jobs 
from 168,000 to 320,000. 
 
Solar to Spearhead Renewables Initiative 
---------------------------------------- 
¶3. "Solar is the big one," stated Borloo.  Though it has 18 
megawatts (MW) of PV in 2008, France plans to reach 5,400 MW by 
¶2020.  (In the EU EU France ranks fourth for installed solar 
capacity after Germany, Spain and Italy.) As a start, by 2011 the 
GOF intends to build at least one solar farm in each region for a 
combined total capacity of 300 MW.   Besides existing residential 
rooftop PV incentive programs, France will create a new 
feed-in-tariff electricity production incentive (Euro 0.46/kWh) for 
buildings with large roofs such as factories, supermarkets, schools, 
or barns. 
 
Avoiding "Sterile Debate" on Wind Energy 
---------------------------------------- 
¶4.  The French plan to increase installed wind capacity from 2,500 
MW in 2007 to 25,000 MW in 2020, of which 6000 MW will be from 
offshore wind farms. Preferential feed-in tariffs will be maintained 
until 2012. MEEDDAT also announced its intention to draft laws "to 
improve the regulatory framework" of siting land and offshore 
facilities.   However, the law's contents remains to be defined. 
This ambiguity is worrying to the French turbine industry in the 
face of NGO opposition to installation of wind farms.  Beyond 
concern for animal welfare, noise and "visual pollution," wind 
energy opponents denounce inflated electricity bills resulting from 
the feed-in tariffs and misuse of subsidies.  Former President 
Valery Giscard d'Estaing described the sector as a "questionable 
business and a silent fraud."  A recent study by the Institute 
Montaigne, a conservative think tank, concluded that additional 
costs for wind turbine power over lower cost alternatives "will be 
around 1 billion Euros a year up to 2020, rising to 2.5 billion 
Euros per year if the program proposed by the GOF is realized." 
ADEME rejects these estimates. 
 
Bio, Geo and Hydro Energy - a Supporting Role 
--------------------------------------------- 
¶5. Though less ambitious than solar and wind power, the plan will 
install heat pumps in two million households and increase biomass 
production significantly by 2020.  To fund biogas, thermal and 
geothermal collectors a "Renewable Heat Fund" will be launched next 
year providing approximately 1 billion Euros over three years. 
According to the media, in December the GOF plans to tender for 
several biomass-fueled power plants generating a total of 250 MW. 
Currently hydro electricity is the main source of renewable 
electricity in France with an annual production of 70 Terawatts 
(TW)/hr/yr and installed capacity of 25,000 MW. 
 
Biofuels Postponed 
------------------ 
 
¶6. Biofuels are expected to represent 15 percent of the renewable 
energy objective for 2020.  However, the MEEDDAT document issued on 
November 17 merely states that a program for biofuels, especially 
second generation biofuels, will be presented later.  (In mid-2009 
ADEME's biofuels study is scheduled for release.) 
 
Energy Efficiency Remains Key 
----------------------------- 
¶7.  In addition to increasing the numerator of renewable energy 
output, our ADEME and MEEDAT contacts stress the need to reduce the 
denominator of total energy consumption through energy conservation 
and efficiency if France is to reach its target of 23 percent 
renewable energy by 2020.  Recently, the ADEME President lamented 
 
PARIS 00002222  002 OF 002 
 
 
that the 20 percent target on increased energy efficiency in the EU 
Climate/Energy Package is not legally binding. 
Comment - NIMBY is Alive in France 
---------------------------------- 
¶8.  While the French broadly support an increase in renewables, 
where to site the facilities is a problem.  Rapidly increasing wind 
power is an important key to reaching the government's renewable 
energy target.  As noted above, with unease growing among 
politicians and local communities, the GOF is proposing planning 
controls and local community consultation procedures as a means to 
improve acceptability.  However, the French Renewable Energies Union 
representing industry has warned the GOF against discouraging 
potential wind energy investors.  Similarly, apart from roof-top 
facilities, solar farms' use of open land may also arouse local 
opposition.  Finally, the well-established nuclear industry, which 
no longer faces these problems, advocates its "low carbon footprint" 
solution to reducing greenhouse gas emissions.  The GOF will need to 
demonstrate strong political will to move forward with broad-scale 
wind and solar power projects. 
 
STAPLETON