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DE RUEHFR #0520/01 1001550
ZNR UUUUU ZZH
R 101550Z APR 09
FM AMEMBASSY PARIS
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INFO RHEBAAA/USDOE WASHDC
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RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE

UNCLAS SECTION 01 OF 02 PARIS 000520 
 
SIPDIS 
NOT FOR INTERNET DISTRIBUTION 
 
E.O. 12958: N/A 
TAGS: ENRG SENV EFIN KGHG FR
 
SUBJECT: GREEN INVESTMENTS IN FRENCH STIMULUS 
PACKAGE 
 
REF: STATE 26022 
 
¶1.  Summary:  "Green" investments, as defined 
reftel, account for roughly 3.5 Q 4.0 billion euros 
of the 26 billion euro French economic stimulus 
package passed in February 2009.  Funds for public 
rail, energy generation, alternative energy 
investments, nuclear power, energy distribution and 
transport figure among allocations.  In addition, a 
portion of the GOF's three billion euro loans to 
automakers Renault and PSA-Peugeot-Citroen France's 
will go towards investments in low-emission 
vehicles.  The bulk of the new investment spending 
had been planned for 2010 or 2011, and was 
accelerated under the stimulus package.  End 
summary. 
 
RENEWABLE ENERGY 
---------------- 
¶2. The French stimulus package allocates nearly 333 
million euros for renewable energy efforts.  Of a 
total 2.5 billion euros to be allocated to 
Electricite de France (EDF), 300 million will be 
directed toward renewable energy, including the 
construction of three solar power plants.  Thirty 
million euros will be used for energy efficiency 
modernizations in agricultural equipment.  This 
includes biomass wood energy, solar-fired heaters, 
solar drying of fodder and construction of 30 units 
for methanization processes.  The French Postal 
Service will spend 2.3 million euros of its total 
600 million euro stimulus package allocation on a 
solar power station. 
 
ENERGY EFFICIENCY 
----------------- 
¶3.  The stimulus package overall allocates 
approximately 550 million euros toward energy 
efficiency improvements.  Fifty million euros will 
be spent on energy audits for French Government 
buildings before 2010.  An additional 150 million 
will go towards improvements in government facility 
heating, accessibility, functionality and 
architectural quality, with the aim of reducing 
energy consumption at these locations by 40%.  Ten 
million euros will be allocated to the installation 
of energy meters in government buildings, and 200 
million euros will be spent on renovations and 
energy efficiency improvements for residential 
housing. 
 
¶4.  Of the total 600 million euros going to the 
French Postal Service, 120 million will be used for 
sustainable development in postal service buildings 
(including improvements in energy efficiency).  An 
estimated 20 million euros will be invested in new 
energies and sustainable development at French 
National Railway (SNCF) stations. 
 
IMPROVEMENTS TO THE POWER GRID 
------------------------------ 
¶5.  The stimulus package allocates 600 million to 
EDF for improvements to electricity distribution 
networks.  Of this, 300 million will go to improving 
the safety and quality of power grids.  And 800 
million will be divided between improvements to 
electricity and natural gas distribution network. 
 
MASS TRANSPORTATION INVESTMENTS 
------------------------------- 
¶6.  Mass transportation is to receive 950 million 
euros in stimulus allocations.  French National 
Railway (SNCF) will receive 400 million euros for 
modernization of rolling stock and station 
renovations (including energy efficiency and 
information systems improvements).  The Paris Metro 
Authority (RATP) is to receive 450 million euros to 
renew rolling stock and improve mass transit 
stations, including accessibility. 
 
GREEN INVESTMENTS IN THE AUTO SECTOR 
------------------------------------ 
¶7.  As part of the GOF auto sector aid package, 
French car makers Renault SA and PSA Peugeot-Citroen 
are each receiving government-backed loans totaling 
three billion euros over a period of five years at 
an interest rate of six percent.  The companies have 
 
PARIS 00000520  002 OF 002 
 
 
pledged to use the loans to develop more fuel- 
efficient, low-emission vehicles.  PSA will continue 
its research on a range of cleaner technologies, 
such as stop-start systems, hybrid powertrains, 
plug-in hybrids and electric cars.  Renault says it 
will use its allocation in part to finance the 
development of vehicles with zero or low CO2 
emissions. 
 
¶8.  New consumer incentives are planned to boost the 
GOF's existing "bonus-malus" system of tax 
incentives that favor the purchase of low-emission 
vehicles.  President Sarkozy announced in February 
that the GOF will provide rebates of up to one 
thousand euros for car buyers who scrap older, 
higher-(CO2)emission vehicles. 
 
OIL, GAS OR COAL 
---------------- 
¶9.  Fossil fuel-related initiatives account for 
approximately 1.1 billion euros of the French 
stimulus.  200 million euros will be allocated to 
GDF-Suez for upgrading natural gas distribution 
networks, and 15 million euros for an underground 
gas connection in Toulon.  (This is part of the 
total 800 million euro investment in gas and 
electricity energy distribution networks.) 
 
¶10.   Of EDF's 2.5 billion euro allocation, 300 
million will support development of new means of 
production, including the construction of combined- 
cycle gas turbine power plants (CCGT).  The first 
plant of this kind opened in France in 2005. In 
addition the funds will be used for maintenance and 
improvements at existing fossil plants. 
 
NUCLEAR ENERGY 
-------------- 
¶11.  Approximately 990 million euros will be spent, 
via EDF, on nuclear power-related projects.  Funds 
will be used for maintenance and improvements to 
existing plants, construction of new storage sites, 
a laboratory for irradiated material and an EPR 
reactor simulator.  It will also be used to renew 
generator stator coils at several existing plants. 
 
 
EXPENDITURE TIMELINE 
-------------------- 
¶12.  While a large portion of the French economic 
stimulus is scheduled to be dispersed in the next 
two years, several of the energy efficiency projects 
extend into 2012 or 2013.  The auto sector loans 
have a five-year term. 
 
PEKALA