ADEME French Environment and Energy Management Agency

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IEA DSM Task XX Madrid, 7 8 December 2009 ADEME French Environment and Energy Management Agency Contribution of ADEME (France) to the IEA Demand Side Management Program, task XX Bernard GINDROZ, PhD Head of Sophia Antipolis Center Director Direction for Energy, Air and Noise Chairman of the C&S European Forum for Energy Efficiency and Energy Management (SFEM) ADEME Sophia Antipolis (France) Phone 00.33.(0)4.93.95.79.40 - email : Bernard.gindroz@ademe.fr IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 1

Plan ADEME Presentation French Renewable Energies Policy: situation and prospects Overlook Energy Efficiency Legal framework & examples Overlook The French heat fund. an innovative support scheme The new French Demonstration Research fund From global to local or how to reinforce territories strategies and actions - ADEME s contribution examples IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 2

Industrial and commercial public body Placed under the joint supervision of the Ministries in charge of Ecology, Energy, Sustainable Development and Sea (MEEDDM) Ministry of Higher Education and Research (MESR) Mission ADEME an independent public expert Encourage, supervise, stimulate, animate, coordinate, facilitate and perform operations aiming at the protection of environment and energy management more than 900 employees (360 engineers) 3 central offices (Angers, Paris and Valbonne) Budget 26 regional branches 3 representations in the French overseas territories 1 office in Brussels 2009 budget 638 M (including 81 M as operating) IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 3

ADEME areas of intervention Energy Energy Efficiency Renewable energies Noise Air Polluted sites and soils Transports Waste Environmental management Covering most of the economic sectors: building, energy, industry, transport and agriculture IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 4

ADEME s 2009 Budget for actions* Total : 557 M in 2009 versus 249 M in 2008 Including : - Grenelle measures (319 million ) - Research (43 million ) - «Heat fund» (154 million ) - «Waste fund» (50 million ) - 96 million are combined with 115 million from regional co-funding - Demonstration fund on energy (150 million euros) 63 77 145 Waste & soil 272 Energy Air quality and noise * Operating budget not included (87,7M en 2009 ) Cross-sectoral actions IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 5

A new charter agreement on objectives structuring relations between ADEME and the State ADEME's expertise constitutes the Agency's prime resource Acquire Knowledge By expanding the whole knowledge in terms of technology and innovation, and also covering industry branches and costs (studies, statistics, etc.) Convince and mobilise Through communication, information, education and training Advise By developing advisory services (for the French Government, local authorities, companies, households, etc.) disseminated directly or via relay structures Help in decision-making and to achieve execution Through accompanying action and funding of exemplary projects (replicable) IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 6

For what concerns Energy Mobilise about action for energy savings at all levels Energy efficiency Make existing buildings and new construction energy-efficient, and promote efficient energy use Reduce energy consumption, greenhouse gases emission and vulnerability in relation to petroleum products in the transport sector Improve energy efficiency in industrial and agricultural processes Renewable energy and raw materials Increase the rate of development for renewable heat (thermal renewable energy) and electricity (wind power, hydro power, geothermal energy and biomass) Stimulate the use and development of bio resources IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 7

And cross-sectorial action Environmental design, consumption and management Improve the green qualities of products through greater focus on environmental impacts since the design stage (eco-design) Take steps to get even more businesses to adopt eco-design approaches Initiate and support the development of more environmentally friendly purchasing policies, targeting consumers and local authorities Generalise environmental management approaches Achieve more widespread use of environmental management practices in companies, particularly SMEs Develop environmentally friendly practices and environmental management in government administration and local authorities, by acting as a resource centre Place environmental concerns at the core of urban planning, territorial development and infrastructure projects Act to achieve higher priority for environmental and energy issues in urban planning IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 8

ADEME intervention principles Encourage research and technological innovation Decision-making support to help decision Support investment Dissemination of best practices Information and awareness Favour a territorial approach IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 9

ADEME s role in the «Grenelle de l Environnement» Involvement in 2 of the 6 initial working groups and especially the one dedicated to climate change fight and energy management Participation to 21 of the 34 Operational Committees (COMOP - Comité Opérationnels) and especially the ones dedicated to renewable energies and refurbishment of existing buildings ADEME is contributing to 100 actions out of the 268 commitments Signature of a new strategic objective contract in January 2009 between the French Government and ADEME for the 2009-2012 period IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 10

Main ADEME s «new» actions in the energy part of the Grenelle of Environment implementation Demonstration Research Fund on New Energy Technologies Renewable Heat Fund Contribution to the Grenelle Building Master Plan Diffusion of the Bilan Carbone method Resources Centre for the Territorial Energy Climate Plans (Plans Energie-Climat territoriaux) and National rep in the European Energy Award label. IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 11

Plan ADEME Presentation French Renewable Energies Policy: situation and prospects Overlook Energy Efficiency Legal framework & examples Overlook The French heat fund. an innovative support scheme The new French Demonstration Research fund From global to local or how to reinforce territories strategies and actions - ADEME s contribution examples IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 12

Renewable Energies - Legal framework The French POPE Law (2005-781 13th July 2005) to go forward on the French Factor 4 objective 4 key Objectives for renewables by 2010: 10 % of total primary energy consumption from RES 6,9 % in 2007 (with climatic correction) 21 % of electricity consumption from renewable sources 13 % in 2007 + 50 % contribution from thermal renewables compared to 2004 10,9 Mtoe in 2007 7 % of bio fuels in transports 3,5 % in 2007 Wind power Hydraulic power 88% 6% Urban solid waste: 3% Solar: 0,03% Wood biomass: 2% Biogas: 1% Share 2007 of each resource in the electricity production from renewables Source DGEMP 2008 IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 13

Renewable Energies - Legal framework European Summit 8th and 9th March 2007 European Commission energy-climate package end of 2008 European Objective by 2020: reaching a 20 % share of renewable energies in the European energy mix (final energy) French declination: reaching a 23 % share by 2020 11 % in 2007 Source: DGEMP 2008 - calculation with new European method French Grenelle de l Environnement started in 2007 and ongoing with expected laws Objectives: a strong national strategy and action plan to reinforce France commitment toward sustainable development and Factor 4 (Energy efficiency s objectives will be developed later in the presentation) Renewable energies objectives: - To increase renewables contribution: additionnal 20 Mtoe by 2020 (from 17 to 37 Mtoe) - To foster R&D: Plus 1 G over 4 years 1 for nuclear = 1 for «green technologies» IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 14

Grenelle de l Environnement prospects 2020 French mix potential share: priority on Wind, Biomass and Bio fuels ktoe 40000 35000 30000 25000 20000 15000 10000 5000 0 2006 2012 2020 Others renewables Biofuels Solar PV Wind Hydro Biogas Waste heat Solar thermal Fuel cell Geothermal Biomass Domestic wood Source: COMOP 10 (2008) IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 15

Renewable Energies French incentives Incentives to foster renewable energies: - Income tax credit: 50 % (and up to 70 % in some overseas areas) for energy production equipment using RES and certain types of heat pumps - Feed in tariffs (nominal power < 12 MW) - Call for tenders (nominal power > 12 MW) - Public Subsidies - Value added tax (VAT) reduction: 5,5 % (instead of 19,6 %) for certain renewable integration cases IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 16

Legislative measures for renewable heat Law Grenelle I: Launch of a dedicated «heat fund» Law Grenelle II : Simplified classification of heat networks supplied by at least 50% RE Enhanced connection obligation for new and refurbished buildings to classified networks Concession extension for heat networks in case of RE investments Lowering of RE threshold condition for heat suppliers to be eligible to VAT reduction IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 17

Legislative measures for renewable electricity Budget law 2009: RE tax credit reform: 50% rate for solar photovoltaic installations maintained Creation of a 0% eco-credit for renovation works in existing buildings (including RE investments) up to 30 000 euros Law Grenelle II : Creation of regional RE development and RE network connection master plans Enhanced regulatory framework for onshore wind Simplification of offshore wind and marine energy regulatory framework Total tax exemption for small solar photovoltaic power producers Adaptation of building code to favour RE integration Extension of feed-in tariff system to local authorities IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 18

Other measures of the National Plan Pluriannual Investment Planning, including RES : Electricity, gas, heat Biomass : Launch of «Biomass III» tender procedure in January 2009 for biomass power plants Solar photovoltaic : Launch of tender for large-scale PV free field farms in each French region Adaptation of feed-in tariff system and creation of a new intermediary tariff Drastic simplification of procedures for PV installations on rooftop IEA DSM Task XX ADEME Bernard GINDROZ/Stéphane POUFFARY Madrid, December 7-8, 2009 19

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