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France's wind sector weighs impact of new government

  • : Electricity
  • 24/10/04

Doubts over government policy on onshore wind competed with optimism over offshore wind at the French wind sector's annual conference in Paris on Wednesday.

The event took place a day after the first policy announcements of prime minister Michel Barnier, in which he said his government would "better handle the impacts" of wind energy.

No more detail is available on what this will mean exactly, although far-right party Rassemblement National (RN), which props up Barnier's minority government, is strongly opposed to wind energy. And of two of the parties in his coalition, president Emmanuel Macron's EPR and Barnier's own Les Republicans (LR), the former is supportive of wind, while the latter is more sceptical without being downright opposed, one developer told Argus.

While junior energy minister Olga Givernet told the conference of her intention to reduce the delays developers face, participants Argus spoke to feared Barnier's evocation of "impacts" could mean an expansion of barriers to building new capacity.

"We already take the impacts into account," one developer said, noting that firms perform extensive studies and undertake environmental impact assessments (EIAs). And legal challenges are one of the main obstacles slowing down capacity increases, with one developer calling for better-trained judges to reduce the number of "arbitrary" decisions made in these cases.

Delays in receiving grid connection and EIAs were other factors developers cited.

But the conference was more upbeat on offshore wind. The government will in the coming weeks announce priority zones for offshore wind, which will allow it to launch tenders for 8-10GW of capacity by the end of the year. These will contribute to the country's goal of reaching 18GW of installed capacity by 2035.

At the same time, the increasing occurrence of negative price hours threatens the sector, according to industry body France Renouvelables.

Negative prices can pose a threat to grid stability, according to grid operator RTE. Large quantities of renewables can be shut down suddenly at the beginning of negative price hours, leading to a sharp output slope, which the grid operator has little visibility of, RTE said.

Negative prices are a problem for operators too, even those under contracts for difference (CfDs) which are not directly exposed, according to Jean-Francois Petit of renewables operator Boralex. Operators typically shut down during negative pricing hours, but receive only partial compensation for lost output, he said, while the requirement that production be completely halted can be difficult operationally.

And slow progress on repowering could represent another brake to capacity increases. Repowering is not underpinned by primary legislation, but only by ministerial circulars, one developer said, which offers little certainty to firms that want to undertake it. Meanwhile, height limits imposed for aviation constraints and landscape protection reduce the potential to add taller, more powerful turbines. French turbines are typically much smaller than those in neighbouring countries because of these height limits, which reduces access to higher-quality wind resource.

And an open question remains over potential local content requirements in future tenders for CfDs. These requirements, enabled by the European Net Zero industry Act (NZIA) and supported by energy regulator the CRE, could prove a fillip for manufacturers of energy-transition materiel such as wind turbines, hobbled by competition from Chinese manufacturers.

But incorporation of these requirements would push up costs, requiring higher strike prices at CfDs and more public subsidy. Energy minister Givernet did not appear to give the conference any hints on which way the government would lean, saying that control over both energy prices and security of supply were absolute priorities.

Reaching France's goals by 2028 of 33.2-34.7GW of onshore capacity would require an installation rate of 2.3-2.7 GW/yr, roughly twice rates reached in recent years (see graph).

France onshore capacity and 2028 goals

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24/11/13

Cop: Argentina pulls delegation from Baku

Cop: Argentina pulls delegation from Baku

Montevideo, 13 November (Argus) — Argentina's government today withdrew its delegation from the UN Cop 29 climate summit in Baku, Azerbaijan. The country's foreign affairs ministry confirmed to Argus that the delegation had been told to leave the event, which began on 11 November and will run through 22 November. No reason was given for the decision, but it fits the general policies of President Javier Milei, who has expressed skepticism about climate change. Milei eliminated the country's environment ministry shortly after taking office in December 2023. He is also pursuing investment to monetize oil and gas reserves, with a focus on the Vaca Muerta unconventional formation. Vaca Muerta has an estimated 308 trillion cf of natural gas and 16bn bl of oil, according to the US Energy Information Administration. In October, the government created the Argentina LNG division with a plan to involve private companies and the state-owned YPF to produce and export up to 30mn metric tonnes (t)/yr of LNG by 2030. It wants to export 1mn bl of crude. The plans are closely linked to a new investment framework, known as RIGI, that will provide incentives for large-scale investments. The administration is also pushing hard for investment in critical minerals, including copper and lithium. Argentina has the world's second-largest lithium resources, estimated at 22mn t by the US Geological Survey. It has copper potential that the RIGI would help tap. The government has not specified if pulling out of Cop 29 means Argentina will withdraw from the Paris Agreement, which Argentina ratified in 2016. The country's nationally determined contribution calls for net emissions not to exceed 359mn t of CO2 by 2030. This represents a 21pc reduction of emissions from the maximum reached in 2007. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: UK sets ambitious 2035 climate target


24/11/12
24/11/12

Cop: UK sets ambitious 2035 climate target

London, 12 November (Argus) — The UK government has set a target to cut all greenhouse gas (GHG) emissions by at least 81pc by 2035, from a 1990 baseline, the country's prime minister Keir Starmer said today at the UN Cop 29 climate summit in Baku, Azerbaijan. The target, which will form the basis of the UK's next national climate plan, is in line with recent recommendations from the independent advisory Climate Change Committee . Energy minister Ed Miliband sought the committee's guidance shortly after the Labour government was elected in July. Starmer urged all countries to come forward with new national climate plans — known as nationally determined contributions (NDCs) — at Cop 29. Details of the UK's new NDC are not yet clear, but Starmer said his government is "fully committed" to its pledge of zero-emissions power by 2030. He also repeated his promise for a "government that trod lightly on people's lives". "The UK is stepping up as a climate frontrunner at a time when such leadership is critically needed, co-founder of think-tank E3G Nick Mabey said. "We hope to see detailed implementation plans — ideally with sectoral commitments and a supporting investment roadmap — to lend credibility to its submission." The energy transition "is a huge opportunity", Starmer said, pointing to global appetite for renewables investment. And he noted the "advantage of being a first mover". The country's Labour government, elected in July, has diverged substantially from the previous administration on climate issues. The UK government today announced a "clean industry bonus" — a provisional £27mn ($34.6mn) per GW of offshore wind, to incentivise offshore wind developers to invest in industrial areas, many of which are rooted in the oil and gas industry. This will boost "green jobs" and support sustainable industry, the government said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: UN chief reiterates economic force of transition


24/11/12
24/11/12

Cop: UN chief reiterates economic force of transition

London, 12 November (Argus) — "Doubling down on fossil fuels is absurd", given that solar and wind power are the cheapest forms of new electricity, UN secretary-general Antonio Guterres told the UN Cop 29 climate summit in Baku, Azerbaijan today. The "economic imperative is clearer and more compelling — with every renewables roll out, every innovation, and every price drop", Guterres added. Global investment in renewables and grids last year overtook the amount spent on fossil fuels for the first time, he noted. "The clean energy revolution is here. No group, no business and no government can stop it," Guterres said. Guterres and Simon Stiell, head of the UNFCCC — the UN's climate body — today both gestured to geopolitical challenges. Cop 29 is focused on climate finance — already a fraught topic — and environmental groups have expressed concern about the impact on climate action of Donald Trump's re-election . The UNFCCC process "is strong, it's robust and it will endure", Stiell said today. Guterres and Stiell also emphasised the financial implications of failing to cut emissions or address climate change. "The climate crisis is fast becoming an economy-killer", Stiell said. "Unless all countries can slash emissions deeply, every country and every household will be hammered even harder than they currently are," he added. The G20 group of countries should lead on emissions reduction, Guterres said. And both he — warning against "a tale of two transitions" — and Stiell called for action on climate finance. Countries must decide at Cop 29 on the next stage of a climate finance goal. Developed countries agreed to deliver $100bn/yr to developing countries over 2020-25, but agreement is yet to be reached on the next iteration. Guterres called for more concessional public finance, higher lending capacity for multilateral development banks (MDBs), greater transparency, and for "tapping innovative sources, particularly levies on shipping, aviation, and fossil fuel extraction. Polluters must pay", he said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

IAEA chief sees ‘good sign’ ahead of Iran visit


24/11/12
24/11/12

IAEA chief sees ‘good sign’ ahead of Iran visit

Baku, 12 November (Argus) — The director general of the UN nuclear watchdog, the International Atomic Energy Agency (IAEA), said today that he has seen good signs from the new Iranian administration ahead of his visit to the Iranian capital on 13 November. Speaking to reporters in Baku, Rafael Grossi said he and his colleagues at the IAEA are looking forward to what he described as "a very important visit" with the aim of "re-establishing contact" with the Iranian authorities. The visit will be Grossi's first to Iran since Iranian President Masoud Pezeshkian took office in late July, and comes at a time of increased tensions in the Middle East region. Israel's offensive against Gaza-based militia group Hamas that was triggered by the group's deadly 7 October 2023 cross-border attack on Israel has since expanded into Lebanon and, to an extent, drawn Iran into the fray, with Tehran and Tel Aviv having now traded missile strikes twice in recent months. Israel's latest strike in October has raised fears that Iran could respond not only in kind, but also by speeding up its work to enrich uranium and move the country ever closer to possessing weapons-grade nuclear material. This is despite Iranian officials, not least Iran's supreme leader Ayatollah Ali Khamenei, insisting that Iran has no intention of building or possessing nuclear weapons. "We are looking forward to that [meeting]. It's high time we establish or re-establish contact with the government," Grossi said. "We have been preparing for this meeting for quite a long time." Grossi said he saw it as "a good sign" that the new Iranian administration is showing "a disposition to talk." "Of course, we have to give content and meaning to the conversations. But I am encouraged by the fact that we seem to be having a good agenda in front of us." Damage limitation The meeting comes after the IAEA's board of governors in June passed a resolution calling on Iran to step up its co-operation with the agency, and reverse a decision to restrict access to nuclear sites by de-designating inspectors. Tehran at the time rejected that resolution as "politically biased", prompting a swift denial from Grossi , saying that the agency does not adhere to an "anti-Iran policy". Asked today whether Donald Trump's election victory last week could impact relations with Iran, Grossi admitted that while it will "undoubtedly" have an influence, he expected that the incoming administration would work well with the IAEA, as was the case during Trump's first term. "We will adjust to that," Grossi said. A diplomatic source with knowledge of the situation described the ongoing tensions in the Mideast Gulf region as "out of control," and said they are hopeful Grossi's visit to the Iranian capital will help "keep a lid on the situation" and help to find some badly-needed "solutions". If Grossi achieves what he set out to do on this visit, it could lay the groundwork for any co-operation that the agency may have with the new administration around how best to deal with the Iranian nuclear threat, the source said. By Bachar Halabi and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Indonesian energy firms reaffirm net zero efforts


24/11/12
24/11/12

Cop: Indonesian energy firms reaffirm net zero efforts

Singapore, 12 November (Argus) — Major Indonesian energy firms reaffirmed their commitment to decarbonisation at the UN Cop 29 climate summit in Baku, Azerbaijan, but also indicated the challenges they face in achieving targets. Indonesian state-owned utility PLN is in the process of redesigning its national electricity plan and from now until 2040 needs to add around 102GW of additional capacity, the firm's president director Darmawan Prasodjo said yesterday. Out of this, 75pc is to come from renewable energy, 5GW from nuclear power and 22GW from gas. But there is a mismatch between the location of large-scale renewable energy resources such as geothermal and hydropower plants, and demand centres, said Darmawan. Up to 70,000km of transmission lines have to be built to move energy from those resources to the centre of demand, said Darmawan. Additionally, a smart grid is also necessary to deal with intermittency in variable renewable energy sources such as wind and power. But the price tag to develop these transmission lines and smart grid would amount to a whopping $235bn over 2024-40. State-owned energy firm Pertamina has allocated 8pc of its capital investment towards new and renewable energy over 2025-29, said its chief executive officer John Anis, without disclosing the exact amount. The company also identified targets it hopes to achieve by 2029 as part of its low-carbon business growth, such as 60mn kilolitres of biofuels sales, 1.4GW of geothermal capacity and 1.5mn t of CO2 reductions with carbon capture and storage (CCS). The firm also declared support for the zero routine flaring initiative by the World Bank. "Pertamina is one of the most important oil and gas companies in southeast Asia, producing more than 1mn b/d, and is a key factor for the Indonesian economy," said Demetrios Papathanasiou, global director for the World Bank, emphasising the importance of Pertamina's move to develop oil and gas without gas flaring. Companies need to diversify, divest and decarbonise, said Retina Rosabai, director and group chief financial officer of coal firm Indika Energy. To diversify, firms first need to divest, because funding is limited, she said, adding that Indika has divested from coal-related assets, coal contract mining and coal logistics. But there is still much uncertainty over rules and regulations, although Indonesia's new climate envoy Hashim Djojohadikusumo reaffirmed the country's commitment to climate goals, which will raise confidence, Retina said. Hashim is the brother of Indonesian president Prabowo Subianto, who took office last month. Hashim also reiterated that CCS holds huge potential in Indonesia, with an estimated 500 gigatonnes of CO2 storage capacity. Additionally, the country has also verified 575mn t of CO2 for offtake, with some parties already making commitments to purchase various amounts, he said. The government is also finalising the assessment of a further 600mn t of CO2, which is expected to be offered in the next few months, he said. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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