France picks up the pace with renewables • Table.Briefings

Dear reader,

On Monday, Ukrainian managed the biggest advance since the beginning of the war. In the south of the country, they broke through Russian defenses and advanced along the Dnieper River, threatening supply lines for thousands of Russian troops. Meanwhile, the West looks to Moscow with great concern. After Ukraine sent off an application to join NATO on Friday, it now fears a Russian nuclear attack on Kyiv. An agreement on further sanctions has yet to be reached. Read the details in the News.

In nuclear-powered France, the government is picking up the pace in the expansion of renewable energies. A new draft law provides for permits to be issued more quickly and court proceedings to be shortened. Claire Stam reports why the bill doesn’t go far enough for some experts.

This week, the EU Commission plans to present an action plan with further measures to combat the energy crisis. On Friday, the member states will meet in Prague for an informal meeting to discuss it. The list of measures includes strengthening the liquidity of companies.

Luc Rémont is the French government’s favorite to become head of the state-owned energy group EDF. The 53-year-old brings to the table what is needed for the mammoth task of reforming EDF: Contacts, financial knowledge, loyalty and international industrial experience. Read more about him in today’s Profile.

Your
Lisa-Martina Klein

Paris’ newfound love for renewable energy

By

Claire Stam

As the European Union continues to increase its renewable energy targets, deployment on the ground must accelerate to meet those goals. That’s the strategy Paris is pursuing: Four days after French President Emmanuel Macron inaugurated France’s first offshore wind farm in Saint-Nazaire, the government put its money where its mouth is, presenting the draft law to accelerate renewable energy to the Council of Ministers on Monday, September 26.

According to the head of state, this text should allow doubling the pace of renewable energy development by halving the time to completion. It is to be accompanied by a regulatory measure that will reduce litigation deadlines to a maximum of 30 months.

In 2021, renewables accounted for only 19.3 percent of gross final energy consumption in France, far below the 23.7 percent target. At sea, the first 80 wind turbines are currently being commissioned off the coast of Saint-Nazaire, while 5,700 turbines have already been installed in Europe. On land, Germany has installed four times as many masts as France, even though the country is more densely populated. “Our neighbors have done more, often better and, above all, faster,” admitted Emmanuel Macron at the inauguration of France’s first offshore wind farm.

To catch up with his European partners, the president now wants to move “much faster,” in particular by shortening approval deadlines. France is behind not because of a lack of projects but “because of our administrative and dispute procedures,” argues Agnès Pannier-Runacher, the minister for the energy transition.

Good, but not optimal

“The draft law goes in the right direction but is by no means sufficient to make up for this backlog, as it does not take into account onshore wind. This is due to the political balance games in the National Assembly,” as Philippe Quirion, researcher in environmental and energy economics and research director at CNRS CIRED, explains to Europe.Table. “The government does not have an absolute majority in the National Assembly,” reminds the expert. “The right and the extreme right are against the expansion of onshore wind. On the left side of the political spectrum, a large number of deputies are in favor, but it seems unlikely that left-wing deputies will want to vote for the government bill.”

In terms of funding for ENR projects, the bill does not provide for differentiating feed-in tariffs between different areas of the country, depending on whether they are more or less windy or get more or less sun. “But that would be necessary,” Philippe Quirion points out. Why is it important? This provision makes it possible to make renewable energy projects financially attractive in French regions where they are not yet present. In other words, this provision makes it possible to unbundle the concentration of ENR projects. For example, Philippe Quirion explains that onshore wind farms in France are mainly concentrated in the Grand-Est and Hauts de France regions.

Additionally, there are plans to install floating wind turbines in the Mediterranean Sea – even though this aspect is not part of the draft law. The reason for opting for floating wind turbines is “that the depth of the seabed in the Mediterranean is too great to install fixed wind turbines,” the expert explains.

In parallel with the bill to accelerate renewable energy, the government has also sent out a preliminary draft law “aimed at accelerating the construction of new nuclear plants near existing nuclear sites”. “The government also wants to accelerate the expansion of nuclear power. This raises questions because the National Commission for Public Debate will launch a debate on the advisability of this expansion from October 27,” explains Philippe Quirion, who recalls that the origin of the debate is based on the need – or non-necessity – of new nuclear power plants.

France, no exception

Although France is undeniably lagging behind in the deployment of renewable energy, “the problem of permit issuance is not specific to France,” notes Harriet Fox, energy and climate analyst at the think tank Ember and author of a study on the subject published in July.

Under current EU law, permits for renewable energy projects cannot take longer than two years to be issued. However, the study shows that in the 18 countries analyzed for onshore wind projects, the average time for issuing permits has consistently exceeded the two-year limit, in some cases as many as five times. For solar, the two-year limit was exceeded in nine of the 12 countries analyzed, with timelines as long as four years.

At projected build-out rates, only four of the 27 EU countries (Finland, Croatia, Lithuania, and Sweden) will achieve annual wind energy capacity growth high enough to meet the Paris Agreement’s 1.5-degree standard. The EU as a whole is also not on track to achieve the required build-out rates for solar energy. In particular, Harriet Fox cites the lack of administrative staff, the lack of digitalization, and the division of procedures among different administrative departments as the main reasons for the delay.

A situation in Europe that represents a major challenge for the REPowerEU plan presented by the European Commission. This plan aims for the EU to reach a renewable energy production capacity of 1236 GW by 2030, compared to a target of 1067 GW in previous plans, and an installed capacity of 513 GW in 2021. Important detail: REPowerEU does not specify targets at national level.

Europe looks to Moscow with great concern

A diplomatic meeting in Brussels failed yesterday to reach an agreement on the eighth EU sanctions package against Russia announced by EU Commission President Ursula von der Leyen. Several diplomats confirmed to Table.Media, that talks on the issue will continue on Tuesday. The sticking point is an oil price cap, they said.

The sanctions package is intended to respond to the sham referendums in Russian-occupied areas of Ukraine, the mobilization of more troops, and President Vladimir Putin’s threat to use nuclear weapons, von der Leyen said.

The EU already decided to halt all Russian crude oil imports by sea into the EU starting December 5. Now, a new cap on oil prices among G7 countries intends, that Russia will earn less on its oil worldwide. Many hope an agreement can be reached by Friday’s EU summit in Prague.

Russia annexed four territories of Ukraine last week and began the partial mobilization of hundreds of thousands of reservists. Last Friday, Ukraine applied for NATO membership and reclaimed the Russian-controlled territories. In general, there is a growing concern in the West about a massive escalation of the war that has been going on for seven months, especially concerning the nuclear threat.

NATO Secretary General Jens Stoltenberg said Friday that, despite the threats, the alliance had seen no change in its nuclear posture. However, a Russian nuclear attack on Kyiv would have “severe consequences” for Moscow.

Meanwhile, the European Union has signed a Memorandum of Understanding on €5 billion in macro-financial assistance for Ukraine. “This is another gesture of the EU determined to support Ukraine in winning this war, rebuilding and pursuing European future,” Prime Minister Denys Shmyhal wrote on Twitter on Monday. The Head of Government thanked von der Leyen and Commission Vice President Valdis Dombrovskis for this aid, which flows as a long-term loan.

Dombrovskis wrote via Twitter that the money would be used for “immediate liquidity needs, pay salaries and pensions.” The first part would flow in mid-October, with another two parts later this year. The money is part of a total aid package of €9 billion announced in May. €1 billion was already disbursed in early August. Ella Joyner with dpa

Energy crisis: Commission action plan expected this week

After agreeing on emergency energy measures last Friday, EU member states will gather for an informal meeting in Prague on October 7. They will discuss the final measures against the energy crisis, based on an action plan, that the Commission will present in the coming days.

“We will discuss the three most pressing – and interlinked – issues for us all, namely Russia’s war in Ukraine, energy, and the economic situation,” says the invitation sent by Council President Charles Michel to the leaders of the 27 member states.

Leaders are still trying to balance budgetary support and energy conservation. In this volatile context, the ministers asked the Commission to come up with concrete proposals “very quickly,” with a “clear” objective, as one Elysée Palace aide put it: To take action to reduce gas prices and lower electricity prices.

Ministers called for several concrete measures. In particular, the TTF index, or gas price index, which “no longer reflects the energy reality of today,” is to be revised. In addition, the joint gas procurement platforms should be accelerated to strengthen market power and reduce prices, especially LNG gas prices.

Measures are not yet sufficient

On the list of measures to be implemented “quickly” are also margin calls, strengthening corporate liquidity and limiting price volatility. This means that the Commission has been instructed by ministers to come up with proposals “very quickly” based on its non-paper. “It is not yet clear exactly when,” but in such a way that ministers can quickly decide on new emergency measures to bring down gas and electricity prices.

Last Friday, Europeans pledged to cut their electricity consumption by “at least” 5 percent by March 31, 2023, at peak times when power is most expensive, and by 10 percent on average. They also agreed to introduce a levy on the extraordinary profits that companies made due to high energy prices.

Those that produce electricity at low cost (nuclear, renewables, lignite) and sell it at market prices will see their revenues skimmed between December 1 and June 30, 2023, once a megawatt-hour exceeds €180. Fossil energy players (oil giants, refiners), whose profits have also soared, will be charged a “solidarity contribution” of at least 33 percent on their excess profits “in 2022 and/or 2023.” These regulations would save more than €140 billion that member states can use to support the most vulnerable households and companies.

However, the Twenty-Seven know this, these measures are not enough. “We need to do more. We are in an energy war with Russia,” Czech Industry Minister Jozef Sikela, whose country holds the rotating EU Council presidency, commented Friday. French Energy Transition Minister Agnès Pannier-Runacher added: “We will have to go much faster and much further.” cst

EU Commission talks with Germany about billion-euro support plan

The European Commission, which oversees EU antitrust policy, said on Monday it was talking with Germany about its energy support package, which critics say will distort competition in the bloc by giving an advantage to German business.

The €200 billion ($195.24 billion) “defensive shield”, including a gas price brake and a cut in sales tax for fuel, is designed to protect companies and households from the impact of soaring energy prices.

“We are fully committed to preserving a level playing field and a single market, and avoiding harmful subsidy races,” a European Commission spokesperson told a news conference when asked about the German package. “What I can say is that we are in contact with the German authorities on this matter,” the spokesperson continued, without elaborating, but noting that it was talking to other national authorities too.

The Commission, which supervises competition policy in the 27-nation EU, rules on whether state aid is legal or not after being notified by members of their plans. The EU commissioner for the internal market, Frenchman Thierry Breton, reacted to the German plan in a tweet on Friday, saying the EU needed to be vigilant about the level playing field and asked what room for maneuver other EU members had.

Debt brake to be complied with

The German package dwarfs what other EU governments have set aside. German Finance Minister Christian Lindner defended the energy relief package in the face of international criticism on Monday on the sidelines of a meeting of euro finance ministers in Luxembourg. “The measures are proportionate in terms of the size of the German economy and in terms of their duration until 2024, “ Lindner said. He said they were in line with what other countries in Europe had introduced and were therefore “certainly not oversized“.

Lindner also reiterated that Germany would comply with the debt brake next year. This will then allow the federal government to take on only limited new debt. The defense umbrella, on the other hand, will be financed this year via a so-called special fund and will then be disbursed gradually. The FDP politician said the money would be “very much earmarked to avert economic damage in the particularly vulnerable German economy“.

In Luxembourg on Monday, the finance ministers of the 19 euro states discussed steps to protect the hardest-hit sectors from skyrocketing energy prices. A draft declaration by the finance ministers of the euro states said measures by individual countries must be coordinated to protect cross-border competition in the European Union. rtr/dpa

ENVI votes for alternative REPowerEU funding

On Monday, the EU Parliament’s Environment Committee (ENVI) confirmed the agreement reached by the rapporteurs last week. According to the agreement, the EU Commission’s REPower-EU program should not be partly financed by certificates from the Market Stability Reserve (MSR) of the European Emissions Trading System (ETS).

A cross-party alternative proposal envisages that €20 billion would instead be raised from an earlier sale of emission allowances earmarked for a later date. This so-called frontloading means that certificates that were originally not to be sold until between 2026 and 2030 would now end up on the market as early as 2025.

It is true that fresh money is needed to finance the faster expansion of renewable energies and LNG terminals, commented Tiemo Wölken, climate policy spokesman for the S&D parliamentary group. “But the EU Commission’s proposal to sell allowances from the European emissions trading reserve for this purpose would damage confidence in this instrument and lead to additional emissions.” For EU companies, this would mean that they would be relieved in the crisis, but would still have to implement their decarbonization plans, he explained.

The plenary vote is still scheduled to take place in October. luk

AFIR adopted in Transportation Committee

Late Monday night, the EU Parliament’s Transport Committee (TRAN) adopted the report on the establishment and expansion of a charging infrastructure (AFIR) with a clear majority of 36 votes in favor and 2 against. As expected, the previously negotiated compromises of the rapporteur Ismail Ertug (S&D) all received broad approval.

They stipulate charging stations every 60 kilometers on major European roads by 2026 and hydrogen refueling stations every 100 kilometers by 2028. Additionally, countries with small EV fleets will be required to add 3 kW of charging capacity per newly registered EV. With larger fleets, the charging capacity to be added decreases for each additional EV. Similar expansion quotas are also planned for plug-in hybrids (Europe.Table reported).

The AFIR is intended to create the framework conditions for climate-neutral transport and ensure that alternative fuels are equally available throughout Europe and accessible to all. Charging must be as easy as refueling, Ertug demands. “With the European Parliament’s proposal, we are improving the coverage and performance of charging stations.” Card payment would become mandatory at all charging stations and more price transparency would be created. In the future, operators of charging stations would have to display the ad hoc price in “price per kWh” before the charging process, explains the SPD transport politician.

Shadow rapporteur Jens Gieseke (EPP) is now calling on the member states to act. They must “finally do their homework”, as they have “so far done far too little” in expanding the charging infrastructure and hydrogen filling stations.

Ertug did not receive a majority for his amendment, which provided for penalties for non-compliance with the mandatory expansion targets for member states and transparency requirements for charging station operators. Gieskeke’s EPP, the Renew Group and the ultra-conservative EKR as well as the right-wing ID voted against. However, Ertug intends to reintroduce the amendment during the vote in plenary in mid-October. luk

Parliament votes on standardized charging cables

Today, the European Parliament will hold a final vote on the introduction of standardized charging cables in the EU. This should lead to more frequent reuse of charging cables for smartphones, tablets and cameras. What sounds like a small measure has a significant impact. Consumers can save up to €250 million a year, according to Commission estimates, by no longer having to buy unnecessary charging cables. Additionally, discarded and unused chargers account for an estimated 11,000 tons of e-waste per year.

On June 7, 2022, the negotiators of the Parliament and the Council had informally agreed on a compromise. After the vote in the Parliament, the Council must also agree.“The uniform charging cable is a great success for climate protection and resource conservation, as it will save up to 1,000 tons of electronic waste per year across Europe,” said Anna Cavazzini (Greens), chair of the Consumer Committee and shadow rapporteur, with regard to the vote. Two years after entry into force, only devices with a USB-C charging socket will then be allowed on the market.

“To ensure that the cable clutter in our technology drawers really does come to an end, the European Parliament has succeeded in making it mandatory for laptops, e-readers and navigation devices to also be equipped with the uniform charging cable,” Cavazzini continued. For laptops, however, there will be a transitional period of 40 months after entry into force. Consumers can then decide whether they want to buy a device with a new charging cable or continue to use their existing charging cable.

Proposal on the right to repair comes in November

On November 30, the Commission plans to launch another law that will also provide financial relief to consumers and reduce resource consumption and emissions: the right to repair. Parliament has been pushing for this for more than a decade, explained Cavazzini, who asked the Commission for a legislative proposal on this in the spring. The goal of the law is for manufacturers to design their products to be durable and repairable by design. It is also about banning the planned aging of products (obsolescence) and making spare parts cheaper and more accessible.

According to a Eurobarometer survey, 79 percent of EU citizens think manufacturers should be required to make it easier to repair digital devices or replace their individual parts. 77 percent would rather repair their devices than replace them. vis

Further details on EU raw materials package revealed

After the Commission launched a public consultation on an EU raw materials law last week, more information has emerged about its plans. The package of measures, which the Commission plans to present early next year, is to be based on four pillars, as Europe.Table learned.

First, criteria for prioritizing particularly critical raw materials are to be developed. The Commission’s previous list from 2020, which will be regularly revised by next year, includes 30 raw materials. This number is now to be reduced on the basis of solid criteria.

The Commission wants to make raw material monitoring more dynamic and establish a network of competent national authorities for this purpose. Experience and expertise from the member states will thus be pooled at European level.

All stages of the European value chain – mining, refining, processing and recycling – are to be strengthened, with a particular focus on the recycling stage. Strategic projects are to be identified to direct private investment in particular into the sector. These could, for example, be proposed by the member states and then jointly selected by the Commission and the network of authorities. Strategic projects in other countries are also an option, he said. Additionally, measures such as strategic stockpiling are also being considered.

The fourth pillar should be to create a level playing field within the EU. A harmonized approach is necessary. Here, too, special attention is being paid to recycling projects at national level. leo

Environment Committee calls for higher EU climate targets

On Monday, MEPs from the EU Parliament’s Environment Committee (ENVI) adopted a resolution outlining their demands for the 2022 World Climate Change Conference in Sharm el Sheikh (COP27). They call for the EU and all G20 countries to show leadership and update their nationally determined contributions (NDCs) to global emission reductions (GHGs) accordingly to close the gap to the 1.5°C target. At the same time, however, MEPs made it clear that they expect the Fit for 55 package to achieve the EU’s 2030 target.

The resolution also highlights the importance of climate finance for successful climate action in less wealthy countries. MEPs call on all industrialized countries to ensure that the target of $100 billion in annual climate finance is met and that the money is disbursed as early as 2022. luk

Ex-Prime Minister Borissov’s party wins Bulgarian election

The conservative GERB party of former Prime Minister Boyko Borissov won Bulgaria’s parliamentary election. After 99 percent of the votes were counted, his center-right party came in with 25.4 percent of the vote, according to data released Monday. The liberal We Continue Change (PP) movement of Kiril Petkov, the head of government ousted in June, came in at 20.2 percent in Sunday’s election, according to the report. Experts believe that coalition negotiations are likely to be difficult.

According to Vessela Tcherneva, head of the Sofia office of the European Council on Foreign Relations, the vote in Bulgaria could produce two types of coalitions: an anti-corruption coalition, in which GERB under Boyko Borissov would find no place, or a geopolitical coalition of the centrist parties, which however would be possible only if Borissov would resign from chair of his party. The third option, a GERB-led “coalition of the back-stage” is also possible, but highly risky for the reputation of the main political force, also an EPP member.

The scenario under which there is no coalition possible would undermine parliamentary democracy in Bulgaria and will further tilt the balance towards the pro-Russian president Radev.

The parliamentary election in EU member Bulgaria was the country’s fourth in less than two years. Petkov’s government had collapsed in June after only six months in office. One of the four parties had left the coalition, and support for a minority government failed to materialize. In 2021, Bulgarians had already been called to vote three times for a parliament. The election campaign was dominated by the Ukraine war and uncertain gas supplies. The EU country has close historical and cultural ties with Russia. rtr/klm

Mammoth task: Luc Rémont will become new head of EDF

Luc Rémont, formerly Schneider Electric, is now to head the French energy group EDF.

A successor for the French state-owned energy group EDF was sought for months. Luc Rémont, from the French electrical engineering group Schneider Electric, has now been proposed as the new boss by the Elysée Palace. He brings international industrial experience and financial knowledge to the table and has already worked in the French Finance and Economy Ministries. He is to replace 67-year-old Jean-Bernard Lévy, in office since 2014, at the helm. Lévy’s mandate expires in March. An exact date for the replacement is not yet known, but it is likely to be sooner than March. It was said that when the successor is found, Lévy will step down.

Economy and Finance Minister Bruno Le Maire had already defined the profile in the summer: “Someone who has a handle on large industrial programs.” The person should also have a “sense of compromise” to reform the utility while not angering unions and the EU Commission. Rémont, like his predecessor, is initially expected to combine the two posts, that of president and that of general manager. However, it is not impossible that the offices will be split again. The 53-year-old Rémont, who is little known to the public, was the government’s favorite from the start.

Christel Heydemann, who has been general manager of Orange for several months, worked with Rémont for a long time at Schneider Electric. She sees him as a suitable candidate. “He has many qualities. A great knowledge of the Bercy Ministry of Economy and Finance, experience as a banker, and at Schneider he dealt with energy transition,” she told Le Monde. Additionally, she said, he is internationally experienced. She even goes so far as to say, “I’m a big fan”.

An almost impossible task

Rémont faces the colossal task of getting the ailing utility back on track. Nearly half of the 56 nuclear reactors are idle for maintenance or have corrosion problems. The goal is to have as many power plants running again as possible before winter. EDF’s program is very optimistic and there have already been delays for several weeks, adding uncertainty to the energy crisis across Europe. The magazine “L’Express” sees it as a “Herculean task”, and the daily newspaper “Le Parisien” wrote of Rémont: He “stands at the foot of a mountain.”

Rémont will have to prove his diverse experience in the public and private sectors. He had been at Schneider Electric since 2014, initially in charge of its French operations. Rémont attended the elite Polytechnique College of Engineers and then began his career at the Ministry of Defense before moving to the Ministry of Economy and Finance. He spent seven years at investment bank Merrill Lynch, including as head of its French branch, which is an advantage given EDF’s financial problems. The utility has €43 billion in debt, due in part to government measures to cap electricity tariffs.

He also worked in the cabinet under Nicolas Sarkozy and Thierry Breton, the current EU commissioner for the internal market, when they were finance and economy ministers. This means Rémont also has a confidant in the EU, which could prove useful in future negotiations on nuclear power. “Luc Rémont knows exactly how public decisions are made, which is very useful for an EDF chief,” said a former adviser to Sarkozy. And he is “very loyal”.

He will need loyalty to the government. The state, which holds 84 percent of EDF, wants to take over the utility outright. Negotiations have recently been fraught with tension with EDF’s leadership, especially with its chief executive Lévy, who was still appointed by former Socialist President François Hollande. There is also a need to move forward with the program of new high-pressure reactors EPR announced by President Emmanuel Macron. The first two are to be built at Penly in northern France. All together, it almost seems like an impossible task. Tanja Kuchenbecker

EUROPE.TABLE EDITORS

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Wirth

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Landenberger

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Klein

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Dear reader,

On Monday, Ukrainian managed the biggest advance since the beginning of the war. In the south of the country, they broke through Russian defenses and advanced along the Dnieper River, threatening supply lines for thousands of Russian troops. Meanwhile, the West looks to Moscow with great concern. After Ukraine sent off an application to join NATO on Friday, it now fears a Russian nuclear attack on Kyiv. An agreement on further sanctions has yet to be reached. Read the details in the News.

In nuclear-powered France, the government is picking up the pace in the expansion of renewable energies. A new draft law provides for permits to be issued more quickly and court proceedings to be shortened. Claire Stam reports why the bill doesn’t go far enough for some experts.

This week, the EU Commission plans to present an action plan with further measures to combat the energy crisis. On Friday, the member states will meet in Prague for an informal meeting to discuss it. The list of measures includes strengthening the liquidity of companies.

Luc Rémont is the French government’s favorite to become head of the state-owned energy group EDF. The 53-year-old brings to the table what is needed for the mammoth task of reforming EDF: Contacts, financial knowledge, loyalty and international industrial experience. Read more about him in today’s Profile.

Your
Lisa-Martina Klein

Paris’ newfound love for renewable energy

By

Claire Stam

As the European Union continues to increase its renewable energy targets, deployment on the ground must accelerate to meet those goals. That’s the strategy Paris is pursuing: Four days after French President Emmanuel Macron inaugurated France’s first offshore wind farm in Saint-Nazaire, the government put its money where its mouth is, presenting the draft law to accelerate renewable energy to the Council of Ministers on Monday, September 26.

According to the head of state, this text should allow doubling the pace of renewable energy development by halving the time to completion. It is to be accompanied by a regulatory measure that will reduce litigation deadlines to a maximum of 30 months.

In 2021, renewables accounted for only 19.3 percent of gross final energy consumption in France, far below the 23.7 percent target. At sea, the first 80 wind turbines are currently being commissioned off the coast of Saint-Nazaire, while 5,700 turbines have already been installed in Europe. On land, Germany has installed four times as many masts as France, even though the country is more densely populated. “Our neighbors have done more, often better and, above all, faster,” admitted Emmanuel Macron at the inauguration of France’s first offshore wind farm.

To catch up with his European partners, the president now wants to move “much faster,” in particular by shortening approval deadlines. France is behind not because of a lack of projects but “because of our administrative and dispute procedures,” argues Agnès Pannier-Runacher, the minister for the energy transition.

Good, but not optimal

“The draft law goes in the right direction but is by no means sufficient to make up for this backlog, as it does not take into account onshore wind. This is due to the political balance games in the National Assembly,” as Philippe Quirion, researcher in environmental and energy economics and research director at CNRS CIRED, explains to Europe.Table. “The government does not have an absolute majority in the National Assembly,” reminds the expert. “The right and the extreme right are against the expansion of onshore wind. On the left side of the political spectrum, a large number of deputies are in favor, but it seems unlikely that left-wing deputies will want to vote for the government bill.”

In terms of funding for ENR projects, the bill does not provide for differentiating feed-in tariffs between different areas of the country, depending on whether they are more or less windy or get more or less sun. “But that would be necessary,” Philippe Quirion points out. Why is it important? This provision makes it possible to make renewable energy projects financially attractive in French regions where they are not yet present. In other words, this provision makes it possible to unbundle the concentration of ENR projects. For example, Philippe Quirion explains that onshore wind farms in France are mainly concentrated in the Grand-Est and Hauts de France regions.

Additionally, there are plans to install floating wind turbines in the Mediterranean Sea – even though this aspect is not part of the draft law. The reason for opting for floating wind turbines is “that the depth of the seabed in the Mediterranean is too great to install fixed wind turbines,” the expert explains.

In parallel with the bill to accelerate renewable energy, the government has also sent out a preliminary draft law “aimed at accelerating the construction of new nuclear plants near existing nuclear sites”. “The government also wants to accelerate the expansion of nuclear power. This raises questions because the National Commission for Public Debate will launch a debate on the advisability of this expansion from October 27,” explains Philippe Quirion, who recalls that the origin of the debate is based on the need – or non-necessity – of new nuclear power plants.

France, no exception

Although France is undeniably lagging behind in the deployment of renewable energy, “the problem of permit issuance is not specific to France,” notes Harriet Fox, energy and climate analyst at the think tank Ember and author of a study on the subject published in July.

Under current EU law, permits for renewable energy projects cannot take longer than two years to be issued. However, the study shows that in the 18 countries analyzed for onshore wind projects, the average time for issuing permits has consistently exceeded the two-year limit, in some cases as many as five times. For solar, the two-year limit was exceeded in nine of the 12 countries analyzed, with timelines as long as four years.

At projected build-out rates, only four of the 27 EU countries (Finland, Croatia, Lithuania, and Sweden) will achieve annual wind energy capacity growth high enough to meet the Paris Agreement’s 1.5-degree standard. The EU as a whole is also not on track to achieve the required build-out rates for solar energy. In particular, Harriet Fox cites the lack of administrative staff, the lack of digitalization, and the division of procedures among different administrative departments as the main reasons for the delay.

A situation in Europe that represents a major challenge for the REPowerEU plan presented by the European Commission. This plan aims for the EU to reach a renewable energy production capacity of 1236 GW by 2030, compared to a target of 1067 GW in previous plans, and an installed capacity of 513 GW in 2021. Important detail: REPowerEU does not specify targets at national level.

Europe looks to Moscow with great concern

A diplomatic meeting in Brussels failed yesterday to reach an agreement on the eighth EU sanctions package against Russia announced by EU Commission President Ursula von der Leyen. Several diplomats confirmed to Table.Media, that talks on the issue will continue on Tuesday. The sticking point is an oil price cap, they said.

The sanctions package is intended to respond to the sham referendums in Russian-occupied areas of Ukraine, the mobilization of more troops, and President Vladimir Putin’s threat to use nuclear weapons, von der Leyen said.

The EU already decided to halt all Russian crude oil imports by sea into the EU starting December 5. Now, a new cap on oil prices among G7 countries intends, that Russia will earn less on its oil worldwide. Many hope an agreement can be reached by Friday’s EU summit in Prague.

Russia annexed four territories of Ukraine last week and began the partial mobilization of hundreds of thousands of reservists. Last Friday, Ukraine applied for NATO membership and reclaimed the Russian-controlled territories. In general, there is a growing concern in the West about a massive escalation of the war that has been going on for seven months, especially concerning the nuclear threat.

NATO Secretary General Jens Stoltenberg said Friday that, despite the threats, the alliance had seen no change in its nuclear posture. However, a Russian nuclear attack on Kyiv would have “severe consequences” for Moscow.

Meanwhile, the European Union has signed a Memorandum of Understanding on €5 billion in macro-financial assistance for Ukraine. “This is another gesture of the EU determined to support Ukraine in winning this war, rebuilding and pursuing European future,” Prime Minister Denys Shmyhal wrote on Twitter on Monday. The Head of Government thanked von der Leyen and Commission Vice President Valdis Dombrovskis for this aid, which flows as a long-term loan.

Dombrovskis wrote via Twitter that the money would be used for “immediate liquidity needs, pay salaries and pensions.” The first part would flow in mid-October, with another two parts later this year. The money is part of a total aid package of €9 billion announced in May. €1 billion was already disbursed in early August. Ella Joyner with dpa

Energy crisis: Commission action plan expected this week

After agreeing on emergency energy measures last Friday, EU member states will gather for an informal meeting in Prague on October 7. They will discuss the final measures against the energy crisis, based on an action plan, that the Commission will present in the coming days.

“We will discuss the three most pressing – and interlinked – issues for us all, namely Russia’s war in Ukraine, energy, and the economic situation,” says the invitation sent by Council President Charles Michel to the leaders of the 27 member states.

Leaders are still trying to balance budgetary support and energy conservation. In this volatile context, the ministers asked the Commission to come up with concrete proposals “very quickly,” with a “clear” objective, as one Elysée Palace aide put it: To take action to reduce gas prices and lower electricity prices.

Ministers called for several concrete measures. In particular, the TTF index, or gas price index, which “no longer reflects the energy reality of today,” is to be revised. In addition, the joint gas procurement platforms should be accelerated to strengthen market power and reduce prices, especially LNG gas prices.

Measures are not yet sufficient

On the list of measures to be implemented “quickly” are also margin calls, strengthening corporate liquidity and limiting price volatility. This means that the Commission has been instructed by ministers to come up with proposals “very quickly” based on its non-paper. “It is not yet clear exactly when,” but in such a way that ministers can quickly decide on new emergency measures to bring down gas and electricity prices.

Last Friday, Europeans pledged to cut their electricity consumption by “at least” 5 percent by March 31, 2023, at peak times when power is most expensive, and by 10 percent on average. They also agreed to introduce a levy on the extraordinary profits that companies made due to high energy prices.

Those that produce electricity at low cost (nuclear, renewables, lignite) and sell it at market prices will see their revenues skimmed between December 1 and June 30, 2023, once a megawatt-hour exceeds €180. Fossil energy players (oil giants, refiners), whose profits have also soared, will be charged a “solidarity contribution” of at least 33 percent on their excess profits “in 2022 and/or 2023.” These regulations would save more than €140 billion that member states can use to support the most vulnerable households and companies.

However, the Twenty-Seven know this, these measures are not enough. “We need to do more. We are in an energy war with Russia,” Czech Industry Minister Jozef Sikela, whose country holds the rotating EU Council presidency, commented Friday. French Energy Transition Minister Agnès Pannier-Runacher added: “We will have to go much faster and much further.” cst

EU Commission talks with Germany about billion-euro support plan

The European Commission, which oversees EU antitrust policy, said on Monday it was talking with Germany about its energy support package, which critics say will distort competition in the bloc by giving an advantage to German business.

The €200 billion ($195.24 billion) “defensive shield”, including a gas price brake and a cut in sales tax for fuel, is designed to protect companies and households from the impact of soaring energy prices.

“We are fully committed to preserving a level playing field and a single market, and avoiding harmful subsidy races,” a European Commission spokesperson told a news conference when asked about the German package. “What I can say is that we are in contact with the German authorities on this matter,” the spokesperson continued, without elaborating, but noting that it was talking to other national authorities too.

The Commission, which supervises competition policy in the 27-nation EU, rules on whether state aid is legal or not after being notified by members of their plans. The EU commissioner for the internal market, Frenchman Thierry Breton, reacted to the German plan in a tweet on Friday, saying the EU needed to be vigilant about the level playing field and asked what room for maneuver other EU members had.

Debt brake to be complied with

The German package dwarfs what other EU governments have set aside. German Finance Minister Christian Lindner defended the energy relief package in the face of international criticism on Monday on the sidelines of a meeting of euro finance ministers in Luxembourg. “The measures are proportionate in terms of the size of the German economy and in terms of their duration until 2024, “ Lindner said. He said they were in line with what other countries in Europe had introduced and were therefore “certainly not oversized“.

Lindner also reiterated that Germany would comply with the debt brake next year. This will then allow the federal government to take on only limited new debt. The defense umbrella, on the other hand, will be financed this year via a so-called special fund and will then be disbursed gradually. The FDP politician said the money would be “very much earmarked to avert economic damage in the particularly vulnerable German economy“.

In Luxembourg on Monday, the finance ministers of the 19 euro states discussed steps to protect the hardest-hit sectors from skyrocketing energy prices. A draft declaration by the finance ministers of the euro states said measures by individual countries must be coordinated to protect cross-border competition in the European Union. rtr/dpa

ENVI votes for alternative REPowerEU funding

On Monday, the EU Parliament’s Environment Committee (ENVI) confirmed the agreement reached by the rapporteurs last week. According to the agreement, the EU Commission’s REPower-EU program should not be partly financed by certificates from the Market Stability Reserve (MSR) of the European Emissions Trading System (ETS).

A cross-party alternative proposal envisages that €20 billion would instead be raised from an earlier sale of emission allowances earmarked for a later date. This so-called frontloading means that certificates that were originally not to be sold until between 2026 and 2030 would now end up on the market as early as 2025.

It is true that fresh money is needed to finance the faster expansion of renewable energies and LNG terminals, commented Tiemo Wölken, climate policy spokesman for the S&D parliamentary group. “But the EU Commission’s proposal to sell allowances from the European emissions trading reserve for this purpose would damage confidence in this instrument and lead to additional emissions.” For EU companies, this would mean that they would be relieved in the crisis, but would still have to implement their decarbonization plans, he explained.

The plenary vote is still scheduled to take place in October. luk

AFIR adopted in Transportation Committee

Late Monday night, the EU Parliament’s Transport Committee (TRAN) adopted the report on the establishment and expansion of a charging infrastructure (AFIR) with a clear majority of 36 votes in favor and 2 against. As expected, the previously negotiated compromises of the rapporteur Ismail Ertug (S&D) all received broad approval.

They stipulate charging stations every 60 kilometers on major European roads by 2026 and hydrogen refueling stations every 100 kilometers by 2028. Additionally, countries with small EV fleets will be required to add 3 kW of charging capacity per newly registered EV. With larger fleets, the charging capacity to be added decreases for each additional EV. Similar expansion quotas are also planned for plug-in hybrids (Europe.Table reported).

The AFIR is intended to create the framework conditions for climate-neutral transport and ensure that alternative fuels are equally available throughout Europe and accessible to all. Charging must be as easy as refueling, Ertug demands. “With the European Parliament’s proposal, we are improving the coverage and performance of charging stations.” Card payment would become mandatory at all charging stations and more price transparency would be created. In the future, operators of charging stations would have to display the ad hoc price in “price per kWh” before the charging process, explains the SPD transport politician.

Shadow rapporteur Jens Gieseke (EPP) is now calling on the member states to act. They must “finally do their homework”, as they have “so far done far too little” in expanding the charging infrastructure and hydrogen filling stations.

Ertug did not receive a majority for his amendment, which provided for penalties for non-compliance with the mandatory expansion targets for member states and transparency requirements for charging station operators. Gieskeke’s EPP, the Renew Group and the ultra-conservative EKR as well as the right-wing ID voted against. However, Ertug intends to reintroduce the amendment during the vote in plenary in mid-October. luk

Parliament votes on standardized charging cables

Today, the European Parliament will hold a final vote on the introduction of standardized charging cables in the EU. This should lead to more frequent reuse of charging cables for smartphones, tablets and cameras. What sounds like a small measure has a significant impact. Consumers can save up to €250 million a year, according to Commission estimates, by no longer having to buy unnecessary charging cables. Additionally, discarded and unused chargers account for an estimated 11,000 tons of e-waste per year.

On June 7, 2022, the negotiators of the Parliament and the Council had informally agreed on a compromise. After the vote in the Parliament, the Council must also agree.“The uniform charging cable is a great success for climate protection and resource conservation, as it will save up to 1,000 tons of electronic waste per year across Europe,” said Anna Cavazzini (Greens), chair of the Consumer Committee and shadow rapporteur, with regard to the vote. Two years after entry into force, only devices with a USB-C charging socket will then be allowed on the market.

“To ensure that the cable clutter in our technology drawers really does come to an end, the European Parliament has succeeded in making it mandatory for laptops, e-readers and navigation devices to also be equipped with the uniform charging cable,” Cavazzini continued. For laptops, however, there will be a transitional period of 40 months after entry into force. Consumers can then decide whether they want to buy a device with a new charging cable or continue to use their existing charging cable.

Proposal on the right to repair comes in November

On November 30, the Commission plans to launch another law that will also provide financial relief to consumers and reduce resource consumption and emissions: the right to repair. Parliament has been pushing for this for more than a decade, explained Cavazzini, who asked the Commission for a legislative proposal on this in the spring. The goal of the law is for manufacturers to design their products to be durable and repairable by design. It is also about banning the planned aging of products (obsolescence) and making spare parts cheaper and more accessible.

According to a Eurobarometer survey, 79 percent of EU citizens think manufacturers should be required to make it easier to repair digital devices or replace their individual parts. 77 percent would rather repair their devices than replace them. vis

Further details on EU raw materials package revealed

After the Commission launched a public consultation on an EU raw materials law last week, more information has emerged about its plans. The package of measures, which the Commission plans to present early next year, is to be based on four pillars, as Europe.Table learned.

First, criteria for prioritizing particularly critical raw materials are to be developed. The Commission’s previous list from 2020, which will be regularly revised by next year, includes 30 raw materials. This number is now to be reduced on the basis of solid criteria.

The Commission wants to make raw material monitoring more dynamic and establish a network of competent national authorities for this purpose. Experience and expertise from the member states will thus be pooled at European level.

All stages of the European value chain – mining, refining, processing and recycling – are to be strengthened, with a particular focus on the recycling stage. Strategic projects are to be identified to direct private investment in particular into the sector. These could, for example, be proposed by the member states and then jointly selected by the Commission and the network of authorities. Strategic projects in other countries are also an option, he said. Additionally, measures such as strategic stockpiling are also being considered.

The fourth pillar should be to create a level playing field within the EU. A harmonized approach is necessary. Here, too, special attention is being paid to recycling projects at national level. leo

Environment Committee calls for higher EU climate targets

On Monday, MEPs from the EU Parliament’s Environment Committee (ENVI) adopted a resolution outlining their demands for the 2022 World Climate Change Conference in Sharm el Sheikh (COP27). They call for the EU and all G20 countries to show leadership and update their nationally determined contributions (NDCs) to global emission reductions (GHGs) accordingly to close the gap to the 1.5°C target. At the same time, however, MEPs made it clear that they expect the Fit for 55 package to achieve the EU’s 2030 target.

The resolution also highlights the importance of climate finance for successful climate action in less wealthy countries. MEPs call on all industrialized countries to ensure that the target of $100 billion in annual climate finance is met and that the money is disbursed as early as 2022. luk

Ex-Prime Minister Borissov’s party wins Bulgarian election

The conservative GERB party of former Prime Minister Boyko Borissov won Bulgaria’s parliamentary election. After 99 percent of the votes were counted, his center-right party came in with 25.4 percent of the vote, according to data released Monday. The liberal We Continue Change (PP) movement of Kiril Petkov, the head of government ousted in June, came in at 20.2 percent in Sunday’s election, according to the report. Experts believe that coalition negotiations are likely to be difficult.

According to Vessela Tcherneva, head of the Sofia office of the European Council on Foreign Relations, the vote in Bulgaria could produce two types of coalitions: an anti-corruption coalition, in which GERB under Boyko Borissov would find no place, or a geopolitical coalition of the centrist parties, which however would be possible only if Borissov would resign from chair of his party. The third option, a GERB-led “coalition of the back-stage” is also possible, but highly risky for the reputation of the main political force, also an EPP member.

The scenario under which there is no coalition possible would undermine parliamentary democracy in Bulgaria and will further tilt the balance towards the pro-Russian president Radev.

The parliamentary election in EU member Bulgaria was the country’s fourth in less than two years. Petkov’s government had collapsed in June after only six months in office. One of the four parties had left the coalition, and support for a minority government failed to materialize. In 2021, Bulgarians had already been called to vote three times for a parliament. The election campaign was dominated by the Ukraine war and uncertain gas supplies. The EU country has close historical and cultural ties with Russia. rtr/klm

Mammoth task: Luc Rémont will become new head of EDF

A successor for the French state-owned energy group EDF was sought for months. Luc Rémont, from the French electrical engineering group Schneider Electric, has now been proposed as the new boss by the Elysée Palace. He brings international industrial experience and financial knowledge to the table and has already worked in the French Finance and Economy Ministries. He is to replace 67-year-old Jean-Bernard Lévy, in office since 2014, at the helm. Lévy’s mandate expires in March. An exact date for the replacement is not yet known, but it is likely to be sooner than March. It was said that when the successor is found, Lévy will step down.

Economy and Finance Minister Bruno Le Maire had already defined the profile in the summer: “Someone who has a handle on large industrial programs.” The person should also have a “sense of compromise” to reform the utility while not angering unions and the EU Commission. Rémont, like his predecessor, is initially expected to combine the two posts, that of president and that of general manager. However, it is not impossible that the offices will be split again. The 53-year-old Rémont, who is little known to the public, was the government’s favorite from the start.

Christel Heydemann, who has been general manager of Orange for several months, worked with Rémont for a long time at Schneider Electric. She sees him as a suitable candidate. “He has many qualities. A great knowledge of the Bercy Ministry of Economy and Finance, experience as a banker, and at Schneider he dealt with energy transition,” she told Le Monde. Additionally, she said, he is internationally experienced. She even goes so far as to say, “I’m a big fan”.

An almost impossible task

Rémont faces the colossal task of getting the ailing utility back on track. Nearly half of the 56 nuclear reactors are idle for maintenance or have corrosion problems. The goal is to have as many power plants running again as possible before winter. EDF’s program is very optimistic and there have already been delays for several weeks, adding uncertainty to the energy crisis across Europe. The magazine “L’Express” sees it as a “Herculean task”, and the daily newspaper “Le Parisien” wrote of Rémont: He “stands at the foot of a mountain.”

Rémont will have to prove his diverse experience in the public and private sectors. He had been at Schneider Electric since 2014, initially in charge of its French operations. Rémont attended the elite Polytechnique College of Engineers and then began his career at the Ministry of Defense before moving to the Ministry of Economy and Finance. He spent seven years at investment bank Merrill Lynch, including as head of its French branch, which is an advantage given EDF’s financial problems. The utility has €43 billion in debt, due in part to government measures to cap electricity tariffs.

He also worked in the cabinet under Nicolas Sarkozy and Thierry Breton, the current EU commissioner for the internal market, when they were finance and economy ministers. This means Rémont also has a confidant in the EU, which could prove useful in future negotiations on nuclear power. “Luc Rémont knows exactly how public decisions are made, which is very useful for an EDF chief,” said a former adviser to Sarkozy. And he is “very loyal”.

He will need loyalty to the government. The state, which holds 84 percent of EDF, wants to take over the utility outright. Negotiations have recently been fraught with tension with EDF’s leadership, especially with its chief executive Lévy, who was still appointed by former Socialist President François Hollande. There is also a need to move forward with the program of new high-pressure reactors EPR announced by President Emmanuel Macron. The first two are to be built at Penly in northern France. All together, it almost seems like an impossible task. Tanja Kuchenbecker