This tribune was originally published by Environment Magazine and is co-authored by Eric Scotto , President of Akuo Energy, Carlos Martin Rivals, CEO of BlueFloat Energy , and Olivier Perot , Industrial Advisor at Sumitomo Corporation and Board Member of EEF SAS – Energie Eolienne France. The three companies are members of the EOLYMAR consortium formed in response to the French tender to develop two floating offshore wind projects off the Mediterranean sea (AO6) of 250 MW each.
For the authors, France’s reindustrialization and the decarbonization of its economy are closely linked to the establishment of a strategy for a stable and competitive supply of green electricity produced within the French national territory.
In May 2023, in a report commissioned by the government on industrial electricity supply conditions, Philippe Darmayan pointed to the concerns of industrialists regarding the end of the Arenh in 2025. This mechanism, which allows French industrialists to benefit from regulated access to energy produced by a nuclear facility, contributes to the competitiveness of our industry. The government recently made public the latest estimates by the Commission de Régulation de l’Énergie of the historical costs of nuclear energy production, which is based on significantly higher assessments. A disagreement is currently ongoing between EDF, which seeks a high price after 2025, and the government, which aims to maintain an attractive price for the industry. Faced with this dilemma, it is time to give renewable energies, and offshore wind in particular, their rightful place in the country’s reindustrialization strategy.
Renewable energies at the heart of France’s reindustrialization challenges
Macro factories for the production of solar panels, gigafactories for electric batteries, massive projects for decarbonized hydrogen production… the new green economy is a real opportunity for the reindustrialization of France. But these industries are energy-intensive: having stable and competitive electricity is crucial to launch these investments.
This need arises in the context of the decarbonization of the French economy, which will lead to a sharp increase in electricity consumption by 2030-35. France’s reindustrialization and the decarbonization of its economy are closely linked to the establishment of a strategy for a stable and competitive supply of green electricity produced within the French national territory. By 2035, offshore wind power will be a major contributor to decarbonized electricity production, with a projected capacity of 18 GW in service.
Tender calls for the construction of offshore wind farms put bidding consortia in competition to build and operate sites selected by the state. The submitted electricity price, a predominant criterion, defines a fixed remuneration for 20 years, with the State compensating the difference between the market price of electricity and the submitted price. Currently, the tender rules do not allow the winner to directly supply a specific industrial site, as the electricity produced is delivered indiscriminately to EDF.
Promoting short supply chains “From the Sea to the Factory”
The Gulf of Lion offers the best wind conditions in the entire Mediterranean, comparable to the best sites in the North Sea. Floating offshore wind, a promising and maturing technology, is adapted to its characteristics. France quickly became interested in this resource and took the lead in this industry, with the ongoing deployment of three pilot farms in the Mediterranean, the launch of a Call for Tenders (AO6) for two commercial projects of 250 MW each, which will quickly be expanded to 750 MW, and plans for a total floating capacity by 2050 around 7.5 GW.
At the same time, the industrial-aero-port complex of Fos-Marignane-Marseille focuses on major issues of reindustrialization and decarbonization: a giant factory for the production of solar panels (the Carbon project for 2025), the development of several large projects for the production of green hydrogen to decarbonize the regional industry (steel, cement, chemistry), or for the synthesis of e-fuels for air and maritime transport. However, these energy-intensive projects are hindered by the lack of visibility on their competitive supply of decarbonized electricity.
Floating offshore wind can boost the decarbonization and reindustrialization of the Mediterranean coastline. To do this, floating wind farms in the Gulf of Lion should be allowed to directly allocate a substantial portion of their electricity production to these new factories, for example, 20%, at the conditions of the tender, i.e., at a stable and competitive ceiling price for at least 20 years.
For the Sud PACA and Occitanie regions, this “short circuit” between the production and consumption of renewable energy would accelerate and secure massive industrial investments and high-value-added jobs in the regional green economy, while promoting the involvement of local populations and communities in offshore wind projects.
This possibility, simple to implement, could be included in the next PPE (Pluriannual Energy Programming).
Published on October 10, 2023 on Environnement Magazine FR.
To read this article in French, please click here: Tribune | « La réindustrialisation de la France peut être accélérée par le déploiement massif des ENR »
