The Energy Regulation and Markets Review - Stikeman Elliott

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Market developments
France
Market developments have taken place in different areas, and in particular on the cost of
electricity with the Law NOME. Moreover, the renewal of hydraulic concessions have
recently been launched. 36 Finally, various reports were submitted at the beginning of
2012, aimed at clarifying what should be the investments to ensure the security of supply.
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Renewable energy and conservation
i
Development of renewable energy
In July 2007, the French government launched the Grenelle Environment Forum, a
major national consultation that led to the emergence of priority targets in terms of
controlling energy consumption and promoting renewable energies. This forum led to
the enactment of two ‘Grenelle Laws’, respectively on 3 August 2009 (‘Grenelle I’) and
12 July 2010 (Grenelle II), 37 aiming at promoting environmental objectives such as,
the increase of the share of renewable energy to at least 23 per cent of final energy
consumption before 2020, in accordance with European Union Directive 2009/28/
EC. 38 These laws were codified in a separate section dedicated to renewable energy in
the Energy Code. 39
To enhance the development of renewable energies, public authorities can use
two economic instruments. 40 First, feed-in tariffs require the historical operator to buy
energy produced from renewable sources, for a regulated tariff over a long period, which
can be changed and is slightly higher than the market price. Second, calls for tender
can be used to determine ex ante the quantity of renewable energies benefiting from the
public support.
ii Energy efficiency and conservation
In order to achieve a 20 per cent increase in energy efficiency, in accordance with the
climate and energy package, 41 on 22 June 2011 the European Commission presented a
36 www.developpement-durable.gouv.fr/Les-concessions-hydroelectriques.html.
37 Law No. 2009-967 of 3 August 2009 relating to the implementation of the Grenelle
Environment Forum and Law No. 2010-788 of 12 July 2010 relating to national commitment
for environment.
38 Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on
the promotion of the use of energy from renewable sources and amending and subsequently
repealing Directives 2001/77/EC and 2003/30/EC.
39 Articles L211-1 to L261-1 of the French Energy Code.
40 www.cre.fr/operateurs/producteurs/appels-d-offres.
41 The climate and energy package was presented by the European Commission on January
2008. It suggested to implement the ‘20-20-20 targets’: (1) A reduction in EU greenhouse gas
emissions of at least 20 per cent below 1990 levels, (2) 20 per cent of EU energy consumption
to come from renewable resources, and (3) a 20 per cent reduction in primary energy use
compared with projected levels, to be achieved by improving energy efficiency.
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