PARIS (Reuters) – “Massive” investments are necessary to enable France to accelerate its electrification with a view to achieving carbon neutrality in 2050 but the increase in the costs of the electricity system should be “contained” over the next few years years, according to a forecast report for the period 2023-2035 published Wednesday by RTE.
In this document, the operator of French high voltage lines indicates that an annual renewable electricity production of at least 270 terawatt hours (TWh) and if possible 320 TWh will be necessary by 2035 (compared to around 120 TWh today). today) and that it will be necessary to aim for nuclear production of 400 TWh, while counting on a level of 360 TWh (compared to 279 TWh in 2022).
“Just for the production of electricity and flexibilities, excluding networks, the investment need is estimated between 25 to 35 billion euros per year by 2030-2035, which represents around a tripling compared to the last ten years”, according to RTE.
Believing that “strong public supervision appears essential to reassure operators in the face of risks and reduce their financing costs”, the electricity transmission network manager adds that “the full cost of electricity production in France is evaluated in moderate increase compared to the latest estimates, but remains contained despite the growth in investments.
The publication of these projections comes after that, on Tuesday, of a report from the Energy Regulatory Commission (CRE) according to which the complete cost of the French nuclear fleet comes to 60.7 euros per MWh (megawatt hour) for the period 2026-2030.
As part of the current Arenh system (regulated access to historic nuclear electricity), which will expire at the end of 2025 and which the government is seeking to replace with new regulation, EDF cedes part of its electricity to its competitors. a significantly lower price, 42 euros/MWh.
EFFICIENCY AND ENERGY SOBRIEF, THE OTHER PILLARS
RTE confirmed on Wednesday that French electricity consumption should be between 580 and 640 terawatt hours (TWh) in 2035, compared to 459 TWh in 2022, and that the country’s security of electricity supply would strengthen over the next few years. years.
The balance of the system by 2035 will also be based on energy efficiency measures, for 75 to 100 TWh of annual savings, as well as on “sobriety” measures, amounting to 25 to 60 TWh.
While a reform of the European electricity market is currently being discussed, RTE believes that “to succeed in the decarbonization of its economy, France must remain integrated into the European market, but accompany it with a framework allowing consumers to benefit from the competitiveness of production costs.
“The publication by RTE of its forecast assessment of the electricity system for 2035 confirms the relevance of our energy strategy and the four levers on which it is based: sobriety, energy efficiency, renewable energies and the revival of nuclear power”, reacted the Minister of Energy Transition, Agnès Pannier-Runacher.
(Reporting by Benjamin Mallet; edited by Blandine Hénault)
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