TotalEnergies finds France lagging in renewable investment attractiveness

TotalEnergies, one of the world’s leading energy companies, has raised concerns about France’s competitiveness in attracting renewable energy investments compared to other countries. Isabelle Patrier, the director of TotalEnergies France, highlighted the sluggish project approvals and the requirement for wind power to be sold to the government rather than directly to customers as key factors contributing to France’s diminished appeal.

Speaking ahead of the inauguration of a 63-megawatt wind farm in northeast France, Patrier pointed out that other countries are progressing much faster in renewable electricity production, whether it’s offshore wind, onshore wind, or solar power. “There are countries in which you go much faster in renewable electricity production than you do in France,” she stated.

France has ambitious goals for offshore wind power, aiming to have 45 gigawatts (GW) of offshore wind in operation by 2050 to achieve carbon neutrality. However, the country’s progress has been relatively slow, with only two offshore wind farms totalling 0.97 GW currently fully operational, and bidding processes lasting an average of 2.5 to 3 years.

Patrier highlighted the challenges faced by France in achieving its renewable energy targets, citing the example of the 2019-2023 energy planning law, which called for 3.7 gigawatts of wind tenders but failed to meet that objective. “There’s a challenge regarding deployment speed — and for us, our objectives have to be achieved,” she emphasised.

One of the key factors contributing to France’s comparative disadvantage is the inability of renewable energy producers to sell electricity directly to customers. In contrast, countries like Germany, the United Kingdom, the United States, and parts of Asia allow for direct sales of renewable electricity to clients through power purchase agreements (PPAs). “That’s the key aspect in wind in places we are present like Scotland, Britain, offshore New York in the U.S. where we’ve won large contracts, and in Asia,” Patrier noted.

Despite the challenges, TotalEnergies remains committed to France as a key market. The company is France’s third-largest green electricity provider, with 2 GW of installed renewable capacity out of its global total of 23 GW. However, the company acknowledges the need to invest in offshore wind projects in regions where it can produce electricity rapidly to supply its customers.

TotalEnergies aims to triple its renewable electricity production to exceed 100 terawatt-hours globally by 2030, underscoring the importance of a favourable investment climate and streamlined approval processes for renewable energy projects.

As the global energy transition accelerates, France faces the challenge of enhancing its competitiveness in attracting renewable investments to meet its ambitious climate goals and ensure a sustainable energy future.

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