THE DRAFT FRENCH ENERGY LAW AND WHITE CERTIFICATES SYSTEM Robert ANGIOLETTI Head of MS2E Department September, 21 st 2004

21/09/ THE DRAFT FRENCH ENERGY LAW 2 THE DRAFT FRENCH ENERGY LAW (1) Energy efficiency target  Improve energy intensity: - 2 % per year, until 2015 CO2 reduction target  Reduce CO2 emissions : - 2,5 % per year, until 2030 Renewables targets :  Increase electricity (>21 %) and thermals (+ 50 %) renewable contribution until 2010

21/09/ THE DRAFT FRENCH ENERGY LAW 3 THE DRAFT FRENCH ENERGY LAW (2) White certificates Ambitious implementation of the directive on EE of buildings Planning permission linked to integration of renewables Communication (Tax on advertising)

21/09/ THE DRAFT FRENCH ENERGY LAW 4 WHITE CERTIFICATES : MAIN RULES (1) Energy suppliers have to meet a target of energy savings (or pay a penalty) They can implement actions or buy certificates Over a threshold of savings, “eligible” bodies (companies, communities…) can made savings and get certificates Energy savings must be “additional”

21/09/ THE DRAFT FRENCH ENERGY LAW 5 WHITE CERTIFICATES : MAIN RULES (2) Obligations for electricity, gas, LPG, heat, cold and heating fuel suppliers The savings can be made everywhere (except plants under CO2 quota directive) => Whatever the sector, the supplier, the energy source… WC added value when renewables are used and within some geographic (specific) zones

21/09/ THE DRAFT FRENCH ENERGY LAW 6 WHITE CERTIFICATES : MAIN RULES (3) Target53 TWh For the first three years Suppliers obliged : sells over 40 TWh/year Transaction costs can be reported in case of regulated tariffs, at least partly Expected cost : 20 €/MWh (penalty = 2 c€/kWh)

21/09/ THE DRAFT FRENCH ENERGY LAW 7 ADVANTAGES OF THE SYSTEM (1) Reach numerous and scattered small consumers through the existing commercial activity of energy suppliers =>Effective and cheap A market based system that should drive down costs

21/09/ THE DRAFT FRENCH ENERGY LAW 8 ADVANTAGES OF THE SYSTEM (2) Possible reduced administrative costs A wide range of companies can be part of the system (craftsmen, retailers and producers of energy efficient products, municipalities, ESCOs…) => New activities and markets A step towards energy efficiency services

21/09/ THE DRAFT FRENCH ENERGY LAW 9 QUESTIONS STILL OPENED Calculation of “additional value” of certificates Introducing quality for products and schemes (i.e. : bonus for audits…) Simple and affordable control system And last but not least : Will a real market exit ?

21/09/ THE DRAFT FRENCH ENERGY LAW 10 ADEME’s ROLE Set methodologies for saving calculation and WC allocation Propose assessment tools Contribute to general information towards « eligible » bodies Contribute to WC projects elaboration and improvement, Contribute to assessment and best practice dissemination