France finally ready to unleash its full potential? – The Express

Located in the Amblève valley between Liège and the Luxembourg border, it is just as capable of mobilizing its turbines in a matter of seconds to compensate for windy conditions as it is of reenergizing the national system in the event of a blackout – scenario which would certainly require a few extra minutes. The story is not exceptional: these situations are more and more frequent with the increase in the share of intermittent renewable energies, and go unnoticed by citizens. Basically, outside of the industry, no one cares whether the electricity needed to turn on a switch or an oven is provided by wind or water. The anecdote nevertheless illustrates the key role of this energy source for the balance and flexibility of the electricity network, in Belgium as in France.

For once in this area, all the players seem on the same wavelength, aware of the essential link represented by “hydro”, the leading source of French renewable electricity (around 11% of national production, 25, 7 GW of installed capacity). Everyone also agrees on its potential: the industry constantly repeats that part of the deposit remains unexploited. The government confirmed in the “energy” section of its new energy-climate strategy for 2050, presented on November 22, the desire “to increase installed capacities by 2.8 GW for 2035”. On this objective, “we are in phase with the State”, assures Jean-Charles Galland, president of the hydroelectricity commission of the renewable energies union (SER). But specialists deplore a general paralysis for fifteen years due to a dispute between Paris and Brussels: the issue of hydroelectric concessions.

After two formal notices from the European Commission (2015, 2019) for not having opened to competition the operating concession for around forty expired dams (out of 340 structures), France, which had opted for a wait-and-see attitude – no opening to competition but no new investments in these infrastructures – is working to resolve the problem with EDF, which operates a very large majority of the sites. One option stands out: a transfer of dam properties to current operators in order to replace the current regime with an authorization system. All against an amount to be determined, a priori by an independent expert, to prevent the entire operation from being perceived by Brussels as state aid. Buried, therefore, is the long-studied approach of quasi-management. EDF’s competitors, who might have wanted to position themselves on expired dams, are following the matter closely, but without being in the secret of all the discussions. “We hope for a fair solution in terms of competition and consistent with European law,” said one of them.

The Ministry of Energy Transition has submitted its plan to the Commission. This confirms that it is in contact “with the French authorities to collect all relevant information on the planned design of the measure”. Now waiting, Agnès Pannier-Runacher’s office would like to complete the file in the coming weeks. “The idea is to include very quickly, ideally in the energy programming law which would be presented at the beginning of next year, these provisions to bring legal certainty to the situation of dams and relaunch the sector,” indicates he told L’Express.

A favorable outcome would relieve the entire sector and allow the hydroelectric park to “fully play its role in the energy transition”, as emphasized the Court of Auditors last February. Investments could then be relaunched, particularly those aimed at increasing or optimizing existing developments, including pumped energy transfer stations (Step), a proven electricity storage solution. In Belgium, far from French legal hassles, Engie was able to complete the expansion work on its Step de Coo in September: the storage volume increased by 7.5%. The group injected 67 million to raise the dikes of one of the upper basins by two meters, from which the water is turbined during peaks in demand, and to increase the volume of the lower basin, from where the water is pumped towards upstream deductions when electricity is abundantly available on the network. “We are also going to change the turbine, the blades and the transformers of three units to increase their power,” explains Marc Locht, the plant’s operations manager, from the noisy “cavern”. Running at full power, the equivalent of an Olympic swimming pool rushes down the one kilometer pipe connected to the reservoirs every five seconds and passes through this engine room cut into the hill. The electricity production (1.08 GW) then corresponds to that of a nuclear unit or a park of 360 wind turbines (3 MW) for six hours.

“The Steps are the holy grail… once built,” muses Sébastien Arbola. They are controllable, very responsive and operate in a closed circuit. But controlling the costs of these major civil engineering projects, many of which were carried out decades ago, is now much more uncertain. “The sector is extremely capital-intensive and market signals are currently insufficient,” confirms Jean-Charles Galland, of the SER. The environmental impact and acceptability also dampen enthusiasm. Around a hundred NGOs recently called on the European Commission to demand an end to funding for any new hydroelectric projects on the continent. So many reasons why Engie, which explored projects in Europe and outside, did not move forward. The group therefore prefers to over-equip its assets, such as the two Steps it owns in Wales. Same strategy adopted by EDF. The energy company, which operates the six pumped-storage stations in France, has a Step project in Montézic, in Aveyron, in the works, where it wishes to build “a new 460 MW power plant adjoining the already existing one “. More broadly, EDF “has the capacity to increase the installed power of its existing fleet by 2,000 MW within 10 years, and by at least an additional 2,000 MW after 2035, i.e. an increase of 20% in the power of its fleet hydraulic”, indicates the group to L’Express.

Behind these behemoths of an already discreet sector, hide more modest players… and therefore even less visible. They carry out small hydroelectricity projects whose potential, both on “greenfield sites” – that is to say new installations – and for renovations of existing power stations, is recognized by the public authorities. But they believe that the prospects for development, although encouraged by the executive, are penalized by the inconsistency of certain political decisions. In particular, for the time being envisaged, not to recognize hydroelectric power plants of less than 3 MW as being of major public interest. “However, they are fundamental on a local scale,” defends Xavier Casiot, president of France Hydro Électriqué. The margins on our system will be reduced with the electrification of uses. We often talk about “the thickness of the line”: tomorrow, small hydroelectricity projects will count so as not to get into difficulty, to contribute to flexibility. Every kilowatt hour is important.”

Jean-Charles Galland deplores “a dated regulatory approach, which no longer corresponds to today’s paradigm. And even if things are moving, it’s slow”. For example, he mentions the winners of calls for tenders for small dams in 2017, now overwhelmed by inflation and increased construction costs. “They cannot develop”, due to lack of sufficient aid, he regrets. If the future of “hydro” is essential for the balance of the electricity system, several pitfalls persist, for both large and small. The powers of water are not (yet) totally released.