France Power Market Outlook to 2030, Update 2017 - Market Trends, Regulations, and Competitive Landscape
France has a developed market-based economy, in which both the private and public sectors have a strong role. Power generation, public transport, and defense are dominated by government-owned companies, while some sectors, such as aviation and telecom, are led by private players. The country derives a major share of its income from tourism, and ranks third, worldwide, in terms of revenue from tourism. Although it has a capitalist economy, the government tries to maintain social parity through laws, tax policies, and social spending aimed at reducing income inequality and the side effects of a free-market economy.
France’s power sector outlook remains stable, with no drastic structural change set to emerge in the future. The current discernible trend suggests gradual growth in the share of renewable power and a corresponding decline in the share of nuclear power. The power mix is dominated by nuclear power, of which the installed capacity in 2016 accounted for 48.1% of cumulative capacity. Hydropower accounted for a 19.4% share; followed by thermal power, comprising gas and oil, with 16.6%; and non-hydro renewable power, comprising wind, solar photovoltaic (PV), biopower, and geothermal, with 15.8%. Onshore wind accounted for 8.9% of installed capacity in 2016.
Renewables are the fastest-growing energy source in France, accounting for 0.5% of the power mix in 2000 and rising to 15.8% in 2016, at a Compound Annual Growth Rate (CAGR) of 24.8%. GlobalData expects the growth rate to be considerably slower between 2016 and 2030, at 9.3%. Nevertheless, the share is expected to increase to slightly more than 40% during this period. Correspondingly, the share of nuclear power is expected to fall to 35.3%, supported by the government’s current emphasis on reducing its share, alongside that of thermal power, which will also decline drastically in the future. Thermal capacity, which amounted to 22.6 gigawatts (GW) in 2015, declined to 21.8 GW in 2016.
France has well-developed wind, solar, and biomass markets, in comparison with other European countries, and substantial investment in renewable technology is expected to characterize the power sector due to the government’s intention to increase its renewable installed capacity. On the other hand, policy uncertainty has led to slow growth, which was not aided by the presence of a strong pro-nuclear lobby. The promulgation of the Energy Transition for Green Growth Act, in August 2015, and the confirmation by the new French environment minister in May 2017 that the policy will be adhered to, is expected to further promote the growth of renewable energy sources in France in the forecast period.
The report France Power Market Outlook to 2030, Update 2017 - Market Trends, Regulations, and Competitive Landscape France's power market structure and provides historical and forecast numbers for capacity, generation, and consumption up to 2030.
In particular, this report provides the following -