Flexible French FITs: Higher Biogas, Lower PV Tariffs Coming

Paul Gipe, Contributor
March 03, 2011 | 13 Comments

In late February, the French government proposed to substantially raise feed-in tariffs for biogas, while dropping tariffs for solar photovoltaics (PV) by an equivalent amount.

Nathalie Kosciusko-Morizet, France's Minister for Ecology, Sustainability, and Transport, made the announcement in a release dated February 24, 2011.

The proposal raises biogas tariffs 20% to be more inline with those in neighboring Germany, by including incentive payments for the use of wastes from livestock operations. The Ministry's proposal also includes a new tariff for biogas injected into the natural gas distribution system.

More controversial are the Ministry's revision of solar PV tariffs and a new target for the French solar industry of 500 MW per year. The Ministry is proposing cuts of 20% across the board and new regulations to rein in the growth of solar in France.

The new policy will go into effect after formal publication on March 9th, following a consultation with the Council for Energy.

2010 French Solar Rivals USA

The Ministry also reports the installation of 720 MW of solar PV in continental France (France Metropolitaine) and its overseas territories in 2010, bringing total installed capacity to more than 1,000 MW for the first time.

There are now 152,000 solar PV installations in France and its territories.

French 2010 installations were more than double those of 2009 and rival the approximately 800 MW of solar PV installed in the USA during the same period.

France now has the seventh-largest installed solar PV capacity in the world, after Germany, Spain, Japan, Italy, the USA, and the Czech Republic.

The Ministry expects from 1,000 MW to 1,500 MW of new solar PV will be installed in 2011 and 2012. If development proceeds as expected, France's total installed capacity will rival that of the USA. France has one-fifth the population of the USA.

Though the government didn't release the number of central-station, ground-mounted projects, the vast majority of French solar installations are in distributed applications. There were 13,000 projects greater than 3 kW, representing 70% of total capacity installed in 2010. Only 92 projects installed in 2010 were greater than 250 kW, for a total of 128 MW.

Several ground-mounted projects in the pipeline will be installed in the next several months, and some of the projects that were under development before the government's moratorium will proceed under the previous policy.

Wind Nears 2% of Supply

French installations of new wind-generating capacity in 2010 remained steady at 1,100 MW, bringing total installed wind capacity in France to 5,700 MW.

In 2010, French wind turbines generated 9.4 TWh or 1.8% of supply, up from 1.5% in 2009. The current fleet is capable of generating more than 11 TWh in 2011. This will push French wind penetration above 2% for the first time.

There are 3,700 MW of wind capacity and 4,100 MW of solar PV capacity in the transmission queue waiting for connection.

New PV Target, New Tariffs, New Regulations

Ostensibly as a means to limit costs to ratepayers, the Ministry has set a new target, 500 MW per year, for the installation of solar PV, and adopted the regulations to limit growth to that desired.

For comparison, Germany, one of France's main trading partners, has recently reaffirmed its target of 3,500 MW per year.

The French Ministry's proposal cuts solar PV tariffs 20% and will severely limit new applications for any rooftop project greater than 100 kW and all ground-mounted projects.

To restrict the type and number of installations, all rooftop projects greater than 100 kW but less than 250 kW will have to respond to a "simplified" Request for Proposal (RFP) or "call for tender" as it is known in Europe. Winners of the RFP will be chosen on several non-price factors and will receive the fixed tariffs.

However, all rooftop projects greater than 250 kW, and ground-mounted projects of any size will have to respond to a more conventional RFP. Winners will be based on price, environmental impact, innovation, and other factors. Thus, solar PV projects greater than 250 kW will be effectively removed from the French feed-in tariff program.

The use RFPs reflect the famed French penchant for centralized control and administration, preferred by French governments since Louis XIV (the "Sun King") concentrated power in the hands of the Versailles nobility.

The new proposal gives the Ministry all decision-making authority regarding who will and will not install solar PV greater than 250 kW. Critics suggest that this is not only a way to rein in the rapid growth of solar but also a recipe for favoring preferred contractors.

As recently as early 2010, the Ministry raised tariffs for solar PV, as well as for geothermal, and biomass. At the time, solar advocates warned the French government--to no avail--that they were in danger of overheating the French solar PV market at the expense of the entire renewable energy program. See 2010 French Tariffs Raise Price for Solar, Geothermal, and Biomass.

Overcost Due to Fossil Fuels, Not Renewables

With the rapid growth of solar PV in France have come charges that renewables have created a huge debt in un-funded utility charges.

France collects a public goods charge, the Contribution au Service Public de l'Électricité (CSPE), from electricity consumers in order to pay for renewable energy, fossil-fired combined heat and power, and for the bills of consumers who can't pay them themselves.

In an unusual twist on the concept of public goods charge, the CSPE also pays the overcost that can't be recovered in rates of generating electricity from fossil fuels in French overseas territories. Consumers in French overseas territories pay the same electricity rates as Parisians, even though the cost of generating electricity is far higher than in continental France.

Electricité de France (EDF), the partially privatized utility serving France and its territories, has for several years not been collecting sufficient funds to cover the cost of the CSPE.

From 2007 through 2010, EDF had run up a debt of 2.8 billion euros. The cost of renewables represents only 10%-15% of the total unfunded debt. The cost of fossil fuels accounted for 70% to nearly 90% of the debt, says the Comité de Liaison Energie Renouvelables (CLER). This is the same time period when oil prices reached their zenith, before crashing along with the global economy.

The situation with the CSPE in France is not dissimilar to that in Spain, where the overcosts of fossil-fuel fired generation during the run-up in oil prices in 2007 and 2008 were attributed to the costs of renewable energy.

Critics note that despite wind energy's steady growth of 1,000 MW per year, it is insufficient to meet France's renewable energy targets. The new limits on solar PV, one-seventh the annual target of Germany, will only exacerbate the problem.

Nevertheless, the French government's action illustrates the flexibility of feed-in tariffs as a policy tool by raising the tariffs for the technologies they want, while lowering those of the technologies they fear.

This feed-in tariff news update is partially supported by An Environmental Trust and David Blittersdorf in cooperation with the Institute for Local Self-Reliance. The views expressed are those of Paul Gipe and are not necessarily those of the sponsors.

13 Comments

Mary Saunders
March 30, 2011

The composting process can produce useable heat, with pex run through it, in addition to producing compost. By doing this in enclosed areas such as greenhouses, food can be grown using the heat and gases generated. Adding animals to the mix is complicated but possible.

The book Solviva discussed a closed-loop set-up in Massachusets that involved growing high-value salad greens delivered ready to serve to fancy restaurants. PVC was used to grow stacked layers of greens in a greenhouse. PVC would likely not be used now.

In British Columbia, high-value colored peppers have been grown in huge greenhouses in the flats near Vancouver, B.C.

What makes sense to me is generating heat and other yields close together with stacked functions. Stacking functions is a permaculture term that I like. It encourages adding value and considering waste to be valuable for other parts in closed loops.

DANIEL MARTIN-RIOS
March 30, 2011

France should invest more into WIND ,SOLAR and BIOFUELS
It would pay off as we see prices of fossil fuels higher and higher

Warren Reynolds
March 10, 2011

CLA: I have read all the peer reviewed science involved and they do not look beyond the first year of CO2 uptake. Sure, after 70.1 years all the CO2 would be taken up by the plants and oceans. But in the interveaning time of 69.1 years the CO2 creates global warming. I know since I have argued this point with some of the peer eviewed authors who are not chemical engineers. They are beginning to understand. It is the immediate reduction of CO2 that is important.
Dr. Reynolds

Oliver Harwood
March 10, 2011

Sorry Dr Reynolds, but you still miss the point.

Before biogas from an AD plant can be produced it needs feedstock.

It is the production of the feedstock that sucks in CO2.

So in mass balance terms (and accepting you must allow for losses) the amount of CO2 emitted cannot be more than the feedstock acquired when it was growing.

This is well proven in peer reviewed science and I thus decline to take this debate any further.

Thank you for your thoughts.

Warren Reynolds
March 9, 2011

CLA: You still do not understand the carbon dioxide issue. The plants and the ocean DO NOT take up 100% of the newly generated CO2. That leaves a surplus in the atmosphere for 65 years that increases the global warming. Add to that the CO2 generated from the autos (CO to CO2 atmospheric reaction) and what do you get ? An increase in atmospheric CO2.

The goal is to REDUCE the CO2 in the atmosphere If no new CO2 were generated today, then it would take 70 years to get back to the level of CO2 we had today from all the previously excess CO2! Go learn some chemistry.

Dr. Reynolds

Oliver Harwood
March 9, 2011

Dr Reynolds has great maths but misses the chicken/egg point,which is that before you put any biomass into AD you first have to grow it, during which process it will take in the CO2 that is emitted when its consituent carbon is released to the atmosphere. There are certainly some losses along the way, but these are more than made up for by avoiding the large GHG emissions that would otherwise arise from the same biomass breaking down in uncontrolled atmospheric conditions.
AD is the best carbon option for waste biomass. (Carbon balances and energy impacts of the management of UK wastes, Defra R&D project WRT 237 Final Report, ERM, December 2006). See http://randd.defra.gov.uk/Document.aspx?Document=WR0602_4743_EXE.pdf)
I hope this helps

Warren Reynolds
March 8, 2011

Michaelcamada: Yes, there are many uses for methane. Chemically, it can be converted through a new catatlytic process to methanol that can be used for drug manufacture and other chemical uses. It can also be reacted to form a "green" solvent such as dimethyl carbonate.

Carbon dioxide has a "half life" in the atmosphere of 10.1 years which means that half of the CO2 dumped into the atmosphere is used in 10.1 years by plants and dissolved in the ocean. Due to the higher CO2 in the ocean, the pH of the ocean is dropping and dissolving the coral. It takes 7 "half-lives" or 70.1 years for 97% of the original CO2 to be removed from the atmosphere. Methane has an even higher greenhouse gas effect on the atmosphere more than that of CO2.
Dr. Reynolds

Michael Liu
March 8, 2011

Bravo to the new FiT policy of France. With a 20% increase for biogas facilities, it will witness a boost of French' waste to energy projects, especially methanization plants. In this regard, France has been lagging behind compared to its neighbouring countries, like UK, let alone Germany.

As for the argument between Dr.Reynold, and Mr.Anonymous, both are right in pointing out two approach to deal with wastes and methane created. Thanks to Dr.Reynold, I have learned a new method for waste disposal. But in comparison to methanization, it cannot provide electricity, heat, compost as end products, which are necessities to households and industries. And burning methane produces CO2, but it is far better and favorable to use it as fuel for gas engine to generate electricity, than use fossil fuels.

Warren Reynolds
March 5, 2011

Mr. Anonymous: Ignorance is bliss ! There are commercially available soil tower units containing anaerobic bacteria that some manure and agro wastes companies are using. The process consists of piping the biogas into the soil units that decompose methane, and other biogases for the bacteria food supply. Only oxygen and nitrogen are released to the atmosphere.
Dr. Reynolds, CEO
Eco-Engineers Corp.

a b
March 4, 2011

anonymous, you probably bought your PhD from another troll. Biogas is derived from biomass like manure or agro wastes that has been rotting in closed containers, instead of left to rot in open air. If left to rot in open air, you also get methane without providing electricity, natural gas, heat and compost as end products. Yes I know, the French imports most of their natural gas from Algeria and Qatar. Algeria is a neighbor of Tunesia and Libya. And Qatar is neighboring Bahrein and Iran.

Daniel Simon
March 4, 2011

Reducing FIT by 20% seems reasonable considering what neighboring countries are doing...I'll be anxious to see what the final rate is.

After a 20% cut France's solar FIT will still be higher than Germany...could mean a whole lot of solar going into France in the second half of the year....even if it goes in 100kw at a time. 500MW goal? lol, expect twice that.

ANONYMOUS
March 4, 2011

The French are not thinking correctly. Biogas ? What nonsense! When burned it still generates carbon dioxide. The atmospheric "half-life" for carbon dioxide is 10.2 years. This means that half of the newly generated carbon dioxide is taken up by plants, ocean, etc. It takees 7 half-lives or 71.4 years to rid the atmosphere of the generated carbon dioxde.

Dr. Reynolds

a b
March 4, 2011

It is better to provide higher biogas Fit's for locally engineered and built biogas digester plants that allows struggling farmers to raise their income levels by turning their manure lakes and agro wastes into electricity, heat, natural gas and compost, than to allow high Fit rates to be spent on large ground PV installation built by rich conglomerates using imported PV panels made in China.
The French do it their way as always, but the bottom line is that their farmers and that homeowners will still have access to profitable Fit rates for small scale renewable energy plant investments, while the big PV panels plants built by industrial players will be stopped. In other words, the carbon tax paid by all homeowners will be redistributed to homeowners and farmers, instead of going into the pockets of conglomerates. And it should be that way. Let bankers fund large scale ground based PV panels, they have the teams to calculate the profits made without Fit incomes.

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Paul Gipe

Paul Gipe has written extensively about renewable energy for both the popular and trade press. He has also lectured widely on wind energy and how to minimize its impact on the environment and the communities of which it is a part. For his...