{"id":2168,"date":"2022-11-23T10:20:33","date_gmt":"2022-11-23T09:20:33","guid":{"rendered":"https:\/\/enpc.ergeais.com\/?p=2168"},"modified":"2025-07-29T15:33:31","modified_gmt":"2025-07-29T13:33:31","slug":"how-can-france-speed-up-its-energy-transition","status":"publish","type":"post","link":"https:\/\/ingenius.ecoledesponts.fr\/en\/articles\/how-can-france-speed-up-its-energy-transition\/","title":{"rendered":"How can France speed up its energy transition?"},"content":{"rendered":"\n\n\n
\"\"
\u00a9 Pixabay<\/figcaption><\/figure>\n\n\n\n

The need to drastically reduce global greenhouse gas emissions has led many countries to embark on a major energy transition. In most cases, strategies for decarbonizing energy-intensive sectors rely on the electrification of end uses on the one hand, and on profoundly transforming the electricity generation mix to significantly reduce its carbon intensity on the other hand. Globally, the main strategy for reducing emissions from electricity generation has been to strongly support the development of renewable energy sources, primarily wind and solar photovoltaic energy.<\/p>\n\n\n\n

Speeding up the transition through more cost-effective investments<\/strong><\/strong><\/h2>\n\n\n\n

Over the past decade, global investments in wind and photovoltaic generation have averaged more than \u20ac200 billion per year<\/a>. However, scenarios developed by the Intergovernmental Panel on Climate Change (IPCC) suggest that the current rate of renewable energy deployment is insufficient to limit warming to 2\u00b0C throughout the 21st<\/sup> century<\/a>. Therefore, it seems likely that investments in renewable energy will remain significant, or even accelerate, over the next decade. Besides an increase in capital investments, such an acceleration could also be achieved by improving the cost-effectiveness of investments, that is, the quantity of renewable electricity generated for the same cost.<\/p>\n\n\n\n

Despite their apparent uniformity compared to conventional thermal power plants, wind and photovoltaic generation units are actually very heterogeneous in terms of their average cost of generation, as measured by their “levelized cost of electricity”\u00a0(LCOE)<\/a>1<\/a><\/sup>. Indeed, the wind or solar resource available may vary greatly depending on site location, and may be more or less readily accessible, depending on the proximity of the existing electricity grid. The installation and maintenance costs (normalized by capacity) also vary greatly depending on the type (e.g.<\/em> rooftop or ground-mounted) and the size of the unit. Lastly, different technologies may also vary greatly in terms of their conversion efficiency, for example depending on the type of photovoltaic technology used.<\/p>\n\n\n\n

Given this large amount of heterogeneity, deploying renewable energy cost-effectively, i.e. maximizing the amount of energy generated per euro spent, can be a strategy to accelerate significantly the energy transition.<\/p>\n\n\n\n

Utility-scale installations or distributed units?<\/strong><\/strong><\/h2>\n\n\n\n

One of the greatest sources of heterogeneity across renewable energy generation units is the distinction between large \u201cutility-scale\u201d installations and \u201cdistributed\u201d units. Utility-scale installations are connected to the transmission network: they benefit from significant economies of scale and can be located where wind and solar resources are abundant. However, they are often located far away from load centers, which increases power losses and grid connection and transmission costs. In contrast, distributed units are directly connected to the distribution system which supply end-users, limiting the need to transport the electricity generated. However, due to their smaller size, the LCOE of distributed units is two to three times higher than that of utility-scale installations<\/a>.<\/p>\n\n\n\n

Utility-scale (left) vs. distributed generation (right) in the power system.<\/h3>\n\n\n\n
\"\"
(\u00a9 Nicolas Astier diagram adapted from a U.S. Department of Energy diagram)<\/figcaption><\/figure>\n\n\n\n

A cost-effective deployment of renewable energy therefore requires finding the right mix between utility-scale installations and distributed units. While it is relatively easy to estimate a site\u2019s LCOE and its connection cost to the grid, the benefits derived from the \u201clocal\u201d nature of distributed generation units are much harder to quantify and are therefore greatly debated. Such benefits include possible savings in terms of power losses and future grid investments. Since power losses are too small to close the LCOE gap between distributed units and utility-scale installations, the rest of this article focuses on the question of potential savings in future grid investments.<\/p>\n\n\n\n

LCOE of utility-scale and distributed installations from 2010 to 2020 ($\/kWh).<\/h3>\n\n\n\n
\"\"
LCOE of utility-scale (global capacity-weighted-average) and distributed installations (average for France) from 2010 to 2020 ($\/kWh). \u00a9 Nicolas Astier, 2022 (data: IRENA, 2021).<\/figcaption><\/figure>\n\n\n\n

Distributed units and savings in future grid investments<\/strong><\/h2>\n\n\n\n

Although grid planning rules may vary across countries, and are not necessarily published in a transparent way, distribution networks are usually designed to supply customers with a low risk of load shedding, even in adverse situations. Such situations arise when the net consumption that must be served by a distribution network is particularly high. For a given distribution network, this net consumption corresponds to the difference between users\u2019 gross consumption and the generation of distributed units.<\/p>\n\n\n\n

Since electricity grids are designed to be able to deliver electricity to customers during periods where the local net consumption is highest, distributed units only lead to significant grid savings if they are very likely to generate electricity when the net consumption that distribution networks must deliver is very high.<\/p>\n\n\n\n

The case of France<\/strong><\/h2>\n\n\n\n

France is a particularly interesting case for an empirical study on distributed generation. Unlike other developed countries such as the United States, the vast majority of wind and photovoltaic capacity in France is distributed. Moreover, from the early 2000s to 2021, the installed capacity has increased significantly, from negligible quantities to 13.1 GW for photovoltaic energy, and 18.8 GW for wind energy<\/a>.<\/p>\n\n\n\n

An empirical analysis of the evolution of the net consumption delivered by distribution networks as distributed generation capacity has increased yields rather pessimistic conclusions on the ability of distributed generation to generate significant savings in future grid investments<\/a>. A marginal increase in distributed photovoltaic capacity does not, on average, lead to any significant decrease in the highest net consumption values. This may be partly explained by the prominence of electric heating in driving peak electricity demand in France. More surprisingly, distributed wind units are only associated with a slight decrease in the highest net consumption values (around 4% of nominal capacity). This finding seems partly due to the high correlation at the local level between the output of different wind turbines. Due to this correlation, the hours during which net consumption is the highest tend to correspond to periods when the wind does not blow, especially when the installed capacity of distributed wind is high (relative to local consumption), which is usually the case.<\/p>\n\n\n\n

Implications for public policy<\/strong><\/h2>\n\n\n\n

In the absence of empirical evidence suggesting that distributed renewables will generate significant savings in future grid investments, public policies favoring distributed units over utility-scale installations, as implemented in France so far, cannot be rationalized based on pure cost-effectiveness considerations. Distributed units generate less electricity per euro invested than utility-scale installations, without providing additional benefits of sufficient magnitude to close the gap. However, since connection costs and the opportunity cost of land needed for utility-scale installations are expected to increase with the development of renewables, distributed units and utility-scale installations will most likely both have a role to play in an efficient decarbonized electricity mix.<\/p>\n\n\n\n

Moreover, various approaches can be explored to take advantage of the local nature of distributed units. In particular, a smart use of local flexibilities (electric vehicles, demand response, etc.) could be beneficial in certain cases, provided that grid planning rules fully internalize this possibility.<\/p>\n\n\n\n

Future prospects<\/strong><\/h2>\n\n\n\n

To address the climate emergency, improving the cost-effectiveness of the deployment of renewable energy can be a key strategy to accelerate the energy transition. The case of solar and wind power in France, where public policies have so far favored distributed units over utility-scale installations, therefore raises a number of questions. Improving our understanding of the political and social trade-offs that led to observed choices, as well as the opportunity cost of not having chosen a cost-efficient trajectory, could help increasing the cost-effectiveness of the future investments in these technologies, and could also inform public policies supporting other emerging technologies (e.g.<\/em> hydrogen, electric vehicles charging).<\/p>\n\n\n\n

<\/div>\n\n\n
  1. The LCOE of a given facility is the present value of its costs (investment, operation and maintenance), divided by the discounted sum of the quantities of electricity generated by the unit over its lifetime. \u21a9\ufe0e<\/a><\/li><\/ol>","protected":false},"excerpt":{"rendered":"

    The need to drastically reduce global greenhouse gas emissions has led many countries to embark on a major energy transition. […]<\/p>\n","protected":false},"author":6,"featured_media":2150,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_related_content_post":[],"_related_content_subject":[937],"_related_content_author":[2173],"_related_content_category":[1720,1716],"_related_content_folder":[4197],"_excerpt":"Although wind and solar now account for a significant share of electricity generation in France (10% in 2021<\/a>), <\/em>their growth in the electricity mix is perceived by many as too slow in the face of the climate emergency. A more efficient deployment of these resources would make it possible to accelerate the energy transition without increasing its cost for society.","_duration":5,"_manual_duration":false,"footnotes":"[{\"content\":\"The LCOE of a given facility is the present value of its costs (investment, operation and maintenance), divided by the discounted sum of the quantities of electricity generated by the unit over its lifetime.\",\"id\":\"a6b9a0b7-41a5-4558-bf1b-5841b1dba5c3\"}]"},"article-types":[27],"class_list":["post-2168","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","article-types-folder"],"has_blocks":true,"block_data":[{"blockName":"enpc\/excerpt","attrs":{"lock":[],"metadata":[],"className":"","style":""},"innerBlocks":[],"innerHTML":"","innerContent":[],"rendered":""},{"blockName":"core\/image","attrs":{"id":2149,"sizeSlug":"large","linkDestination":"none","align":"wide","blob":"","url":"https:\/\/ingenius.ecoledesponts.fr\/wp-content\/uploads\/2022\/10\/photovoltaic-gf63e22ed7_1920-1024x576.jpg","alt":"","caption":null,"lightbox":[],"title":"","href":"","rel":"","linkClass":"","width":"","height":"","aspectRatio":"","scale":"","linkTarget":"","lock":[],"metadata":[],"className":"wp-block-image alignwide size-large","style":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    \"\"
    \u00a9 Pixabay<\/figcaption><\/figure>\n","innerContent":["\n
    \"\"
    \u00a9 Pixabay<\/figcaption><\/figure>\n"],"rendered":"\n
    \"\"
    \u00a9 Pixabay<\/figcaption><\/figure>\n"},{"blockName":"core\/paragraph","attrs":{"align":"","content":null,"dropCap":false,"placeholder":"","direction":"","lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    The need to drastically reduce global greenhouse gas emissions has led many countries to embark on a major energy transition. In most cases, strategies for decarbonizing energy-intensive sectors rely on the electrification of end uses on the one hand, and on profoundly transforming the electricity generation mix to significantly reduce its carbon intensity on the other hand. Globally, the main strategy for reducing emissions from electricity generation has been to strongly support the development of renewable energy sources, primarily wind and solar photovoltaic energy.<\/p>\n","innerContent":["\n

    The need to drastically reduce global greenhouse gas emissions has led many countries to embark on a major energy transition. In most cases, strategies for decarbonizing energy-intensive sectors rely on the electrification of end uses on the one hand, and on profoundly transforming the electricity generation mix to significantly reduce its carbon intensity on the other hand. Globally, the main strategy for reducing emissions from electricity generation has been to strongly support the development of renewable energy sources, primarily wind and solar photovoltaic energy.<\/p>\n"],"rendered":"\n

    The need to drastically reduce global greenhouse gas emissions has led many countries to embark on a major energy transition. In most cases, strategies for decarbonizing energy-intensive sectors rely on the electrification of end uses on the one hand, and on profoundly transforming the electricity generation mix to significantly reduce its carbon intensity on the other hand. Globally, the main strategy for reducing emissions from electricity generation has been to strongly support the development of renewable energy sources, primarily wind and solar photovoltaic energy.<\/p>\n"},{"blockName":"core\/heading","attrs":{"textColor":"red","textAlign":"","content":null,"level":2,"levelOptions":[],"placeholder":"","lock":[],"metadata":[],"align":"","className":"wp-block-heading has-red-color has-text-color","style":"","backgroundColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    Speeding up the transition through more cost-effective investments<\/strong><\/strong><\/h2>\n","innerContent":["\n

    Speeding up the transition through more cost-effective investments<\/strong><\/strong><\/h2>\n"],"rendered":"\n

    Speeding up the transition through more cost-effective investments<\/strong><\/strong><\/h2>\n"},{"blockName":"core\/paragraph","attrs":{"align":"","content":null,"dropCap":false,"placeholder":"","direction":"","lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    Over the past decade, global investments in wind and photovoltaic generation have averaged more than \u20ac200 billion per year<\/a>. However, scenarios developed by the Intergovernmental Panel on Climate Change (IPCC) suggest that the current rate of renewable energy deployment is insufficient to limit warming to 2\u00b0C throughout the 21st<\/sup> century<\/a>. Therefore, it seems likely that investments in renewable energy will remain significant, or even accelerate, over the next decade. Besides an increase in capital investments, such an acceleration could also be achieved by improving the cost-effectiveness of investments, that is, the quantity of renewable electricity generated for the same cost.<\/p>\n","innerContent":["\n

    Over the past decade, global investments in wind and photovoltaic generation have averaged more than \u20ac200 billion per year<\/a>. However, scenarios developed by the Intergovernmental Panel on Climate Change (IPCC) suggest that the current rate of renewable energy deployment is insufficient to limit warming to 2\u00b0C throughout the 21st<\/sup> century<\/a>. Therefore, it seems likely that investments in renewable energy will remain significant, or even accelerate, over the next decade. Besides an increase in capital investments, such an acceleration could also be achieved by improving the cost-effectiveness of investments, that is, the quantity of renewable electricity generated for the same cost.<\/p>\n"],"rendered":"\n

    Over the past decade, global investments in wind and photovoltaic generation have averaged more than \u20ac200 billion per year<\/a>. However, scenarios developed by the Intergovernmental Panel on Climate Change (IPCC) suggest that the current rate of renewable energy deployment is insufficient to limit warming to 2\u00b0C throughout the 21st<\/sup> century<\/a>. Therefore, it seems likely that investments in renewable energy will remain significant, or even accelerate, over the next decade. Besides an increase in capital investments, such an acceleration could also be achieved by improving the cost-effectiveness of investments, that is, the quantity of renewable electricity generated for the same cost.<\/p>\n"},{"blockName":"core\/paragraph","attrs":{"align":"","content":null,"dropCap":false,"placeholder":"","direction":"","lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    Despite their apparent uniformity compared to conventional thermal power plants, wind and photovoltaic generation units are actually very heterogeneous in terms of their average cost of generation, as measured by their \"levelized cost of electricity\"\u00a0(LCOE)<\/a>1<\/a><\/sup>. Indeed, the wind or solar resource available may vary greatly depending on site location, and may be more or less readily accessible, depending on the proximity of the existing electricity grid. The installation and maintenance costs (normalized by capacity) also vary greatly depending on the type (e.g.<\/em> rooftop or ground-mounted) and the size of the unit. Lastly, different technologies may also vary greatly in terms of their conversion efficiency, for example depending on the type of photovoltaic technology used.<\/p>\n","innerContent":["\n

    Despite their apparent uniformity compared to conventional thermal power plants, wind and photovoltaic generation units are actually very heterogeneous in terms of their average cost of generation, as measured by their \"levelized cost of electricity\"\u00a0(LCOE)<\/a>1<\/a><\/sup>. Indeed, the wind or solar resource available may vary greatly depending on site location, and may be more or less readily accessible, depending on the proximity of the existing electricity grid. The installation and maintenance costs (normalized by capacity) also vary greatly depending on the type (e.g.<\/em> rooftop or ground-mounted) and the size of the unit. Lastly, different technologies may also vary greatly in terms of their conversion efficiency, for example depending on the type of photovoltaic technology used.<\/p>\n"],"rendered":"\n

    Despite their apparent uniformity compared to conventional thermal power plants, wind and photovoltaic generation units are actually very heterogeneous in terms of their average cost of generation, as measured by their \"levelized cost of electricity\"\u00a0(LCOE)<\/a>1<\/a><\/sup>. Indeed, the wind or solar resource available may vary greatly depending on site location, and may be more or less readily accessible, depending on the proximity of the existing electricity grid. The installation and maintenance costs (normalized by capacity) also vary greatly depending on the type (e.g.<\/em> rooftop or ground-mounted) and the size of the unit. Lastly, different technologies may also vary greatly in terms of their conversion efficiency, for example depending on the type of photovoltaic technology used.<\/p>\n"},{"blockName":"core\/paragraph","attrs":{"align":"","content":null,"dropCap":false,"placeholder":"","direction":"","lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    Given this large amount of heterogeneity, deploying renewable energy cost-effectively, i.e. maximizing the amount of energy generated per euro spent, can be a strategy to accelerate significantly the energy transition.<\/p>\n","innerContent":["\n

    Given this large amount of heterogeneity, deploying renewable energy cost-effectively, i.e. maximizing the amount of energy generated per euro spent, can be a strategy to accelerate significantly the energy transition.<\/p>\n"],"rendered":"\n

    Given this large amount of heterogeneity, deploying renewable energy cost-effectively, i.e. maximizing the amount of energy generated per euro spent, can be a strategy to accelerate significantly the energy transition.<\/p>\n"},{"blockName":"core\/heading","attrs":{"textColor":"red","textAlign":"","content":null,"level":2,"levelOptions":[],"placeholder":"","lock":[],"metadata":[],"align":"","className":"wp-block-heading has-red-color has-text-color","style":"","backgroundColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    Utility-scale installations or distributed units?<\/strong><\/strong><\/h2>\n","innerContent":["\n

    Utility-scale installations or distributed units?<\/strong><\/strong><\/h2>\n"],"rendered":"\n

    Utility-scale installations or distributed units?<\/strong><\/strong><\/h2>\n"},{"blockName":"core\/paragraph","attrs":{"align":"","content":null,"dropCap":false,"placeholder":"","direction":"","lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    One of the greatest sources of heterogeneity across renewable energy generation units is the distinction between large \u201cutility-scale\u201d installations and \u201cdistributed\u201d units. Utility-scale installations are connected to the transmission network: they benefit from significant economies of scale and can be located where wind and solar resources are abundant. However, they are often located far away from load centers, which increases power losses and grid connection and transmission costs. In contrast, distributed units are directly connected to the distribution system which supply end-users, limiting the need to transport the electricity generated. However, due to their smaller size, the LCOE of distributed units is two to three times higher than that of utility-scale installations<\/a>.<\/p>\n","innerContent":["\n

    One of the greatest sources of heterogeneity across renewable energy generation units is the distinction between large \u201cutility-scale\u201d installations and \u201cdistributed\u201d units. Utility-scale installations are connected to the transmission network: they benefit from significant economies of scale and can be located where wind and solar resources are abundant. However, they are often located far away from load centers, which increases power losses and grid connection and transmission costs. In contrast, distributed units are directly connected to the distribution system which supply end-users, limiting the need to transport the electricity generated. However, due to their smaller size, the LCOE of distributed units is two to three times higher than that of utility-scale installations<\/a>.<\/p>\n"],"rendered":"\n

    One of the greatest sources of heterogeneity across renewable energy generation units is the distinction between large \u201cutility-scale\u201d installations and \u201cdistributed\u201d units. Utility-scale installations are connected to the transmission network: they benefit from significant economies of scale and can be located where wind and solar resources are abundant. However, they are often located far away from load centers, which increases power losses and grid connection and transmission costs. In contrast, distributed units are directly connected to the distribution system which supply end-users, limiting the need to transport the electricity generated. However, due to their smaller size, the LCOE of distributed units is two to three times higher than that of utility-scale installations<\/a>.<\/p>\n"},{"blockName":"core\/heading","attrs":{"level":3,"textColor":"medium-grey","textAlign":"","content":null,"levelOptions":[],"placeholder":"","lock":[],"metadata":[],"align":"","className":"wp-block-heading has-medium-grey-color has-text-color","style":"","backgroundColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    Utility-scale (left) vs. distributed generation (right) in the power system.<\/h3>\n","innerContent":["\n

    Utility-scale (left) vs. distributed generation (right) in the power system.<\/h3>\n"],"rendered":"\n

    Utility-scale (left) vs. distributed generation (right) in the power system.<\/h3>\n"},{"blockName":"core\/image","attrs":{"id":2204,"sizeSlug":"full","linkDestination":"none","align":"center","blob":"","url":"https:\/\/ingenius.ecoledesponts.fr\/wp-content\/uploads\/2022\/10\/Figure2_N_Astier.png","alt":"","caption":null,"lightbox":[],"title":"","href":"","rel":"","linkClass":"","width":"","height":"","aspectRatio":"","scale":"","linkTarget":"","lock":[],"metadata":[],"className":"wp-block-image aligncenter size-full","style":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n
    \"\"
    (\u00a9 Nicolas Astier diagram adapted from a U.S. Department of Energy diagram)<\/figcaption><\/figure>\n","innerContent":["\n
    \"\"
    (\u00a9 Nicolas Astier diagram adapted from a U.S. Department of Energy diagram)<\/figcaption><\/figure>\n"],"rendered":"\n
    \"\"
    (\u00a9 Nicolas Astier diagram adapted from a U.S. Department of Energy diagram)<\/figcaption><\/figure>\n"},{"blockName":"core\/paragraph","attrs":{"align":"","content":null,"dropCap":false,"placeholder":"","direction":"","lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    A cost-effective deployment of renewable energy therefore requires finding the right mix between utility-scale installations and distributed units. While it is relatively easy to estimate a site\u2019s LCOE and its connection cost to the grid, the benefits derived from the \u201clocal\u201d nature of distributed generation units are much harder to quantify and are therefore greatly debated. Such benefits include possible savings in terms of power losses and future grid investments. Since power losses are too small to close the LCOE gap between distributed units and utility-scale installations, the rest of this article focuses on the question of potential savings in future grid investments.<\/p>\n","innerContent":["\n

    A cost-effective deployment of renewable energy therefore requires finding the right mix between utility-scale installations and distributed units. While it is relatively easy to estimate a site\u2019s LCOE and its connection cost to the grid, the benefits derived from the \u201clocal\u201d nature of distributed generation units are much harder to quantify and are therefore greatly debated. Such benefits include possible savings in terms of power losses and future grid investments. Since power losses are too small to close the LCOE gap between distributed units and utility-scale installations, the rest of this article focuses on the question of potential savings in future grid investments.<\/p>\n"],"rendered":"\n

    A cost-effective deployment of renewable energy therefore requires finding the right mix between utility-scale installations and distributed units. While it is relatively easy to estimate a site\u2019s LCOE and its connection cost to the grid, the benefits derived from the \u201clocal\u201d nature of distributed generation units are much harder to quantify and are therefore greatly debated. Such benefits include possible savings in terms of power losses and future grid investments. Since power losses are too small to close the LCOE gap between distributed units and utility-scale installations, the rest of this article focuses on the question of potential savings in future grid investments.<\/p>\n"},{"blockName":"core\/heading","attrs":{"level":3,"textColor":"medium-grey","textAlign":"","content":null,"levelOptions":[],"placeholder":"","lock":[],"metadata":[],"align":"","className":"wp-block-heading has-medium-grey-color has-text-color","style":"","backgroundColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    LCOE of utility-scale and distributed installations from 2010 to 2020 ($\/kWh).<\/h3>\n","innerContent":["\n

    LCOE of utility-scale and distributed installations from 2010 to 2020 ($\/kWh).<\/h3>\n"],"rendered":"\n

    LCOE of utility-scale and distributed installations from 2010 to 2020 ($\/kWh).<\/h3>\n"},{"blockName":"core\/image","attrs":{"id":2555,"sizeSlug":"full","linkDestination":"none","align":"center","blob":"","url":"https:\/\/ingenius.ecoledesponts.fr\/wp-content\/uploads\/2022\/10\/Figure1_N_Astier_EN.png","alt":"","caption":null,"lightbox":[],"title":"","href":"","rel":"","linkClass":"","width":"","height":"","aspectRatio":"","scale":"","linkTarget":"","lock":[],"metadata":[],"className":"wp-block-image aligncenter size-full","style":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n
    \"\"
    LCOE of utility-scale (global capacity-weighted-average) and distributed installations (average for France) from 2010 to 2020 ($\/kWh). \u00a9 Nicolas Astier, 2022 (data: IRENA, 2021).<\/figcaption><\/figure>\n","innerContent":["\n
    \"\"
    LCOE of utility-scale (global capacity-weighted-average) and distributed installations (average for France) from 2010 to 2020 ($\/kWh). \u00a9 Nicolas Astier, 2022 (data: IRENA, 2021).<\/figcaption><\/figure>\n"],"rendered":"\n
    \"\"
    LCOE of utility-scale (global capacity-weighted-average) and distributed installations (average for France) from 2010 to 2020 ($\/kWh). \u00a9 Nicolas Astier, 2022 (data: IRENA, 2021).<\/figcaption><\/figure>\n"},{"blockName":"core\/heading","attrs":{"textColor":"red","textAlign":"","content":null,"level":2,"levelOptions":[],"placeholder":"","lock":[],"metadata":[],"align":"","className":"wp-block-heading has-red-color has-text-color","style":"","backgroundColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    Distributed units and savings in future grid investments<\/strong><\/h2>\n","innerContent":["\n

    Distributed units and savings in future grid investments<\/strong><\/h2>\n"],"rendered":"\n

    Distributed units and savings in future grid investments<\/strong><\/h2>\n"},{"blockName":"core\/paragraph","attrs":{"align":"","content":null,"dropCap":false,"placeholder":"","direction":"","lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    Although grid planning rules may vary across countries, and are not necessarily published in a transparent way, distribution networks are usually designed to supply customers with a low risk of load shedding, even in adverse situations. Such situations arise when the net consumption that must be served by a distribution network is particularly high. For a given distribution network, this net consumption corresponds to the difference between users\u2019 gross consumption and the generation of distributed units.<\/p>\n","innerContent":["\n

    Although grid planning rules may vary across countries, and are not necessarily published in a transparent way, distribution networks are usually designed to supply customers with a low risk of load shedding, even in adverse situations. Such situations arise when the net consumption that must be served by a distribution network is particularly high. For a given distribution network, this net consumption corresponds to the difference between users\u2019 gross consumption and the generation of distributed units.<\/p>\n"],"rendered":"\n

    Although grid planning rules may vary across countries, and are not necessarily published in a transparent way, distribution networks are usually designed to supply customers with a low risk of load shedding, even in adverse situations. Such situations arise when the net consumption that must be served by a distribution network is particularly high. For a given distribution network, this net consumption corresponds to the difference between users\u2019 gross consumption and the generation of distributed units.<\/p>\n"},{"blockName":"core\/paragraph","attrs":{"align":"","content":null,"dropCap":false,"placeholder":"","direction":"","lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    Since electricity grids are designed to be able to deliver electricity to customers during periods where the local net consumption is highest, distributed units only lead to significant grid savings if they are very likely to generate electricity when the net consumption that distribution networks must deliver is very high.<\/p>\n","innerContent":["\n

    Since electricity grids are designed to be able to deliver electricity to customers during periods where the local net consumption is highest, distributed units only lead to significant grid savings if they are very likely to generate electricity when the net consumption that distribution networks must deliver is very high.<\/p>\n"],"rendered":"\n

    Since electricity grids are designed to be able to deliver electricity to customers during periods where the local net consumption is highest, distributed units only lead to significant grid savings if they are very likely to generate electricity when the net consumption that distribution networks must deliver is very high.<\/p>\n"},{"blockName":"core\/heading","attrs":{"textColor":"red","textAlign":"","content":null,"level":2,"levelOptions":[],"placeholder":"","lock":[],"metadata":[],"align":"","className":"wp-block-heading has-red-color has-text-color","style":"","backgroundColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    The case of France<\/strong><\/h2>\n","innerContent":["\n

    The case of France<\/strong><\/h2>\n"],"rendered":"\n

    The case of France<\/strong><\/h2>\n"},{"blockName":"core\/paragraph","attrs":{"align":"","content":null,"dropCap":false,"placeholder":"","direction":"","lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    France is a particularly interesting case for an empirical study on distributed generation. Unlike other developed countries such as the United States, the vast majority of wind and photovoltaic capacity in France is distributed. Moreover, from the early 2000s to 2021, the installed capacity has increased significantly, from negligible quantities to 13.1 GW for photovoltaic energy, and 18.8 GW for wind energy<\/a>.<\/p>\n","innerContent":["\n

    France is a particularly interesting case for an empirical study on distributed generation. Unlike other developed countries such as the United States, the vast majority of wind and photovoltaic capacity in France is distributed. Moreover, from the early 2000s to 2021, the installed capacity has increased significantly, from negligible quantities to 13.1 GW for photovoltaic energy, and 18.8 GW for wind energy<\/a>.<\/p>\n"],"rendered":"\n

    France is a particularly interesting case for an empirical study on distributed generation. Unlike other developed countries such as the United States, the vast majority of wind and photovoltaic capacity in France is distributed. Moreover, from the early 2000s to 2021, the installed capacity has increased significantly, from negligible quantities to 13.1 GW for photovoltaic energy, and 18.8 GW for wind energy<\/a>.<\/p>\n"},{"blockName":"core\/paragraph","attrs":{"align":"","content":null,"dropCap":false,"placeholder":"","direction":"","lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    An empirical analysis of the evolution of the net consumption delivered by distribution networks as distributed generation capacity has increased yields rather pessimistic conclusions on the ability of distributed generation to generate significant savings in future grid investments<\/a>. A marginal increase in distributed photovoltaic capacity does not, on average, lead to any significant decrease in the highest net consumption values. This may be partly explained by the prominence of electric heating in driving peak electricity demand in France. More surprisingly, distributed wind units are only associated with a slight decrease in the highest net consumption values (around 4% of nominal capacity). This finding seems partly due to the high correlation at the local level between the output of different wind turbines. Due to this correlation, the hours during which net consumption is the highest tend to correspond to periods when the wind does not blow, especially when the installed capacity of distributed wind is high (relative to local consumption), which is usually the case.<\/p>\n","innerContent":["\n

    An empirical analysis of the evolution of the net consumption delivered by distribution networks as distributed generation capacity has increased yields rather pessimistic conclusions on the ability of distributed generation to generate significant savings in future grid investments<\/a>. A marginal increase in distributed photovoltaic capacity does not, on average, lead to any significant decrease in the highest net consumption values. This may be partly explained by the prominence of electric heating in driving peak electricity demand in France. More surprisingly, distributed wind units are only associated with a slight decrease in the highest net consumption values (around 4% of nominal capacity). This finding seems partly due to the high correlation at the local level between the output of different wind turbines. Due to this correlation, the hours during which net consumption is the highest tend to correspond to periods when the wind does not blow, especially when the installed capacity of distributed wind is high (relative to local consumption), which is usually the case.<\/p>\n"],"rendered":"\n

    An empirical analysis of the evolution of the net consumption delivered by distribution networks as distributed generation capacity has increased yields rather pessimistic conclusions on the ability of distributed generation to generate significant savings in future grid investments<\/a>. A marginal increase in distributed photovoltaic capacity does not, on average, lead to any significant decrease in the highest net consumption values. This may be partly explained by the prominence of electric heating in driving peak electricity demand in France. More surprisingly, distributed wind units are only associated with a slight decrease in the highest net consumption values (around 4% of nominal capacity). This finding seems partly due to the high correlation at the local level between the output of different wind turbines. Due to this correlation, the hours during which net consumption is the highest tend to correspond to periods when the wind does not blow, especially when the installed capacity of distributed wind is high (relative to local consumption), which is usually the case.<\/p>\n"},{"blockName":"core\/heading","attrs":{"textColor":"red","textAlign":"","content":null,"level":2,"levelOptions":[],"placeholder":"","lock":[],"metadata":[],"align":"","className":"wp-block-heading has-red-color has-text-color","style":"","backgroundColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    Implications for public policy<\/strong><\/h2>\n","innerContent":["\n

    Implications for public policy<\/strong><\/h2>\n"],"rendered":"\n

    Implications for public policy<\/strong><\/h2>\n"},{"blockName":"core\/paragraph","attrs":{"align":"","content":null,"dropCap":false,"placeholder":"","direction":"","lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    In the absence of empirical evidence suggesting that distributed renewables will generate significant savings in future grid investments, public policies favoring distributed units over utility-scale installations, as implemented in France so far, cannot be rationalized based on pure cost-effectiveness considerations. Distributed units generate less electricity per euro invested than utility-scale installations, without providing additional benefits of sufficient magnitude to close the gap. However, since connection costs and the opportunity cost of land needed for utility-scale installations are expected to increase with the development of renewables, distributed units and utility-scale installations will most likely both have a role to play in an efficient decarbonized electricity mix.<\/p>\n","innerContent":["\n

    In the absence of empirical evidence suggesting that distributed renewables will generate significant savings in future grid investments, public policies favoring distributed units over utility-scale installations, as implemented in France so far, cannot be rationalized based on pure cost-effectiveness considerations. Distributed units generate less electricity per euro invested than utility-scale installations, without providing additional benefits of sufficient magnitude to close the gap. However, since connection costs and the opportunity cost of land needed for utility-scale installations are expected to increase with the development of renewables, distributed units and utility-scale installations will most likely both have a role to play in an efficient decarbonized electricity mix.<\/p>\n"],"rendered":"\n

    In the absence of empirical evidence suggesting that distributed renewables will generate significant savings in future grid investments, public policies favoring distributed units over utility-scale installations, as implemented in France so far, cannot be rationalized based on pure cost-effectiveness considerations. Distributed units generate less electricity per euro invested than utility-scale installations, without providing additional benefits of sufficient magnitude to close the gap. However, since connection costs and the opportunity cost of land needed for utility-scale installations are expected to increase with the development of renewables, distributed units and utility-scale installations will most likely both have a role to play in an efficient decarbonized electricity mix.<\/p>\n"},{"blockName":"core\/paragraph","attrs":{"align":"","content":null,"dropCap":false,"placeholder":"","direction":"","lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    Moreover, various approaches can be explored to take advantage of the local nature of distributed units. In particular, a smart use of local flexibilities (electric vehicles, demand response, etc.) could be beneficial in certain cases, provided that grid planning rules fully internalize this possibility.<\/p>\n","innerContent":["\n

    Moreover, various approaches can be explored to take advantage of the local nature of distributed units. In particular, a smart use of local flexibilities (electric vehicles, demand response, etc.) could be beneficial in certain cases, provided that grid planning rules fully internalize this possibility.<\/p>\n"],"rendered":"\n

    Moreover, various approaches can be explored to take advantage of the local nature of distributed units. In particular, a smart use of local flexibilities (electric vehicles, demand response, etc.) could be beneficial in certain cases, provided that grid planning rules fully internalize this possibility.<\/p>\n"},{"blockName":"core\/heading","attrs":{"textColor":"red","textAlign":"","content":null,"level":2,"levelOptions":[],"placeholder":"","lock":[],"metadata":[],"align":"","className":"wp-block-heading has-red-color has-text-color","style":"","backgroundColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    Future prospects<\/strong><\/h2>\n","innerContent":["\n

    Future prospects<\/strong><\/h2>\n"],"rendered":"\n

    Future prospects<\/strong><\/h2>\n"},{"blockName":"core\/paragraph","attrs":{"align":"","content":null,"dropCap":false,"placeholder":"","direction":"","lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","anchor":""},"innerBlocks":[],"innerHTML":"\n

    To address the climate emergency, improving the cost-effectiveness of the deployment of renewable energy can be a key strategy to accelerate the energy transition. The case of solar and wind power in France, where public policies have so far favored distributed units over utility-scale installations, therefore raises a number of questions. Improving our understanding of the political and social trade-offs that led to observed choices, as well as the opportunity cost of not having chosen a cost-efficient trajectory, could help increasing the cost-effectiveness of the future investments in these technologies, and could also inform public policies supporting other emerging technologies (e.g.<\/em> hydrogen, electric vehicles charging).<\/p>\n","innerContent":["\n

    To address the climate emergency, improving the cost-effectiveness of the deployment of renewable energy can be a key strategy to accelerate the energy transition. The case of solar and wind power in France, where public policies have so far favored distributed units over utility-scale installations, therefore raises a number of questions. Improving our understanding of the political and social trade-offs that led to observed choices, as well as the opportunity cost of not having chosen a cost-efficient trajectory, could help increasing the cost-effectiveness of the future investments in these technologies, and could also inform public policies supporting other emerging technologies (e.g.<\/em> hydrogen, electric vehicles charging).<\/p>\n"],"rendered":"\n

    To address the climate emergency, improving the cost-effectiveness of the deployment of renewable energy can be a key strategy to accelerate the energy transition. The case of solar and wind power in France, where public policies have so far favored distributed units over utility-scale installations, therefore raises a number of questions. Improving our understanding of the political and social trade-offs that led to observed choices, as well as the opportunity cost of not having chosen a cost-efficient trajectory, could help increasing the cost-effectiveness of the future investments in these technologies, and could also inform public policies supporting other emerging technologies (e.g.<\/em> hydrogen, electric vehicles charging).<\/p>\n"},{"blockName":"core\/spacer","attrs":{"height":"0px","width":"","lock":[],"metadata":[],"className":"wp-block-spacer","style":"height:0px","anchor":""},"innerBlocks":[],"innerHTML":"\n

    <\/div>\n","innerContent":["\n
    <\/div>\n"],"rendered":"\n
    <\/div>\n"},{"blockName":"core\/footnotes","attrs":{"lock":[],"metadata":[],"className":"","style":"","backgroundColor":"","textColor":"","fontSize":"","fontFamily":"","borderColor":""},"innerBlocks":[],"innerHTML":"","innerContent":[],"rendered":""}],"seo":{"title":"How can France speed up its energy transition?"},"media":{"img":"\"\"","src":"https:\/\/ingenius.ecoledesponts.fr\/wp-content\/uploads\/2022\/10\/photovoltaic-gf63e22ed7_1920.jpg"},"url":"\/en\/articles\/how-can-france-speed-up-its-energy-transition\/","related":{"post":[],"author":[{"title":"Nicolas Astier","url":"\/en\/authors\/nicolas-astier\/","id":"2173","media":"\"\"","slug":"nicolas-astier"}],"subject":[{"title":"Energy, Ecology & Climate","url":"\/en\/subjects\/energy-ecology-climate\/","id":"937","media":"\"\"","slug":"energy-ecology-climate"}],"category":[{"title":"Article collection","url":"\/en\/articles\/category\/dossier\/","id":"1720","media":"","slug":"dossier","_related_post_type":"folder"},{"title":"Articles","url":"\/en\/articles\/category\/articles\/","id":"1716","media":"","slug":"articles","_related_post_type":""}],"folder":[{"title":"Climate Change","url":"\/en\/folders\/climate-change\/","id":"4197","media":"\"\"","slug":"climate-change"}]},"translated":"https:\/\/ingenius.ecoledesponts.fr\/articles\/comment-accelerer-la-transition-energetique-en-france\/","icon":"icon-folder","duration":"5","custom_excerpt":"Although wind and solar now account for a significant share of electricity generation in France (10% in 2021<\/a>), <\/em>their growth in the electricity mix is perceived by many as too slow in the face of the climate emergency. A more efficient deployment of these resources would make it possible to accelerate the energy transition without increasing its cost for society.","duration_type":"","_links":{"self":[{"href":"https:\/\/ingenius.ecoledesponts.fr\/en\/wp-json\/wp\/v2\/posts\/2168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ingenius.ecoledesponts.fr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ingenius.ecoledesponts.fr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ingenius.ecoledesponts.fr\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/ingenius.ecoledesponts.fr\/en\/wp-json\/wp\/v2\/comments?post=2168"}],"version-history":[{"count":4,"href":"https:\/\/ingenius.ecoledesponts.fr\/en\/wp-json\/wp\/v2\/posts\/2168\/revisions"}],"predecessor-version":[{"id":8960,"href":"https:\/\/ingenius.ecoledesponts.fr\/en\/wp-json\/wp\/v2\/posts\/2168\/revisions\/8960"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ingenius.ecoledesponts.fr\/en\/wp-json\/wp\/v2\/media\/2150"}],"wp:attachment":[{"href":"https:\/\/ingenius.ecoledesponts.fr\/en\/wp-json\/wp\/v2\/media?parent=2168"}],"wp:term":[{"taxonomy":"article-types","embeddable":true,"href":"https:\/\/ingenius.ecoledesponts.fr\/en\/wp-json\/wp\/v2\/article-types?post=2168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}