Based on research reports and dialogue through expert seminars organized by IDDRI and Agora Energiewende in 2015, this Working Paper proposes a synthesis of the main challenges for the integration of renewable energies using an analysis of the electricity system and its potential for optimization over different time frames: the potential evolution of electricity systems at the regional and national levels in France between now and 2030; an analysis of the needs and options for flexibility services beyond production systems; the potentiel for optimization of instruments to encourage short-term integration in line with changes in regulation regarding RES support schemes.
KEY MESSAGES:
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ANALYSIS OF FLEXIBILITY REQUIREMENTS AND INTEGRATION LEVERS: THE NEED FOR A SYSTEMIC APPROACH
Achieving the targets for renewable energy development (RES-E) in France (40% share of the electricity consumption) and in Europe (approximately 50%) by 2030 poses new integration challenges. The successful transformation of the electricity system based on a significant renewable component requires a systemic approach which takes into account: the evolution of demand and supply (for electricity and all energy), the interactions and competition between flexibility options for system stabilization (interconnections, active demand-side management, storage), the development of relevant infrastructure and articulation between the technical system and market design. A forward-looking analysis of electricity systems helps to assess this increase in flexibility requirements while identifying several optimization options to facilitate RES integration, starting with regional coordination.
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40% SHARE OF RENEWABLES IN FRANCE: A TARGET THAT CAN BE ACHIEVED IF PLANNING IS COHERENT
France already has a flexible electricity system, thanks notably to its hydro potential. Even so, its evolution towards 40% RES by 2030 calls for some strategic choices. On the one hand, drawing up a long-term trajectory for the evolution of electricity demand—in terms of volume as well as the nature of needs addressed—seems essential to bring coherence to the evolution of the technology portfolio and to increase the demand-side potential for flexibility. On the other hand, the deployment of RES calls for a considering of the size and operational management of the nuclear fleet in the future, between a traditional function as baseload or more flexible load-following.
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TAKING INTO ACCOUNT OPTIMIZATION POTENTIAL IN THE REFORM OF RENEWABLE ENERGY SUPPORT SCHEMES
The implementation of market premia aims at facilitating the economic integration of RES by making producers more responsible. It also represents an interesting potential to optimize the RES technical integration. Nevertheless, a careful calibration of the mechanism is necessary to limit the impact of this change in regulation on the cost and achievement of the targets for electric renewable energy development.
