Working paper

Electrical systems in the energy transition in France and Europe

Faced with the development of decentralised renewable energy production and "smart grids’’, how can we rethink the governance of European electricity systems, and finance the decarbonisation of our electricity?

Published on : 28/11/2019

Temps de lecture

5 minutes

Electricity has become an essential asset in the dual digital and ecological transition. From electric vehicles to heat pumps, the reduction of CO2 emissions requires an increasing use of electricity. These developments offer fresh challenges to power systems: the integration of renewable energies, the development of decentralised production and storage facilities, and the arrival of "smart grids". And because electricity is "a long-term industry » we must evaluate its transformation as soon as possible to avoid the risk of destabilizing the system as a whole. Thus France Stratégie is posting two contributions to this debate online.

In an initial working document, Dominique Auverlot asked three European economists, Dieter Helm, Marc-Oliver Bettzüge and Fabien Roques, to formulate proposals to reorganise the sector at the European level, five years after their contribution about the crisis in the electricity system. What regulations are needed by 2030 to ensure the transition to carbon neutrality in the European energy system? This is a question an international group of experts aims to answer, taking into account the specific problem of the price of electricity for the customer. Europe's dependence on the importation of hydrocarbons and equipment such as photovoltaic solar panels or batteries is an increasing concern. The integration of intermittent renewable energies into the power system is, indeed, a pariticularly senstive issue, because of their technical specificies which tend to weak the system. In addition, renewable energies still need financial state support.

Distribution networks continue to be strongly affected. Indeed, according to the European Commission, sixty-four percent of the estimated cost of the energy transition (450 billion euros) is related to the investments needed to adapt these networks (including the transmission network). In the French case, which Étienne Beeker examined in a second working paper, it is clear that the distribution network faces formidable challenges. Managed chiefly by Enedis, it has played until now only a role in delivering electricity to the final customer. This role is necessarily evolving with the development of decentralized renewable energy production, storage opportunities, and electric vehicles, together with citizens' aspirations for energy self-sufficiency. It is also becoming more complex with the advent of "smart grids"--that is, the integration of digital technologies (especially smart meters and connected objects) to optimize energy production and consumption.

A historically centralized electricity system
From the outset, distribution networks have been the property of local authorities. Their management is entrusted to an operator within the framework of a public service delegation. The nationalization law of 1946 added a national organization around EDF to this territorial structure.
RTE - Very-high-voltage transmission network
ENEDIS - Medium- and low-voltage distribution network
This organization of distribution around a national operator has enabled France to :
establish solidarity between regions ;
invest in new technologies, making its network one of the most automated in Europe;
offer consumers a competitive rate compared with other European countries.
A power system under stress
In addition to these objectives of security of supply and price, there is the imperative of reducing CO2 emissions. To meet these objectives, we need to adapt our networks.
A challenge for the grid: integrating renewable energies
Renewable energies account for 15% of France's total electricity output, and are connected to the distribution grid in 95% of cases.
Until now, the grid's role has been “rather passive”, consisting in routing downstream power flows to the consumer. The intermittent nature of decentralized renewable energy production is changing all that. From now on, flows are bidirectional. The grid has to take over when there's no wind or sun, for example. Conversely, it must also “feed back” energy not consumed to the extra-high-voltage grid.
Eco-districts, local energy communities, positive-energy buildings... the number of self-consumption installations could reach 4 million by 2030, according to RTE.
Electrification of uses and smart grids
Electric vehicles, heat pumps, home automation... the transition to a low-carbon economy requires the electrification of everyday uses.
For example, the arrival in the medium term of millions of electric vehicles and “mobile” charging points to be connected to the grid raises the question of recharging infrastructures, and how to manage power peaks if all vehicles were to recharge at the same time.

Smart grids can help meet this need for greater flexibility by more effectively managing the balance between electricity supply and demand. But they also require the network to collect large quantities of data, protect it against cybercrime and provide it to users.
Conclusion
The distribution network is therefore bound to evolve, while continuing to guarantee solidarity between territories. Because electricity is a “long-term industry”, we need to start thinking about this transformation now, to prevent the often underestimated risk of destabilizing the entire system.