Engie plans a six-fold increase in renewable electricity

After the manager of the electricity transmission network (RTE) it is Engie's turn to play the game of forecasting. The gas group is diverting its vision of the energy future on a European scale. While the government is preparing the next climate energy programming law, the energy company wants to make its voice heard.

Engie is headwind against government choices that would condemn a technology in the more or less short term. A crucial point as the government multiplies announcements in favor of energy renovation, but also the replacement of oil or gas boilers. The showdown promises to be tough. Ultimate argument: gas boilers are largely manufactured in France, while heat pumps come from China....

The message sent by the group is in a few points. While the demand for electricity is expected to increase by 80% by 2050, it will be necessary to multiply by 6 the production of renewable electricity, mainly solar and wind. To reach this conclusion, the energy systems of fifteen European countries, including France and Germany, were scrutinized. All technologies are integrated, but also the specificities of consumption of different countries. Catherine MacGregor, Managing Director of Engie insists on a specific point: "we must activate all possible levers for decarbonization to achieve the objective of reducing CO2 emissions by 4% per year and achieve net zero carbon. in less than 30 years. Thus, the rate of reduction of CO2 emissions must be multiplied by four. "We must be pragmatic and not close the place to technologies, there is no room for ideology or dogmatism", added Catherine MacGregor who “believes in the importance of gas. Relying solely on the electron poses too many risks to the system”.

The energy company drew a conclusion in seven points from its 2050 scenario. First, a plurality of technological choices is necessary, without a dogmatic approach. Then, to meet European climate commitments, i.e. to aim for a 34% reduction in energy consumption by 2050, we must more particularly massiveize the efficient renovation of buildings. It is necessary “that the European production of wind and solar electricity must be multiplied by 3.5 by 2035 and by 6 by 2050”. Next, the storage of electricity must bring flexibility to the system. Several solutions are possible: such as battery storage or combined cycle gas turbines. According to Engie's estimates, 600 GW of capacity will be needed, an absolutely colossal figure.

Engie also defends in its conclusions the importance of gas which “will be completely decarbonized by 2050 and will play a key role in the energy transition”. In France, biomethane will play a preponderant role and will represent two-thirds of demand in 2050, demand which will then be halved. Above all, the biomass potential is “sufficient”. A strong position, while voices are rising in particular within government to affirm the opposite. Another important gas is decarbonated hydrogen and molecules produced from hydrogen (e-molecules). Demand will be multiplied by 8 by 2050, made up of 75% of transport and 25% for the most difficult industrial sectors to decarbonise such as steel. Nearly half of this hydrogen will be produced locally. Finally, investments in electricity infrastructure will increase massively, while existing gas infrastructure can be adapted to a completely carbon-free energy mix at a limited cost.

Based on these analyses, Engie has formulated recommendations for French and European public decision-makers. This would include stabilizing the investment framework to develop electricity and gas renewable energies, but also facilitating and accelerating connection to the electricity grids. The issuing of necessary permits for projects should also be stabilized and accelerated. To facilitate the development of the hydrogen sector, Engie calls for the finalization of the European regulatory framework and the guarantee of the speed of granting public funding. The financing of the conversion of gas infrastructures to make them compatible with hydrogen should also be taken into account. Finally, new remuneration models should be put in place to encourage the development of flexible capacities.