Government hints at cuts in the renewable energy sector: Ademe’s financing of heating networks could be at risk • Thaon-les-Vosges Launches 25-Year District Heating Project • Dalkia Begins Installation of District Heating Network in Thonon-les-Bains • Read more about the developments in sustainable heating and cooling in this month's news update from France
France’s renewable energy sector is bracing for a potential budget cut, as green energy developers and heating network operators express growing concerns about the government’s austerity measures. Following reductions in aid for electric vehicle purchases and energy renovation programs, industry professionals fear that renewable energy subsidies may be next on the chopping block. According to Les Echos, a leaked letter from the government to the Ministry of Ecological Transition has suggested a significant 35% cut to Ademe’s 2025 budget, alarming stakeholders who depend on these funds to drive projects within renewable energy sectors.
The president of the Federation of Energy and Environment Services, Pierre de Montlivault, warned that such budget cuts could equate to a reduction in Ademe’s heat fund to €500 million, and that this would risk depleting available aid prematurely in 2025. These funds are crucial for local authorities planning to extend, modernize, or develop new heating networks, which have seen a surge in demand since the Ukraine war and rising gas prices. In 2023, Ademe received €1.3 billion in funding requests but could only meet €820 million due to financial constraints.
While wind and solar energy producers seem exempt from new electricity production taxes, they too remain uneasy as energy prices fluctuate. With the falling cost of electricity and long-term power purchase agreements, renewable energy subsidies are increasingly seen as a burden on public finances, and risk cuts with increasing austerity measures. Industry leaders are calling for renewed government support to accelerate electrification and green energy investments, warning that any slowdown in funding could jeopardize France’s long-term energy goals.
Read more in article from Les Echos
On September 5, 2024, officials in Thaon-les-Vosges, including Mayor Cédric Haxaire and representatives from ENGIE Solutions and SEM Terr’EnR, signed an agreement to launch a new district heating network. Managed by Thaon Energie, a partnership between ENGIE Solutions and the semi-public company Terr’EnR, the project grants a 25-year Public Service Delegation for the construction and operation of the network. This district heating initiative is part of the city’s broader plan to decarbonize its energy system by utilizing local, renewable resources.
The core of the project involves a 10 GWh biomass boiler that will produce 95% of the heat for the district network from locally-sourced biomass within a 45-kilometer radius. This network will extend nearly 7 kilometers and connect 49 substations, providing district heating to 1,395 housing equivalents. The project includes a backup gas boiler to ensure reliability. By switching to this district heating system, the city aims to significantly reduce its reliance on fossil fuels, cutting its carbon emissions by 93%, equivalent to 86,625 tonnes of CO2 over the course of the 25-year delegation contract.
In addition to its heating capabilities, the project incorporates environmentally friendly construction practices, including rainwater recovery systems, photovoltaic panels, and the use of biosourced materials. The design also includes provisions for minimizing air pollution and preserving local biodiversity around the heating plant. The installation of charging stations for electric vehicles complements the district energy network’s goal of reducing the city’s overall environmental footprint.
Read more in article from 100% Vosges
In September 2024, Dalkia began the installation of a district heating network in Thonon-les-Bains. Preliminary work started in mid-August, with initial construction on the boiler room and earthworks beginning shortly thereafter.
The district heating network will cover 12.4 kilometers of pipelines and include 76 distribution substations. Two boiler rooms will be installed: one powered by biomass with supplementary gas, and a secondary relay boiler room fueled solely by gas. The system is expected to serve nearly 4,200 housing units and 16 public buildings, offering cost reductions in heating and hot water for local households by an average of 16%.
The project will integrate an energy mix consisting of 85% renewable sources, significantly reducing the town’s carbon footprint. It is expected to lower emissions by 10,400 tons per year, comparable to the impact of removing 5,750 cars from circulation. The total investment amounts to a private investment of €44 million, and €15 million in funding from ADEME.
Read more in article from Mes Infos
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