Largest energy consumers with very little incentive for energy efficiency

The Energy Savings Certificates (CEE) system, the main financial aid for energy saving work for both individuals and professionals, should enable France to achieve almost half of its European objectives. But it is largely under-exploited by these sectors.

Consequently, the significant increase in the volume of obligation of the CEE, both in classic CEE and in precarious CEE, seems essential to encourage the energy consuming and CO2 emitting sectors to launch energy saving work, achieve national and European objectives and consolidate the professional sectors that France needs. The cost of this measure on energy prices would be limited. Calculations and lighting by the Hellio group, a key player in energy management and pioneer of the CEE system since 2008.

"It is obvious that the non-enhancement of the CEE market, this private aid scheme which weighs more than 5 billion euros annually, down 25% over 12 months, today has social, economic and environmental repercussions. majors. Its resolution must be one of the priority files of the Prime Minister in charge of ecological planning. The achievement of our national and European objectives, with almost 40% energy savings to be achieved by 2030, depends on it! », argues Pierre Maillard, Chairman and CEO of Hellio.

Transport, industry, the tertiary sector and agriculture the largest consumers of energy ahead of the residential sector

According to the latest energy balance sheet for France in 2021 published in April 2022, France's primary energy consumption in 2021 is up by 7,7% (2 TWh).

For its part, final energy consumption stands at 1 TWh in 778, including 2021 TWh for energy use. The latter increased by 1% and returned to its 627 level.

In detail, transport energy consumption amounts to approximately 511 TWh, or nearly 32% of the total. At the same time, that of industry amounts to 312 TWh, or almost 20%. Added to this is the consumption of tertiary buildings estimated at 275 TWh, or 17%, and that of agriculture and fishing around 50 TWh, or 3%.

In short, the industrial and commercial sectors represent nearly 72% of total consumption!
At the same time, energy-related CO2 emissions rebounded by 8,5% without returning to their 2019 level, with the sectors mentioned above being responsible for almost 90% of the total.

Under-exploitation of CEEs by these sectors aggravated by a market in crisis

Paradoxically for these industrial and commercial sectors, the ESC system, the main instrument of energy policy in terms of encouraging energy efficiency work and reducing energy consumption, represents on average only 33% of ESCs issued since on January 1, 2022, with the same order of magnitude over the last four years. The sector that benefits from the remaining 67% is residential, representing 28% of energy consumption.

Moreover, current events on the ESC market are not encouraging energy efficiency: the price shows a drop in financial incentives of around 30% over the past two years caused by the overproduction of ESCs compared to obligations ^[2] become insufficiently ambitious.

Indeed, the production of CEE breaks all records (with averages of 83 TWhc of CEE issuances and 72 TWhc of CEE deposits at the start of 2022) for a volume obligation for the 5th period criticized for being poorly calibrated ( 43 TWhc including the overproduction of the 4th period estimated at 450 TWhc, 52 TWhc per month excluding overproduction).

This situation of the ESC market has serious consequences, both economically, socially and environmentally:

• A drop in aid and an increase in financial out-of-pocket costs for energy efficiency work for individuals and businesses, in an unprecedented context of soaring energy prices. Several companies postpone, cancel or simply do not plan to launch their energy efficiency projects due to the current low incentive from EWCs.
• A broken confidence in the device by end users who find themselves with a remaining charge doubled or tripled compared to a few months ago and can no longer start their work.
• A lack of ambition which will result in the failure to achieve the French and European objectives in terms of reducing energy consumption while the 2020 objective has been achieved on the wire thanks to, or because of, the health context of 2020. also that the revision of the energy efficiency directive should be enacted by the end of the year, with a probable increase of the current 2030 objective from 32,5% to 36%-39%.

Double the obligation of the volume of ESCs of the 5th period to achieve the objectives

As such, given a current monthly average of 83 TWhc of issuance of CEEs and 450 TWhc of CEE stocks, a total CEE obligation for the 5th period is projected at 4 TWhc, i.e. almost doubling the current objective. .

With the probable increase of 11% of the European objective, today at 32,5% of energy savings ^[3] to be achieved by 2030, the potential obligation could even amount to more than 5 TWhc if the political will were to use the mechanism to achieve the European and national objective.

Several players in the sector have issued a similar recommendation to double or even triple the financial aid dedicated to energy savings. ^[4], as well as the Citizen Climate Convention ^[5] proposed to quadruple the objective (3 to 4 times), which would bring the obligation to more than 6 TWhp.

As a reminder, the flat rates of the standardized operation sheets are regularly revised downwards, taking into account the reassessment of the references of the fleet and the market to better reflect the real energy saving: the amount of financial incentives paid per operation will therefore be limited.

If we wish to reach the objective of 700 renovation works announced by the President during his re-election campaign, an increase in the obligation of the volume of CEEs is essential in order to considerably increase the financial incentives.

The first impact of this necessary increase will be to significantly reduce out-of-pocket costs and thus encourage consumers and players in the sector to carry out energy-saving work.

Beyond the significant additional bond volume, Hellio insists on the importance of increasing both the traditional bond and the precarious bond. Indeed, an increase in the precariousness obligation will make it possible to fight against energy poverty but will not stimulate energy efficiency work in the sectors mentioned above, in particular because of the fungibility of the precarious CEE (a precarious CEE can fulfill the traditional obligation), and will therefore leave aside the industrial and commercial sectors.

[1] https://www.statistiques.developpement-durable.gouv.fr/bilan-energetique-de-la-france-en-2021-donnees-provisoires-0
[2] emmy.fr ; April 2020 CL ​​Emmy Spot Award: 8,46; April 2022 CL sports emmy award: 5,93; 29,9% decrease
[3] https://www.consilium.europa.eu/fr/policies/green-deal/fit-for-55-the-eu-plan-for-a-green-transition/
[4] https://www.fedene.fr/wp-content/uploads/sites/2/2014/09/20171003-PROPOSITIONS-BD.pdf
[5] https://propositions.conventioncitoyennepourleclimat.fr/pdf/rf/ccc-rapport-final-seloger.pdf