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Summary and extracts
1 Market overview
1.1 Introduction
Geothermal energy is the use of the natural heat of the ground or groundwater as a means of heating or producing energy( mainly electricity). Collectors are buried in the ground and connected to a boiler to generate constant heat for heating a home in winter and cooling it in summer. At a depth of 60 cm, for example, the ground temperature is a constant 14°. There are several different types of geothermal energy: shallow, low-temperature geothermal energy, deep, high-temperature geothermal energy and very deep, high-temperature geothermal energy. There is also high-energy, low-energy and very low-energy geothermal energy.
Geothermal energy accounts for less than 4% of heat production in France and 5% of electricity production. France's potential for geothermal energy production is over 3,000 MW of geothermal electricity, which is a significant figure; 90% of the country could be covered by surface geothermal energy. This market brings together around a hundred companies in France and more than 15,000 jobs in energy companies and geothermal specialists.
Despite tax credits, the geothermal market has been slow to take off in the residential sector (whereas it was booming in the was booming in the 1970s, it came to a halt with the fall in oil prices in the 1980s). Nevertheless, in 2023, the geothermal heat pump market is up 19% in value terms on 2022, and the recovery of the new housing market could boost this market segment over the next few years.
In 2023, against a backdrop of rising electricity and hydrocarbon prices, geothermal energy is becoming an alternative to traditional energy sources, and the government has launched an ambitious plan to promote this still little-known energy source.
1.2 Overview of the global geothermal market
Geothermal energy has been growing steadily since the early ****s. Indeed, geothermal energy production capacity has risen from ** TWh to ** TWh in ****. This segment of renewable energies is set to continue growing in the future: forecasts suggest that production capacity will rise to *** TWh.
Geothermal energy production in the sustainable development ...
1.3 Geothermal energy in France: a high-potential, under-exploited market
In France, only the Bouillante power plant in Guadeloupe produces geothermal electricity on an industrial scale. With a capacity of **.* MWe divided between two units, it produced *** GWh in ****, i.e. *% of the island's electricity production. By ****, Bouillante's electricity production should be increased by **MWe. [***]
Initiated in ****, the Soultz-sous-forêts (***) program ...
1.4 The effect of the COVID-19 pandemic
As the graph below shows, the Covid-** epidemic led to a drop in the sector's sales. This was due to the unprecedented economic slowdown, which led to a drastic drop in electricity consumption in the tertiary and industrial sectors. Industry, particularly manufacturing, saw its consumption fall by almost **%, and by **% for ...
2 Demand analysis
2.1 Trends in electricity consumption in France
The **** Energy and Climate Act sets a target for France of **% of energy produced from renewable sources in gross final energy consumption by ****. By ****, thermal and waste energyproduction will account for **% of total primary energy production, as a result of the investments made to promote its development.
Renewable energy consumption by ...
2.2 Geothermal energy demand in France
Heating networks and all geothermal installations assisted by heat pumps supply around ***,*** housing equivalents, of which ***,*** (***). Thus, residential demand remains an important determinant of geothermal energy demand in France
Focusing on household use of electricity in a residential context, it appears that heating accounts for the majority of electricity expenditure. In ...
2.3 Heat pump market drives demand for geothermal energy
The heat pump market in France is enjoying strong growth.In ****, the geothermal heat pump market was up **% in value terms on **** , while sales of air-to-water heat pumps reached a new all-time high in ****, up **% on ****.
Overall, the market is set for very strong growth between now and ****: heat pump use ...
3 Market structure
3.1 The electricity value chain: generation, supply, transmission and distribution
On the electricity market, we can distinguish four types of player, depending on the major stages in the organization of the sector:
Electricity producers: they operate nuclear or conventional thermal power plants (***) to create electricity. Electricity suppliers: they buy electricity from producers and sell it to consumers Transmission System Operators (***): ensure ...
3.2 Energy producers and suppliers in France
Since the French electricity and natural gas markets were fully opened up to competition on July *, ****, consumers have been free to choose their energy supplier.
Following this opening, non-incumbent suppliers, known as alternative suppliers, have entered the retail electricity market, and consumers can choose between two types of offers:
market offers, ...
3.3 The role of geothermal energy in France's energy transition
In mainland France, the potential of geothermal energy for power generation has yet to be fully exploited. The Soultz-sous-Forêts project uses Enhanced Geothermal System (***) technology, which involves heating water to nearly ***°C by injecting it deep into hot rock. When the water returns to the surface in gaseous form, it ...
4 Offer analysis
4.1 Geothermal energy supply
Geothermal energy supply typology
*. Shallow geothermal energy (***)
From just a few meters below the surface, the Earth's temperature is constant all year round. This individual form of geothermal energy draws energy from the subsoil using one (***) vertical probes, generally at a depth of between *** and *** meters. At this depth, the ...
4.2 Geothermal energy price trends in France
The cost of deploying a geothermal company varies according to the type of installation. Almost half the start-up costs are for equipment. As for the cost of a geothermal heat pump, the majority of the price comes from the manufacturing phase.
It should be borne in mind that acquisition and preparation ...
5 Regulations
5.1 Regulatory framework
A number of often outdated regulations governing energy in France hinder the development of renewable energies. In fact, France has regulatory texts that have enabled the development of technologies that were sometimes non-existent at the time they were drafted; the geothermal sector is no exception to this rule. In terms of ...
5.2 Grants and subsidies: the government's geothermal action plan for 2023
Energy efficiency plan
In October ****, the Energy Sobriety Plan was presented in the context of the current energy crisis. The aim is to reduce overall consumption by **% by **** and by **% by ****.
The main measures are as follows:
Households that reduce their energy consumption will be entitled to a on their gas ...
6 Positioning the players
6.1 Segmentation
- BDR Thermea (De Dietrich, Remea, Baxi)
- Engie
- Tryba Energies (Groupe Tryba)
- Euro énergies (Poujoulat Groupe)
- TLS Geothermics
- Gaz de Ferme
- Total Energies
List of charts presented in this market study
- Geothermal energy production in the sustainable development scenario,
- Main countries producing geothermal electricity
- Sales by renewable heat sector
- Primary production of geothermal energy
- Renewable energy consumption by sector
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Latest news
Engie accelerates battery development in the United States - 25/09/2024
- 1. Storage capacity added by Engie in the U.S. since January: 1 gigawatt (GW), bringing total U.S. installations to 1.8 GW.
- 2. Total capacity of Engie installations worldwide: 2.3 GW.
- 3. Engie's renewable generation capacity in the U.S.: 6 GW.
- 4. Percentage of flexibility required*: 20 to 30% for 100 megawatts of installed generation capacity.
Casino and Total Energies renew their contract for more than 1,000 service stations in France - 26/07/2024
- Renewal of the supply contract between Casino and TotalEnergies for more than 1,000 service stations in France.
- - Duration of partnership: 5 years, from October 1, 2024.
- - Casino present in nearly 140 Total service stations on freeways.
- - Carrefour plans to have 350 stations by 2024.
- - Leclerc has 23 freeway service areas.
- - Carrefour has won two tenders with Shell and TotalEnergies to supply 117 additional stores.
TotalEnergies and SSE to launch an electric vehicle charging company in the UK and Ireland - 16/07/2024
- - Joint venture name: Source
- - Joint venture partners: TotalEnergies (France) and SSE (Scottish & Southern Energy, UK)
- - Objective: To achieve a 20% share of the fast-charging market for electric vehicles in Great Britain and Ireland
- - Number of fast-charging stations to be deployed over the next ( years: 3,000 stations
- - 150-kilowatt (kW) DC-powered fast-charging stations
- - Full recharge time: Between 30 minutes and one hour
- - Cost of kiosk deployment: Approx. 300 million euros
- - renewable energy, supplied by TotalEnergies and SSE
Engie persuades BASF to acquire biogas for the long term - 05/07/2024
- Biogas contract duration: 7 years
- Delivery location: Ludwigshafen in Germany and Antwerp in Belgium
- - Biomethane use: Replacement of fossil gas in various production processes (automotive industry, packaging, detergents, textiles, etc.)
- - biomethane is almost three times more expensive than fossil gas
- - Number of similar contracts signed by Engie: 5, including one with chemical company Arkema
Engie launches Dutch biomethane production - 16/04/2024
**Engie's target for 2030**: to reach a biomethane production capacity of 10 TWh.
**Engie's current production capacity**: over 1 TWh
**Capacity of new units in the Netherlands**:- **Hardenberg**: 90 GWh, with possible extension to 140 GWh. - **Alkmaar**: 47 GWh, with potential to double capacity.
**Engie investment by 2030**: 3 billion euros in biogas
**Biomethane prices**: - In the Netherlands: between €90 and €105 per MWh. - In France: around €110 per MWh.
**Distribution of Engie capacity by country**: - Netherlands: 137 GWh. - United Kingdom: 217 GWh. - France: approx. 0.7 TWh.
Service stations: TotalEnergies finalizes agreement with Couche-Tard - 04/01/2024
- Sale of service stations by TotalEnergies to the Couche-Tard group: 3.4 billion euros
- Total number of retail sites acquired by the Quebec group: 2,175
- In Germany: 1,191 -
- Belgium: 562
- Netherlands: 378 -
- Luxembourg: 44
- TotalEnergies will retain 40% of the assets in Belgium and Luxembourg, which will be managed as a joint venture
- TotalEnergies will supply these service stations for at least 5 years
- The Canadian retail, food and fuel group Couche-Tard operates over 16,700 stores in 29 countries and employs over 150,000 people worldwide
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the geothermal market | France
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