Energy sufficiency plan: leveraging actionable strategies for long-term crisis management
It's official, on October 6th, the government presented its energy sufficiency plan to address the energy crisis. But what can we expect? This plan, which aims to reduce energy consumption by 10%, is necessary to avoid a winter of rationing.
Consequences of dependence on fossil fuels
It is undeniable that the current crisis could have been avoided and anticipated, but the Ukrainian conflict has prompted France's energy transition.
Indeed, since the start of the war in Ukraine, supplies have been at their lowest while economic activity remains dynamic. Moreover, after reaching the peak of oil production in 2019, the unavailability of Russian gas is just one stage in a much longer obstacle course: experts agree that available deposits will decrease by 10% per decade. This means that the rate of 100 million barrels extracted per day will be reduced to at most 50 million by 2050. Starting from 2022, demand must adapt to supply, and not the other way around.
As a result, achieving the energy saving objectives will necessarily require decarbonization and the substitution of fossil fuels with low-carbon electricity.
What are the risks for the industry?
Some companies in various industrial sectors have already included actions to reduce their energy consumption in their long-term investment plans even before the crisis.
It seems challenging to reach the 10% target without any constraints, especially considering that the reduction in activity due to COVID-19 constraints has only resulted in a 17% reduction.
Stakeholders in the food industry are increasingly concerned about maintaining their production, as confirmed by a press release from the National Association of the Food Industry (ANIA).
With energy prices soaring, pressure from mass distribution, and a sufficiency plan to adhere to, many companies are struggling.
Act, reduce and plan
Faced with the threat of soaring prices and rationing of electricity and gas on one hand, and the threat of climate change on the other hand:
- Reduce energy consumption without delay through concrete measures.
2. Regain energy sovereignty by improving energy performance and transitioning to self-generation of renewable energy.
In the meantime, the government is setting up subsidies for companies whose gas and electricity expenses exceed 3% of their turnover and who experience a doubling of gas and/or electricity prices by 2021. Applications for the periods from March to August can be submitted until December 2022.