Side event du Bureau de coordination lors de l'EWEA 2011

ENERGIE ÉOLIENNE
16 MAR 2011 Bruxelles

La loi Grenelle II et la loi des finances pour l'année 2010 ont modifié deux éléments majeurs du cadre législatif
encadrant le développement de l'énergie éolienne en France, à savoir la fiscalité et la planification territoriale de
l'éolien. Face à ce nouveau contexte, le Bureau de coordination a tenu pendant l'EWEA 2011 à Bruxelles le 16
mars un side event intitulé "Fresh wind in the French regulatory framework".
Les présentations de la conférence sont consultables ci-contre. Par ailleurs, une synthèse de la manifestation
reprenant les différentes thématiques abordées est exclusivement disponible pour nos adhérents.

Le side event du Bureau de coordination lors de l’EWEA 2011 a permis de présenter les deux aspects du
nouveau cadre réglementaire sur l’éolien en question mais aussi d'évaluer les implications présentes et/ou futures
pour le développement de l'énergie éolienne et de sa filière en France. L'intérêt des acteurs de la filière pour ces
questions a été confirmé par la forte participation à cet évènement.

PRÉSENTATIONS
Wind energy sector: the regulatory framework after "Grenelle II" Law - Focus on the reform of business
tax

Anne Lapierre
Energy Partner
Norton Rose

The French planning exercise: Regional Wind Plan - perspectives and reality

Fabrice Cassin
Partner
CGR Legal

Picardie: case study of the drawing up of a Regional Wind Plan

Fabien Doisne
Picardie Regional Directorate for Environment
Spatial Planning and Housing
 FINANCIAL INSTITUTIONS ENERGY INFRASTRUCTURE AND COMMODITIES TRANSPORT TECHNOLOGY

Wind energy sector: the regulatory framework

after “Grenelle II” Law

Anne Lapierre – Laurence Toxé

Partners
Energy – Project Finance / Tax
16 March 2011
1
Summary

The business tax (BT): situation from 2003 to 2009

Capped at 3.5 % of the added value

BT on Minimum BT on the
BT on built or added value
equipments and unbuilt properties
movable assets

The reform (the local economic contribution (cotisation économique territoriale (CET))

Business local Business contribution New flat tax applicable

contribution on on added value to network companies
Abolished properties (cotisation (cotisation sur la valeur (imposition forfaitaire
foncière des ajoutée des entreprises sur les entreprises de
entreprises (CFE)) (CVAE)) réseau (IFER))

2
Capped at 3 % of the added value
 Situation following the reform (1/3)
Simulation’s assumptions
Value of a 1 MW wind turbine (excl. taxes)
Turnover generated per MW (excl. taxes)
Added value generated per wind turbine
Wind farm of 12 MW installed capacity
BT rate prior to the reform
Business tax prior to the reform
Annual tax 27,108 Euro including
Cost for the company (with the shield of the added value cap): 4,679 Euro
1,450,000 Euro (allocation: 93 % in movable assets and 7 %
in properties
167,120 Euro (2000 hrs with a feed-in tariff of 83.56 Euro per
hour)
133,696 Euro (80%)
Total turnover: 2,005,440 Euro
28 % (allocation: municipality 15%, department 9%, region
3%, other 1 %)
13,447 Euro for the municipality
8,068 Euro for the department
2,689 Euro for the region
3
 Situation following the reform (2/3)

Business local contribution on properties (CFE)

Tax base:
Assets liable for CFE: 1,450,000 x 7% x 8% x 70% (rebate of 30%) = 5,684 Euro
Assets not liable for CFE: 0

Local Contribution on properties: 24.7 % x 5.684= 1,402 Euro (rate of 28% being the average sum of the
municipal, departmental and regional rates, on which both the 0.84 and 1.0485 ratios are applied; i.e. a
rate of 24.7 %)
Business contribution on added value (CVAE)

Added value capped at 80% of the turnover: 133,696 Euro

Thus, contribution on added value equals 133,696 x 1.5 % = 2,005 Euro
Contribution actually due in light of the turnover of the company: 133,696 * 0.30% = 403 Euro
The rate of 0.3% corresponds to the following computation: 0.3 % = 0.5% * (2,005,440 - 500,000) / 2,
500,000 (for non tax consolidated company)
Tax exemption: 2,005 – (133,696 x 0.30%)= 1,602 Euro (compensated by the State)
Therefore, a contribution on added value amounting to 403 Euro to be paid by the wind farm operator

4
Situation following the reform (3/3)

Added value cap (non applicable): 3 % x 133,696 = 4,010 Euro (> 1,402 + 403)

Flat tax applicable to network companies (IFER) of 7,000 Euro / MW

total tax charge for the wind farm operator: 8,805 Euro (previously 4,679 Euro)

Amount benefitting to the municipality + EPCI* level: 7000 * 70 % + 1,402 + (2,005)*26.5%

IFER CFE CVAE

6,833 Euro (previously 13,447 Euro)

*Établissement public de coopération intercommunale

5
 Impact of the reform on the taxes charged to an
average wind farm operator

Former BT charged to the CET + IFER charged to the CET + IFER charged to the
company company in 2010 company in 2011

Assumptions :
Business Tax
(with ceiling at 3.5% of - the CET rate is set at the sum of the
added value) average former municipal, departmental and
regional rates (28%), multiplied by the 0.881
coefficient (i.e. 24.7 %);
- the flat tax is 2,913 Euro per MW.
Assumptions :
- the CET rate is set at the sum of the
average former municipal, departmental and
regional rates (28%), multiplied by the 0.881
coefficient (i.e. 24.7 %);
- the flat tax is 7,000 Euro per MW.

IFER IFER
Contribution on
Contribution on properties properties
Contribution on
Contribution on added value added value

7,000
2,913

1,402
4,679
403
1,402

4,679 4,718 [+1%]

403 [+88%]
8,805 6
 Impact of the reform on the income collected by the
municipality level (IFER at 2,913 Euro)

BT income previously
collected by the municipality CET + IFER income collected by the municipality level
level (municipality and EPCI*) (municipality and EPCI) according to the allocation used for
*Établissement public de coopération IFER
intercommunale

BT paid by the State through the Assumptions: Assumptions:

added value cap
BT charged to the company
- the flat tax of 2,913 Euro / MW is allocated -the flat tax is 2,913 Euro / MW;
as follows: 50% for the municipality level -it is allocated as follows: 85% for the
(15% for the municipality and 35% for EPCI) municipality level and 15% for the
and 50% for the departmental level. departmental level.

CVAE paid by the State to CVAE paid by the State to

compensate the reduction of the compensate the reduction of the
contribution on added value contribution on added value
CET + IFER charged to the company CET + IFER charged to the company

8,768

425

425

4,679
3,985
2,965

7
13,447 3,390 [-75%] 4,409 [-67%]
 Impact of 2011 Finance Law: IFER at 7,000 Euro
BT income previously
collected by the municipality
level (municipality and EPCI)
BT paid by the State through the
the added value cap
BT charged to the company
8,768
4,679
13,447
Total CET + IFER income
CET + IFER income collected
collected by all administrative
by the municipality level
divisions (municipality level,
(municipality and EPCI)
department and region)
Assumptions:
-the flat tax of 7,000 Euro / MW is
CVAE paid by the State to
allocated as follows: 70% for the
municipality + EPCI level and 30% for the compensate the reduction of the
department. contribution on added value
CVAE paid by the State to
CET + IFER charged to the company
compensate the reduction of the
contribution on added value
CET + IFER charged to the company
1,602
425
8,805
6,409
8
6,833 10,407
[- 49%] [- 23 %]
Conclusions

• How far should we go? Even with an IFER set at 7,000 Euro, the
municipalities, departments and regions are only partially
compensated.

• Coherence issue: all former projects are compensated by the

State, therefore, what is the purpose of IFER’s uniform increase to
7,000 Euro?

9
 Team presentation

Anne Lapierre, Partner Laurence Toxé, Partner

Energy Tax

Tel: +33 (0)1.56.59.52.90 Tel: + 33 (0)1.56.59.53.46

Email: anne.lapierre@nortonrose.com Email : laurence.toxe@nortonrose.com

10
FINANCIAL INSTITUTIONS ENERGY INFRASTRUCTURE AND COMMODITIES TRANSPORT TECHNOLOGY
1
The French planning exercise

Regional Wind Plan

(Schéma régional éolien – SRE)

Perspectives and Reality

Fabrice CASSIN
Member of the Paris Bar
CGR Legal - Partner 2
 Speech Plan
1. Perspectives
1. The objectives of the wind energy sector
2. The French countryside
3. The French choice : Regional wind plan (SRE)
4. Planification of wind energy

2. Reality
1. A perfectible method
2. A stack of rules
3. A late implementation
4. Litigation

3
 PART 1

Perspectives

4
 1. Perspectives
1.1. The objectives of the wind energy sector (1)

Objectives of France

Law n°2005-781 of 13, July 2005 programme setting guidelines for energy
policy
 21% electricity from RE in 2010 (15% in 2000, 13% in 2002, 13% in 2007
according to MEEDDEM statistics)
 10% of RE in the total primary energy consumption in 2010 (8% in 1992, 7%
in 2000, 6.6% in 2007)

Law n°2009-967 of 3, August 2009 Grenelle 1 : share of RE atleast 23% of

final energy consumption in 2020

Law n° 2010-788 of 12, July 2010 Grenelle 2 : Purpose to install 500 machines
each year

Development goals (Multi-annual programming for Investments – PPI – and

National Renewable Energy Action Plan)
 25 000 MW of wind energy in 2020 (19 000 MW onshore ; 6 000 MW offshore)

5
1. Perspectives
1.1. The objectives of the wind energy sector (2)

Very ambitious objectives for the wind sector

• In comparison with the objectives set in the other RE sectors in

2020 : 7,700 MW installed for solar and biomass, +3,000 MW for
hydroelectricity (according to PPI 2009)

• Current figures in the wind sector : 5,573 MW installed in

December 2010

• In consideration of the current growth rate, (+ 950 MW per year

since 2006), the installed capacity could reach 14,000 MW in
2020

 The objectives of the wind sector imply to double the actual

annual growth rate

6
1. Perspectives
1.2. The French countryside (1)

Population density

65 800 000 inhabitants

An average of 97 inhabitants per Km²

A rich agricultural area

France is the leading agricultural country in the EU

Usable agricultural area : ½ hectare per inhabitant

Agriculture represents approximately 53.2% of the land surface

Agricultural development supported by the Common Agricultural Policy
(article 39, Treaty of the functioning of the European union)

7
1. Perspectives
1.2. The French countryside (2)

A rich landscape

Many remarkable landscapes, including coastals, mountains and forests
 Marais Poitevin, Pyrénées, Camargues, …

In 2007, there were 43 233 historic monuments scattered throughout
the territory (Data source : Minister of Culture)

Mont Saint-Michel Fort Saint-André à Villeneuve-lès-

Avignon (Gard)
8 Historic monument & UNESCO world
heritage site Historic monument
1. Perspectives
1.2. The French countryside (3)

A preserved landscape

Protection of all aspects of the French countryside
 Coastal law of January 3, 1986 ; Mountain law of January 9, 1985 ;
Landscape law of Januray 8, 1993, The European Landscape convention
of Jully 29, 2000; Forest Code, UNESCO’s Convention concerning the
Protection of the World Cultural and Natural Heritage of November 16,
1972 ; urban planning rules …

Conciliation of conflicting interests

Planning and landscape protection

Wind turbine and agriculture

…

9
1. Perspectives
1.3. The French choice : Regional wind plan (SRE)

Origin

Law of 2, July 2003 (n° 2003-590) with the purpose of encouraging harmonious
development of wind energy and allowing better distribution of wind farms

Not legally binding for obtaining building permits

Not opposable against the Wind developement area (ZDE)

Regional wind plan and Law Grenelle II

The SRE is part of the Regional plan on climate, air and energy (SRCAE)

It defines areas, that are favorable for developing wind energy, according with the
objectives of EU legislation on energy and climate (article L. 222-1 of the
Environmental code)

Legal binding : ZDE must now be located within territories, wich are classified as
« favorable to develop wind energy », by the SRE (article 10-I, law of Febuary 10,
2000, n°2000-108)

Deadline for publication :
 June 30, 2012
 If not, before 30, September 2012, the local government Authority will
implement a SRE
10
1. Perspectives
Example : extract from the draft of Picardie

- 2,800 MW in 2020
- 70 turbines per year

11
1. Perspectives
1.4. Planification of wind energy

Another planning tool

Wind development area (Zone de développement de l’éolien – ZDE)
 It defines the « ideal » places for the installation of wind turbines and indicates its
scope, the minimum and maximum installed capacity, an assessment of wind
potential, …
 Installations built in ZDE benefit from the « power purchase obligation»
mechanism
 ZDE is based on the following elements : territorial boundaries of the SRE ;
the wind potential ; possibilities of grid connection ; the possibility for future
projects to preserve public safety, landscape, biodiversity, ...

12
 PART 2

Reality

13
2. Reality
2.1. A perfectible method

A non unified methology

Each region uses a different method of elaboration

Each region has its own local politics

A method of exclusion

By taking into account all these local constraints, the areas will be drawn with
remaining local elements, without any consideration with the wind ressource

Local constraints imposed

For example : no implantation within 30 km from a monument (Picardie)

14
2. Reality
Example (1) : extract from the draft of Champagne-Ardenne

15
2. Reality
Example (2) : extract from the draft of Nord-Pas-de-Calais

16
2. Reality
2.2. A stack of rules

The legal framework of turbines installation

The installation of wind turbines is subject to regulation by urban
planning law (Local plan, …)

Wind turbines implantation requires modification of the urban planning
law (procedural delay, …)

Absence of harmonization

Absence of conciliation between urban planning rules and SRE

Lack of clarity

17
2. Reality
2.3. A late implementation

Deadline

Publication of the regional wind documentation before June 30, 2012

If not, before 30, September 2012, the local government Authority will take
a SRE

Time limit and objectives for developing renewable energy

Objectives are set for 2020

Within 7 years: will all these objectives be achieved?

18
2. Reality
2.4. Litigation

Inhabitants and associations

Problem of acceptance of wind farms

Numerous proceedings are filed by neighbours of the wind farm project

Disputes of permits

Impacts

Legal uncertainty on some projects

Delays in project’s completion

19
 Conclusions

Regional wind plan is a good tool but currently remains an

obstacle in the development of wind energy

The feed-in tariffs for purchasing electricity are good

Now, it is necessary to make place to develop wind farms

20
21
Regional wind plan
approach

Fabien DOISNE

Picardy Regional Direction for

Environment, Spatial
planning and Housing

Brussels - 16 March 2011

Direction régionale de l'Environnement, de l'Aménagement et du Logement

Picardie
www.developpement-durable.gouv.fr
 Introduction

The European Union has set targets calling for 20% renewable
energy of the overall energy consumption by 2020.
UE climate and energy package in 2008 = 23% for france

Since 2005, the French state has implemented the programming

law setting guidelines for energy policy.

Target for an annual reduction in energy intensity (units of
energy per unit of GDP) of 2% by 2015, then 2.5% by 2030

The wind plan : a partnership between state and the regional council

21/03/2011 2
 Summary

A new legislation

Areas for the development of wind energy

Potential for development

21/03/2011 3
 A new legislation

National commitment to environment act, 12th July 2010
(« Grenelle II »)


Regional plan of climate, air and energy : single framework

integrating various planning documents that have a strong link with
the energy and climate.

Must be published by the 12th of July 2011

Among them, the regional wind power plan : definition of areas for
the development of wind energy.

21/03/2011 4
 A new legislation

Characteristics of areas for the development of wind energy :

Territorial limitations listed in the scheme

Wind potential

Ease of connection to the electricity grid

Preferential rate for purchase of electricity

Preservation of public security, landscapes, archaeological and
historic heritage, biodiversity and sites of special interest

21/03/2011 5
 A new legislation

To plan the connection to the electricity grid

21/03/2011 6
 A new legislation

If the wind turbine is higher than 50 meters :

classified installartions rules

500 meters between turbines and residential areas

21/03/2011 7
Areas for the development of wind energy
Wind potential

21/03/2011 8
Areas for the development of wind energy
Landscape restrictions
Regulated landscapes

BAIE DE
SOMME

Baie de Somme

21/03/2011 9
Areas for the development of wind energy
Landscape restrictions
Regulated landscapes

BAIE DE
SOMME

PLATEAU
DU VEXIN MASSIF DES
3 FORÊTS

21/03/2011 10
Areas for the development of wind energy
Landscape restrictions
Emblematic landscapes

BAIE DE
SOMME

PLATEAU
DU VEXIN MASSIF DES
3 FORÊTS

21/03/2011 11
Areas for the development of wind energy
Landscape restrictions
Inappropriate areas

Restrained areas
BAIE DE
SOMME

FRANGE LITTORALE

VALLÉE DE LA SOMME

PLATEAU
DU VEXIN MASSIF DES
3 FORÊTS

21/03/2011 12
Areas for the development of wind energy
Architectural heritage

MASSIF DES
3 FORÊTS

Amiens

21/03/2011 13
Areas for the development of wind energy
Architectural heritage
Exclusion zones

Restrained zones

MASSIF DES
3 FORÊTS

21/03/2011 14
Areas for the development of wind energy
Natural heritage

Rale des genets

MASSIF DES
3 FORÊTS

21/03/2011 15
Areas for the development of wind energy
Natural heritage
Exclusion zones

Restrained zones

MASSIF DES
3 FORÊTS

21/03/2011 16
Areas for the development of wind energy
Technical easements and constraints

MASSIF DES
3 FORÊTS

21/03/2011 17
Areas for the development of wind energy
Technical easements and constraints

MASSIF DES
3 FORÊTS

21/03/2011 18
Areas for the development of wind energy
Technical easements and constraints
Exclusion zones

Restrained zones

MASSIF DES
3 FORÊTS

21/03/2011 19
Areas for the development of wind energy
Summary

21/03/2011 20
Areas for the development of wind energy
Strategy

Points,

Structural lines,

21/03/2011 21
Areas for the development of wind energy
Strategy

Densication spots and breaths



21/03/2011 22
Areas for the development of wind energy
Strategy's sum up

21/03/2011 23
Inventory of wind farms and resources in
Picardy

A significant presence of wind energy

405 MW
209 wind-turbines

209 MW
96 wind-turbines

135 MW
62 wind-turbines

21/03/2011 24
 Potential for development

By 2020...
...2010 2013 2020
operating expected target

Cumulated overall power 749 MW 1200 MW 2800 MW

Number of wind turbines 367 580 1100

Number of installations
Minimum of 70 wind turbines / year

Produced power 2010-2020 (MW) Number of wind turbines 2010-2020

3000 2800 1200 1100
2500 1000
2000 800
1500 600
367
1000 749 400
500 200
0 0
Total Picardie Total Picardie
Nombre Nombre
Puissance Puissance
d'éoliennes d'éoliennes
produite (MW) produite (MW)
en 2010 en 2020
2010 2020

21/03/2011 25
 economic development

Today : 7000 people employed in the wind industry in Picardie

By 2020... 16000 jobs expected in the region

130 wind companies in France, 5 are based in Picardy :

… so you are really expected !

21/03/2011 26
 economic development

A national event planed in Amiens for 2011, with the support of the
regional council and the state

A job fair around the wind industry connected to this event

a dedicated training program is provided

in one high-school of Amiens

21/03/2011 27
21/03/2011 28
Our website :
http://www.picardie.developpement-durable.gouv.fr

Contacts :
eclat.dreal-picardie@developpement-durable.gouv.fr
eolien@picardie.fr

Ministère de l'Écologie, du Développement durable,

des Transports et du Logement
www.developpement-durable.gouv.fr