Thursday, 21 January 2021
In France, automaker titan Volkswagen has teamed up with French utility company EDF to provide electric vehicle customers with renewable energy offerings backed by Guarantees of Origin in alignment with 2050 decarbonization goals.
As part of the Volkswagen Group's zero-emission strategy, it is deploying a series of measures facilitating the Paris Agreement and carbon neutrality by 2050 goals. Among these measures is the transition of its product line through a 33 billion euros investment in electromobility by 2024 which will bring about a range of 75 new 100% electric vehicles (EV) to the market by 2029. Additionally, through a partnership with the utility EDF, the automaker will offer EV customers a comprehensive range of services, including green electricity to their homes.
In this partnership, EDF will offer its expertise as an energy supplier and its renewable electricity backed by GO's to offer EV customers a holistic low carbon solution. Volkswagen Group France wanted to collaborate with an energy supplier to offer its customers green electricity backed by GO's to ensure their validity. This could potentially open a new demand base within the GO market in France.
France is currently a net exporter of GO's within the market. In 2020, the country supplied around 78 TWh a 37% increase from the previous year while demand increased by 11% from 2019 to 2020. To obtain a view of the average prices of French GOs we refer you to our GO French Auction price overview for December 2020.
In terms of Renewable Energy (RE) consumption, the French grid has notoriously been dominated by non-renewable fuels, namely nuclear energy. In 2019 total electricity consumption was 477 TWh of which only 18% was renewable. Similar to Germany, the EV industry has boomed in France with a 180% growth in 2020 when compared to 2019, these numbers are quite impressive considering the economic impacts of the pandemic. This clearly shows a huge market appetite not only for EVs but potentially RE as well.
“EDF is convinced that the acceleration of electric mobility requires the mobilization of major players, such as the Volkswagen Group. The complementarity between our two groups, thanks to electricity, low-carbon solutions and innovative services that make it easier for our customers to use the electric car. We welcome this new step in favor of more sustainable mobility." said Olivier Dubois, Director of Strategic Partnerships and Electric Mobility Development for the EDF group.
“We are very happy to have signed this partnership with EDF, which will allow us to ensure a strong customer promise. This partnership negotiated with each brand of the Volkswagen Group France is entering its concrete phase, in the year 2021 marked by the launches of new all-electric models, such as Volkswagen ID.4 or Audi E-tron GT ”, declared Thierry Lespiaucq, Chairman of the Volkswagen Group France Board of Directors.
The race to invest in EV's and renewable energy solutions by Volkswagen comes as no surprise considering the mounting decarbonization pressure on the company. Just recently the automaker was fined €100m for narrowingly missing the strict EU emissions targets in 2020.
French corporations seem to be in full swing in terms of reaching decarbonization goals with previously published Total and Engie having partnered to develop the renewable hydrogen sector in France.
As the EU's 2030 emission targets loom closer, with EU ETS measures getting stricter and carbon prices increasing we expect to see more corporations in full gear moving towards providing low carbon solutions to customers while trying to remain relevant and ahead in a fast-changing market. Market observers will watch in anticipation to see who will be next?
EDF press release (in French)