Grid operators predict a 20% drop in French gas consumption by 2030

French grid operators announced on Thursday that the consumption of gas in France will drop by nearly 20% by 2030, as a result of changes made to meet climate targets and to reduce costs.

France is Europe's biggest energy consumer and its gas consumption has a significant impact on the region's trade and price flows.

GRDF GRTgaz Terega conducted a study that forecasts 2030 consumption of 321 terawatt hours (TWh), 78 TWh less than in 2023. Recent efficiency gains and cost saving initiatives have led to fewer demand reductions.

The study found that the recent significant drop in electricity demand caused by the rising cost of energy will rebound over the next 10 years. However, the impact on gas demand is offset by energy efficiency improvements and the switch to alternative power sources.

The study said that biomethane is expected to supply around 60 TWh of gas by 2030, and double this by 2035.

Currently, the high price of renewable gas limits demand.

The study also noted that the need for gas would be heavily dependent on the availability and deployment of renewable energies in France and neighboring countries.

The study did not include the growing volumes of hydrogen that will be consumed by industry. (Reporting and editing by Jason Neely, Mark Potter and Mark Potter; Forrest Crellin and Benjamin Mallet)

(source: Reuters)