THE ROLE OF GAS IN
THE DECARBONIZATION
OF THE ENERGY SECTOR
A need for supply security:
The Group’s gas-fired energy
production assets (combined
cycle gas turbines, or CCGTs)
are essential today to the
security and balance of the
energy systems of which
they are part. In 2022, for
example, gas assets played a
central role in the balance of
the French electrical power
system when there was
strong pressure on supply.
Needs for balance
and flexibility:
In an electricity mix
dominated by intermittent
renewable energy, the need
for flexibility solutions to
ensure the balance of the
energy system will increase
significantly (fourfold
increase in 2035 according
to the IEA in its Net Zero
Emissions scenario).
In the medium-term, only
thermal assets can provide
this flexibility on an intra-
weekly and inter-seasonal
basis.
Decarbonization of gas
assets in the long term:
Over the long-term, the
fleet of thermal assets will
progressively decline (end of
life of power plants, partially
replaced by renewable
production), but the
remaining assets will stay
to help balance the system
peak assets
In addition biomethane
and renewable hydrogen
will contribute to the
decarbonization of gasfired
thermal plants by 20402045
THE TRAJECTORY SELECTED
Already certified for a 2°C trajectory by the
SBTi since 2020, ENGIE earned
its new well-below 2°C certification early in 2023 with new targets for 2030
(see p. 79). ENGIE committed to reduce the carbon intensity related to energy
generation and consumption (scope 1 and 2) that goes beyond the SBTi
requirements with a commitment of -66% over the period from 2017-2030
instead of the -55% required by the SBTi.
Projections for use of gas-fired thermal power plants do not currently allow ENGIE
to commit to a trajectory of 1.5°C, which would require a 78% reduction in carbon
intensity over the same period. Such a reduction could not be achieved without
the disposal of assets. These assets could not be closed Indeed, these thermal
assets could not be closed otherwise the security of the electrical system to which
they are connected would be jeopardized They would thus continue to emit GHG
emissions ENGIE is therefore playing its role as an industrial company engaged in the
energy transition remaining at this stage a key player in thermal generation resolutely
committed to decarbonizing these assets with different technologies biomethane
carbon capture and depending on technological developments renewable hydrogen
To fully industrialize these technologies despite promising changes in the regulatory
framework particularly in the EU we believe that the credible horizon is 20402045
1
3
2
THE MOST AFFORDABLE TECHNOLOGIES
TO MEET FLEXIBILITY NEEDS
Battery storage
for flexibility needs
in the very
short term
WEEKS HOURS DAYS SEASONAL
Pumped storage and
dams for intra-daily
flexibility needs
CCGTs
(1)
for short- and
long-term flexibility
needs
Gas storage for seasonal
flexibility needs
(1) Combined cycle gas turbines
2023 INTEGRATED REPORT - 67