Reflets Magazine #152 | Marc Benayoun (E89), Executive Director of the EDF Group

Featured on the cover of the next issue of Reflets Mag is Marc Benayoun (E89), executive director of the EDF Group responsible for the Customers & Energy Services division, which helps 26 million individuals, businesses and local communities reduce their bills and carbon footprint. Up for discussion: the energy transition, the future of French nuclear energy and electricity market reform. Here is a free online translation of an excerpt of the article… subscribe to get the next issues (in French)!

Reflets Magazine: After you left ESSEC and following a stint at BNP, you changed track towards the energy sector and joined the Boston Consulting Group. Can you tell us a little about this initial international experience?

Marc Benayoun: I learned such a lot during those 15 years at BCG. It was a wonderful experience but when you're a consultant, there comes a time when you want to strike out on your own. We spend our time deciphering economic and business mechanisms to advise clients on how to improve, until, one day, you wonder: “What if I were to take the reins myself?” Having worked extensively in the energy sector, I went to see the then president of EDF, Pierre Gadonneix, with whom I had worked. He introduced me to the company's senior executives, and they made me a very interesting offer. It was as simple as that. 

RM: You've been Group Executive Director for five years now, overseeing the Customers & Energy Services division. What exactly does your division do?

M. Benayoun: Our division handles EDF's offerings across all customer categories, from individuals to major corporations, encompassing electricity and gas supply, as well as services primarily aimed at helping customers reduce their energy consumption. That may seem counterintuitive, as industries typically strive to increase sales, but electrification and new forms of use result in overall growth in demand for electricity. In this energy transition, helping our customers consume smarter is therefore in their interest as well as ours. Our range of services also meets our customers’ needs in terms of reducing their carbon footprint by offering different solutions tailored to individuals and businesses.

RM: What are the key challenges on the horizon for EDF and what major initiatives has your Group undertaken to support the energy transition?

M. Benayoun: We inadvertently launched one of the most significant initiatives vis-à-vis energy transition in the early 1970s, in the form of the French nuclear programme. It was initially developed with a view to achieving energy independence and controlling costs during the oil crisis. The programme's other virtue, that nuclear power doesn’t produce carbon dioxide, only became apparent over time. We’re therefore fortunate to have an energy mix that is naturally low in carbon and, at the same time, controllable. In other words, we have both renewable energies, such as hydro and wind, coupled with nuclear, which can be controlled to enable us to manage production times and meet demand. The energy produced in France by EDF generates minimal CO₂ emissions, which is a considerable advantage for our country, as it adds to the value of electricity as a replacement for other energies. For example, talking about electric mobility in a country where electricity is produced by coal-fired plants is simply displacing the problem rather than solving it. In France, on the other hand, by changing from a petrol vehicle to an electric one, or replacing a gas-fired boiler with an electric heat pump, there are measurable gains, which is one of France's great features.  One of the challenges for us is to drive the deployment of electricity across all sectors of the economy, while reducing the country’s carbon footprint. Another one is to maintain our nuclear facilities by gradually replacing those plants that are approaching the end of their service life. To this end, we're planning substantial investment of more than €50 million to extend the lifespan of our existing nuclear facilities. 

RM: Will the current power plants pose risks over time?

M. Benayoun: France's nuclear plants are in excellent condition and are monitored by two safety authorities after each shutdown for maintenance or fuel replacement. Because they are now getting on in years, maintenance shutdowns are required more frequently, but safety standards remain high – the safety authorities are uncompromising on this, and rightly so. Ageing doesn’t imply more risks, just a little less availability.

RM: What should nuclear’s rightful place be in the energy mix in France?

M. Benayoun: The law specifies the reduction of the current coverage rate of slightly more than 70% to 50%, to allow for the development of renewable energies, which are now economically viable. This 50/50 balance will effectively accommodate fluctuations in renewables production. There’s no magic figure, however; the key thing is to have sufficient nuclear capacity to meet demand. The idea is to embrace and prioritise investment in wind and solar, particularly offshore wind, which offers a great opportunity for France, with its extensive coastline that is windy enough to produce very high load rates – practically double those that can be produced by onshore wind farms. There is therefore potential to develop a whole industry that can produce electricity profitably to cover new needs.

RM: What is the future for nuclear power in global electricity production?

M. Benayoun: The share of worldwide electricity needs to be covered by nuclear has declined substantially in the last 20 years or so to around 11% from historically higher levels of around 15% or 16%. While a great deal of nuclear electricity is still being produced around the world, it has fallen steadily in terms of share. However, major nuclear programmes in numerous countries, particularly China and India, both of which are investing massively in this technology, mean this share should start going back up relatively soon, although achieving a 50/50 nuclear-renewable balance seems unlikely, given the financial, technological and safety constraints in many countries.

RM: Does EDF have a presence in India and China?

M. Benayoun: Yes, we've invested in two EPRs in China, which are now operational in the Taishan plant near Shenzhen, in the south-east of the country. We've also been involved for some years now in a major tender to build new plants in India, although this is not yet a key activity for EDF, owing to the lengthy early-stage process.

RM: Will EDF be able to meet growing electricity demand?

M. Benayoun: [Article continues in Reflets Magazine #152]

Interview by François de Guillebon, Chief Editor at Reflets Magazine, and Michel Zerr, Reporter for Reflets Magazine 

Translation of an excerpt of an article published in Reflets Magazine #152. Read a preview. Get the next issues  (in French).