French Energy Regulatory Commission report of April 3, 2024 on the analysis of Saint-Martin's draft multiannual energy program (PPE) and its impact on energy public service charges

Since 2007, the island of Saint-Martin (French West Indies) has had the status of an overseas territorial collectivity. The collectivity is therefore not subject to the Energy Code's objectives of a 100% renewable energy mix and energy autonomy by 2030. Following Hurricane Irma and in order to support the reconstruction of the island's infrastructure, a framework agreement was signed with the State on July 8, 2021. This agreement provides for the transposition of certain provisions of the Energy Code, including those relating to the Multiannual Energy Planning (PPE). Among other things, the territory's energy code calls for achieving energy autonomy and an electricity production mix composed of 100% renewable energies by 2030. In a deliberation dated February 12, 2023, the territorial council of Saint-Martin adopted a draft PPE, which it submitted to the government for its opinion. The Directorate General for Energy and Climate (DGEC) has asked the CRE to assess the impact of the objectives set out in the draft PPE on public energy service charges. The DGEC has also asked the CRE to consider the choice of fuel for the future thermal power plant that will replace Unit 1 of the Marigot power plant, which has reached the end of its operating life. The ambitions set out in the PPE have a direct impact on the level of these charges, insofar as a change in the structure of the fleet entails new investments that need to be financed, while continuing to finance previous investments even if they were less used. It also leads to a change in the relative demand for resources and the subsequent evolution of the variable costs to be borne. The purpose of this note is to analyze the draft PPE submitted to CRE, and to assess its impact on energy public service charges. The main recommendations made by CRE in its analysis are summarized