Circular Economy for the Energy System as a Leverage for Low-Carbon Transition: Long-Term Analysis of the Case of the South-East Region of France

The circular economy is a decisive strategy for reconciling economic development and the environment. In France, the CE was introduced into the law in 2015 with the objective of closing the loop. The legislation also delegates energy policy towards the French regions by granting them the jurisdiction to directly plan the energy–climate issues on their territory and to develop local energy resources. Thereby, the SUD PACA region has redefined its objectives and targeted carbon neutrality and the transition to a CE by 2050. To study this transition, we developed a TIMES_PACA optimization model. The results show that following a CE perspective to develop a local energy system could contribute to reducing CO₂ emissions by 50% in final energy consumption and reaching almost free electricity production. To obtain greater reductions, the development of the regional energy systems should follow a careful policy design favoring the transition to low energy-consuming behavior and the strategical allocation of resources across the different sectors. Biomethane should be allocated to the buildings and industrial sector, while hydrogen should be deployed for buses and freight transport vehicles.