Renewable Energies in Germany

Meike Wächter, energiewaechter GmbH Consultant to the Initiative “renewables – made in Germany” of the German Federal Ministry for Economic Affairs and Energy (BMWi) www.renewables-made-in-germany.com

Content  Political background and framework for RE development in Germany  RE Market development in Germany  Economic effects and public opinion  The Initiative Renewables – Made in Germany and the participating German companies

Political background and framework for RE development in Germany

www.renewables-made-in-germany.com

Germany‘s „Energiewende“ („Energy Turnaround“) in 2011 • Already after Chernobyl (1986) and even before many Germans called for a phase out of nuclear energy use • Finally the Catastrophe in Fukushima led to Germany’s energy turnaround by cabinet decision in June 2011: • Nuclear power use phase out until 2022: • •

Deactivation of eight nuclear power plants in 2011 Nine power plants remaining that will be switched off until 2022

Source: Federal Office for Radiation Protection (BfS), 2011

„Energiewende“: Goals until 2050 CO2-Emissions

Renewable Energies

Energy Consumption 60%

100%

100% 80%

60%

50% 18% 20%

1990

2020

Source: adapted from BMWi

2050

10%

1990

2020

2050

2008

2020

2050

„Energiewende“: Action plan Energy policy for growth and wealth

Overall concept Goals

Dimensions

Secure, affordable and environmentally friendly energy supply

Grid

Power Plants

RE

EnEff

Research

Federal, state, local authorities & EU: Framework

Actors

Economy / Companies: Private Investments, Business Segments Public / Citizens: Acceptance, Contribution, Investments

Monitoring Source: adapted from BMWi

Annual Report & every three years Progress Report

„Energiewende“: Challenges 

Research & Development for energy storage solutions

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Rising costs through the EEG (Act on Granting Priority to Renewable Energy Sources)

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Intensify energy saving and efficiency efforts

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Speed-up grid expansion (major problem: transport e.g. offshore wind power from the north to industrial areas in the south)

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Colliding interests of the Federal Government and states (e.g. regarding the grid expansion)

Source: German Federal Ministry for Economic Affairs and Energy (BMWi): Germany’s new energy policy, 2012

„Energiewende“: Current developments  Energy policy allocated to the Ministry of Economics and Energy since 12/2013  Stick to nuclear power phase-out by 2022  Plan to rapidly reform the Act on Granting Priority to Renewable Energy Sources (EEG) incl. caps and cuts of RE subsidies  Continuation of pilot projects in the field of new energy storage technologies: e.g. Power to Gas  Further market integration of RE: Subsidies seen as impetus only

Renewable Energy Promotion in Germany

www.renewables-made-in-germany.com

Act on Granting Priority to Renewable Energy Sources (EEG) 

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Grid operators are obliged to connect RE systems to the grid and to buy the electricity from the system operators to set prices Fixed Feed-In tariffs (FITs) for 20 years guaranteed by law for RE system operators Tariffs vary depending on the utilized source, e.g. biomass, PV, Wind etc. FITs financed by consumers: reallocation charge of currently 6,24 €-cent per kWh consumed Companies with a high energy demand are excempted from the reallocation charge in order to sustain their competitiveness on the world market (consistent public debate on that issue)

Share of the EEG in the electricity bills The increasing reallocation charge can not fully explain the rising electricity prices: Reallocation charge (green) and other electricity costs (blue) in €-cents per kWh

Source: Renewable Energies Agency, Berlin

Share of RE in Total Final Energy Consumption 2012

Source: Development of renewable energy sources in Germany 2011 provided by BMWi

Share of RE in energy consumption Electricity: 1st Quarter 2014: about 27%

Electricity Final energy consumption Heat Fuels

Source: Renewable Energies Agency, Berlin

Energy use in Germany: Principally in the heating sector

Main Instruments to Promote RE in the HEATING sector  Renewable Energies Heat Act (EEWärmeG) since 2009: Minimum share of heating energy supply from REs for new buildings usually obligatory Obligations depending on the technology/ies used (e.g. biomass and heat pumps: 50%, solar thermal 15%)  Market Incentive Program for Renewable Energies (Marktanreizprogramm / Federal Environment Ministry, (BMU): Financial contributions / beneficial loans for certain REs investments, Low temperature solar thermal systems planned to reach a tenfold of the installed capacity until 2020  Loans by KfW Bankengruppe (KfW Group) - National business development bank: subsidised loans for energy-efficient housing and RES

Structure of RE-based heat supply in Germany 2012

Benefits of RE promotion in Germany www.renewables-made-in-germany.com

Local Value Added within the Energy Economy: Employment

Owners/investors of RE

Credits: Renewable Energies Agency, Berlin

Public opinion

Credits: Renewable Energies Agency, Berlin

Résumé  Implementation of EEG has been a success story  First step to achieve a clean, promising and sustainable energy supply – in many cases already competitive with conventional technologies  A first step to energy economic self-sufficiency and independency from fossil fuel imports: Reduced money burned  EEG a German export hit: at least 65 countries have been implementing similar legislations  EEG a “learning system” that has the capability to adapt to future developments (technological progress etc.) and to lead innovative technologies to competitiveness

Résumé  EEG not necessarily a cost factor. Promotion of RE is a cheap future investment compared to long-term costs of conventional energy sources: GHG-emissions, climate change, environmental pollution, destruction of landscapes, disposal of nuclear waste for thousands of years etc.  Energiewende and EEG have the backing of the German population. Even though details have to be discussed continuously  Creation of a new and sustainable economic branch, providing qualified jobs and local added value  Development of a market with an abundance of innovative and experienced enterprises, as you will see today 

The Initiative „Renewables – Made in Germany“ and the participating German companies www.renewables-made-in-germany.com

The Initiative on the web www.renewables-made-in-germany.com 

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Info on upcoming events: Business trips, trade fairs, information trips for foreign decision makers to Germany Information on German companies and institutions Information on actual market developments

www.renewablesb2b.com  Virtual Market Place; B2B platform

Participating German companies Company

Representative

Business segment

SUNSET Energietechnik GmbH

Mr. Dominik Hammer

On- and off-grid solar energy solutions

IBC Solar AG

Mr. Alberto Moreta

Wholesaler for PV components, system integrator

EJOT Baubefestigungen GmbH

Mr. Marco Alexander Caiza Andresen

Production of fastening material for renewable energy equipment

Viessmann Werke Gmbh Ms. Julie Mazaud & Co. KG

Production of solar thermal and PV systems

Participating German companies Company

Representative

Business segment

Rolf Disch SolarArchitektur

Mr. Tobias Bube

Architecture specialized in solar technologies

Cleanplant

Mr. Martin Sabbione

Projects for decentralized energy supply

solarnova Deutschland GmbH

Mr. Bernd Woderich

Design, planning and production of buildingintegrated PV systems

Thank you for your attention.

Contact: Meike Wächter, energiewaechter GmbH E-Mail: [email protected]