Renewables – Energies of the Future

The German Example
Detlef Loy
on behalf of

Berliner Energieagentur GmbH
Renewable Energy Asia
Bangkok, June 05, 2008

Contents

¾ European and German Framework
¾ German RES-Policy
• RES-Targets and current Situation
• Measures and Programs
• The Renewable Energy Sources Act (EEG)
• Achievements
¾ Outlook
¾ Summary

Picture: BMWi

Germany – in the Heart of Europe

¾ Area: 357,031 km²
¾ Inhabitants: 82.4 Mill.
¾ Gross National Income:
2,423 billion EUR (2007)
¾ Currency: 1 EUR = 51 THB
Source Map: MYGEO

European Energy Policy
Targets for 2020

Climate Protection
Security of Energy Supply
Finite fossil-fuel Resources
Cost Increase
Import Dependency

-20%
Total Primary Energy Supply
Emissions

20%
RES share of Final Energy Consumption
(incl. 10% Biofuels)

-20%
GHG
against 1990, minimum

German Energy Policy Triangle

1. Sustainable

Temperature anormaly (°C)
Temperature anomaly (°C)

0.6
0.6
0.4
0.4

Global air
Global
air temperature
temperature
2007 abnormally
anomaly +0.40°C
2007
+0.40°C
(8th
onrecord)
record)
(8th warmest
warmest on

0.2
0.2
−0.0
0.0
−0.2
-0.2
−0.4
-0.4
−0.6
-0.6

1860
1860

1880
1880

1900
1900

1920
1920

1940
1940

1960
1960

1980
1980

Source: Climatic Research Unit UEA Norwich, 2008

2000
2000

German Energy Policy Triangle

2. Economic
Development of price indices

Light fuel oil

180

Natural gas
Electricity

Index Jan 2003 = 100

160

¾Fuel oil:

Wood pellets

Trend + 19% p.a.

¾Natural gas:
140

Trend + 11% p.a.

¾Electricity:
120

Trend + 5% p.a.

¾Wood pellets
Trend + 3% p.a.

100

Jan 03

Jun 03

Jan 04

Jun 04

Jan 05

Jun 05

Jan 06

Jun 06

Dez 06

Source: DENA, Germa Energy Agency, Statistisches Bundesamt, 2006

German Energy Policy Triangle

3. Security of Energy Supply

High Dependence on Energy Imports: 74.5 % in total
66 % Hard Coal
84 % Natural Gas
96 % Petroleum
100 % Uranium

Promotion of renewable energy sources and energy efficiency
is one pillar of the German energy policy

German RES-Policy

Main measures so far

¾ Renewable Energy Feed-in Tariff System (EEG):
RES power
¾ Market Incentives Programme:
grants and loans for RES heat
¾ Research and Development Support
¾ Tax incentives (partly for biofuels)

German RES-Policy

Integrated Climate and Energy Program
¾ Power: Reform / extension of the feed-in legislation
¾ Gas: Share of bio-methane in natural gas grid 10 % by 2030
¾ Heat:
• Improvement of market incentives program: stable & transparent
• Renewable heat law in progress: quotas & rules
• Share in RES heat production 14% by 2020
¾ Transport: Introduction of sustainability criteria for biofuels
¾ In line with various measures to improve energy efficiency
• Support of high efficiency cogeneration; share raised from 12% to
25% by 2020
• CO2 reduction in the transport sector etc.
Source: Integriertes Energie- und klimaschutzprogramm der Bundesregierung, 05.12.07

German RES-Policy

2010 targets…
... already reached up-front
Share of RES

2000

2007

Target year
2010

Primary energy consumption (DE)

2.6 %

6.7 %

4.2 %

Electricity supply (EU Directive: 22 %)

6.3 %

14.2 %

12.5 %

Transport fuel (EU Directive)

0.4 %

6.9 %

5.75 %

German RES-Policy

Development of RES Share of Total Primary Energy Consumption
8,00%
6.70%

7,00%
6,00%
5,00%
4,00%
3,00%
2,10%

2,00%
1,00%
0,00%
1998

1999

2000

2001

2002

2003

2004

2005

2006

2007
Source: BMU

German RES-Policy

Total Primary Energy Consumption by different Energy Sources
Oil
34%

Total: 13,878 PJ in 2007

Hydropower: 0.5%
Wind energy: 1.0%
Gas
22%

share RE
6.7%

Lignite
12%
Hard Coal
14%

Nuclear
11%

1)

Source: BMU according to Working Group on Renewable
Energies / Statistics (AGEE-Stat); using data from Working Group on Energy Balances (AGEB); physical energy content method.

Biomass: 4.9%

2)

Other RE: 0.3%

German RES-Policy

Composition of RES Share in the German Energy Mix (2007)
18%
Wind
Power
38%

Bioenergy
(Heat)
9%

Hydro
Power

Geothermal
energy; 1%

Biofuels

Bioenergy
(Power)

Solarthermal
energy; 2%
11%

20%

Photovoltaic;
2%

Source: BMU

German RES-Policy:
Renewable Energy Sources Act (EEG)
Development of RES Share of Total Gross Power Consumption
16,00%

14.2%
14,00%
12,00%
10,00%
8,00%
6,00%

4,70%

4,00%
2,00%
0,00%
1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Source: BMU

German RES-Policy:
Renewable Energy Sources Act (EEG)
Contribution of renewable energy sourced electricity generation
in Germany 1990 - 2007
100,000
90,000

Hydropower

Wind energy

Biomass*

Photovoltaics

80,000
70,000

[GWh]

60,000
50,000
40,000
30,000

New EEG
1. August 2004

EEG
1. April 2000
StrEG
1. January 1991

20,000
10,000
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
* solid, liquid, gaseous biomass, biogenic share of waste, landf ill and sewage gas;
Electricity from geothermal energy is not presented due to the low volumes of electricity
Source: Source: BM U according to Working Group on Renewable Energies / St atistics (AGEE-Stat)

German RES-Policy:
Renewable Energy Sources Act (EEG)
Power Generation from RES in 2007

Hydropower
23.7%

Wind energy
45.1%

Landfill gas
1.2%
Sewage gas
1.2%

Biogas
8.5%
Liquid Biofuels
3.0%

Solid Biofuels
8.4%
Bio-waste
4.9%

Version: March 2008; all figures provisional
Source: BMU according to Working Group on Renewable Energies / Statistics (AGEE-Stat)

Photovoltaics
4.0%

Total Biomass: approx. 25%
(excluding Landfill and sewage gas)

German RES-Policy:
Renewable Energy Sources Act (EEG)
Main Features

¾ Priority for grid connection, purchase and transmission of
electricity from renewable energies
¾ Consistent fee (“tariff”) paid per kWh by the grid operators for
this electricity
- Long-term perspective and investment security (15–30 years)
- Incentive for opening up new potentials and technologies
¾ Strong incentive for efficiency boost
- Tariffs differentiated by source and size of the plant
- Annual degression rates taking into account technical
development
¾ Nationwide equalization between all grid operators and
electricity suppliers for fees paid

German RES-Policy:
Renewable Energy Sources Act (EEG)
Feed-in Tariff for plants commissioned in 2007

Small Hydro Power
Biomass
Geothermal
Wind onshore
Wind offshore
PV

Cents/kWh
6.65 - 9.67
8.03 - 21.14
7.16 - 15.00
5.18 - 8.19
6.19 - 9.10
37.95 - 54.21

Source: BMU: Erneuerbare Energien in Zahlen, 2007, EEG

Duration (a) Degression
30
20
1.5%
20
1% from 2010
20
2%
20
2% from 2008
20
5%

German RES-Policy:
Renewable Energy Sources Act (EEG)
Equalisation of Feed-in Tariff

4 Transmission Grid
Operators

Ca. 900 Distribution
Grid Operators

RES-Electricity

Ca. 900 Supply
Companies

Payment

Renewable
Power Plants

Consumers

German RES-Policy:
Renewable Energy Sources Act (EEG)

Government
Feed in tariff...

... PV on Buildings 2008

§

< 30kWp

46.8 €ct

30 – 100 kWp

44.5 €ct

> 100 kWp

44.0 €ct

Ground mounted
Facade

35.7 €ct
+ 5.0 €ct


Consumer

Energy Supplier
Source: Solar Energy in Germany

German RES-Policy:
Renewable Energy Sources Act (EEG)
Components of Electricity Price, 2006, Private Households

19.5 EUR-Cent/ kWh
Grid cost
36%

Cogeneration fee
2%
Concession fee
9%
EEG levy
4%

Electricity tax
10%

Electricity
generation and
sale
25%

VAT
14%

Source: BMU

German RES-Policy:
Market Incentives Programme

Solar Collectors

Pictures: TU Ilmenau, BMU /Bernd Müller

Biomass Boilers

German RES-Policy:
Market Incentives Programme
Development of RES Share of Total Heat Consumption
7,00%

6.60%

6,00%

5,00%

4,00%

3,50%

3,00%

2,00%

1,00%

0,00%

Source: BMU/BEE

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

German RES-Policy:
Market Incentives Programme
Heat Supply from RES in Germany
Total: 90.2 TWh in 2007

Solid biofuels
(households)
64.1%

Near-surface
geothermal energy
2.4%
Deep geothermal
energy
0.2%
Solar thermal
energy
4.1%
bio-waste
5.4%

Solid biofuels
(industry)
Gaseous
Solid biofuels (co- 12.5%
biofuels
generation power
3.8%
installations and
heating installations)
Liquid biofuels
2.5%
5.0%

Total Biomass: approx. 93%
Version: March 2008; all figures provisional
Source: BMU according to Working Group on Renewable Energies / Statistics (AGEE-Stat)

German RES-Policy:
Achievements in 2007

¾ Share of RES electricity in 2007: 14.2 %

while contributing to
¾ Jobs: ~ 249,000 (increase of 55% since 2004)
¾ Turnover: ~ 24.6 billion € / a
¾ Export Market Volume: ~ 8.5 billion € / a

Source: BMU; Bundesverband Erneuerbare Energien (BEE)

German RES-Policy:
Achievements in 2007

¾ Reduction of energy related carbon dioxide emissions:
15.5 % by 2007 compared to 1990
948 Mt in 1990

773 Mt in 2007

¾ Estimation of avoided external costs (impacts of climate change):
some 12 billion € in 2007

Source: BMU/AGEEStat: 2007

Renewables – Energies of the Future
Global Energy Scenario Until 2050
Outlook
Geothermal
Other renewables
Solar thermal (heat only)

1600

Primary energy use [EJ/a]

1400
1200

Solar power
(PV & solar thermal generation)

1000
800

Wind
Bio-mass (advanced)
Bio-mass (traditional)
Hydroelectricity
Nuclear power
Gas
Coal
Oil

600
400
200
0
2000

2010

2020

2030

2040

2050

2100

Year
Source: Wissenschaftlicher Beirat der Bundesregierung Globale Umweltveränderungen (WBGU)

Renewables – Energies of the Future
Cooperation for Sustainability

¾ Initiated between Germany and Spain in June 2004
¾ International cooperation on designing
support framework
for renewable energy

Renewables – Energies of the Future
Cooperation for Sustainability

¾ Expanding renewable energy use is one of the main steps
towards a sustainable energy supply
¾ International cooperation is needed to meet the
challenges and build up the markets
¾ Germany is offering to share its experience
¾ Export Initiative for RES-technology of the
German Ministry of Economics and Technology

Renewables – Energies of the Future
Cooperation for Sustainability
Further Information

Comprehensive information on German companies
and products in the field of RES:

www.renewables-made-in-germany.com
Information on current events and fairs, case studies, branch
news, presentations and information on different RES:

www.german-renewable-energy.com

Thank you for your attention !