Renewables – Energies of the Future

The German Example

Detlef Loy
on behalf of
Berliner Energieagentur GmbH
Power Expo 2008
Zaragoza, September 25, 2008
 Contents

 European and German Framework

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

Picture: BMWi
Germany – in the Heart of Europe

 Area: 357,031 km²

 Inhabitants: 82.4 million

 Gross National Income:

2,423 billion EUR (2007)

 Currency: Euro

Source Map: MYGEO

 European Energy Policy
Targets for 2020

Climate Protection

Security of Energy Supply

Finite fossil-fuel Resources

Cost Increase

Import Dependency

-20% 20% -20%

Total Primary Energy Supply RES share of Final Energy Consumption GHG Emissions
(incl. 10% Biofuels) against 1990, minimum
 German Energy Policy Triangle

1. Sustainability

0.6
Global air temperature
0.4
deviation of +0.40°C
above average in 2007
Temperature anomaly (°C)

(8th warmest on record)

0.2

0.0

-0.2

-0.4

-0.6
1860 1880 1900 1920 1940 1960 1980 2000

Source: Climatic Research Unit UEA Norwich, 2008

 German Energy Policy Triangle

2. Economy

Light fuel oil Development of price indices

180
Natural gas
Electricity Fuel oil:
160
Wood pellets Trend + 19% p.a.
Natural gas:
Index Jan 2003 = 100

140
Trend + 11% p.a.
Electricity:
120 Trend + 5% p.a.
Wood pellets
100 Trend + 3% p.a.

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;
plus phasing out nuclear energy by 2022
 German Renewable Energy Policy

Main measures so far

 Renewable Energy Feed-in Tariff System (EEG):

RES electricity

 Market Incentives Programme:

grants and loans for RES heat

 Research and Development Support

 Tax incentives (partly for biofuels)

 Quota system for biofuels

 German RES-Policy

Integrated Climate and Energy Program 2007

 Electricity: Reform / extension of the feed-in legislation (EEG)

 Gas: Share of bio-methane in natural gas grid 10% by 2030
 Heat:
• Improvement of market incentives program: stable & transparent
• Renewable heat law starting 2009: quotas & rules
• Share in RES heat production 14% by 2020
 Transport: Introduction of sustainability criteria for biofuels

 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 Renewable Energy Policy

New 2020 targets…

2010 targets have been reached ahead of time

Share of RES 2000 2007 Target year

2020
Primary energy consumption 2.6 % 6.7 % 18 %

Electricity supply 6.3 % 14.2 % >30 %

Transport fuel 0.4 % 7.6 % 10 %

Long term: 50% of primary energy could come from renewables by 2050
 German Renewable Energy Policy

Total Primary Energy Consumption by different Energy Sources

Oil
Total: 13,878 PJ in 2007
34%

Hydropower: 0.5%
Wind energy: 1.0%

Gas
22% share RE
6.7% Biomass: 4.9%
2)

Other RE: 0.3%

Lignite
12%

Hard Coal Nuclear

14% 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.
 German Renewable Energy 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 Renewable Energy Policy

Composition of RES Share in the German Energy Mix (2007)

Wind Power
18%

Bioenergy
(Heat)

38%

Hydro Power 9%

Geothermal energy; 1%

Solarthermal energy; 2%

Photovoltaic; 2%
Bioenergy (Power)

Biofuels 11%

20%

Source: BMU
 German Renewable Energy Policy:
Renewable Energy Sources Act (EEG)

Main Features

 Outcome-based, cost-reflective incentive (purchase premium price

per kWh)

 Priority for grid connection, purchase and transmission of

electricity from renewable energies

 Consistent purchase fee (“tariff”) paid per kWh by the grid

operators
- Long-term perspective and investment security (15–30 years)
- Incentive for opening up new potentials and technologies

 Strong incentive for efficiency boost and cost reduction

- Tariffs differentiated by source and size of the plant
- Annual degression rates taking into account technical development

 Nationwide equalization between all grid operators and electricity

suppliers for fees paid; customers pay for additional costs, no state
subsidy !
 German Renewable Energy Policy:
Renewable Energy Sources Act (EEG)

Feed-in Tariff for plants commissioned in 2007 and degression in 2008

C e n ts /k W h D u r a t i o n ( a ) D e g r e s s io n 2 0 0 8
S m a ll H y d r o P o w e r 6 .6 5 - 9 .6 7 30 -
B io m a s s 8 .0 3 - 2 1 .1 4 20 1 .5 %
G e o th e rm a l 7 .1 6 - 1 5 .0 0 20 1 % fro m 2 0 1 0
W in d o n s h o r e 5 .1 8 - 8 .1 9 20 2%
W in d o f f s h o r e 6 .1 9 - 9 .1 0 20 2 % fro m 2 0 0 8
PV 3 7 .9 5 - 5 4 .2 1 20 5%

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

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

Contribution of renewable energy sourced electricity generation

in Germany 1990 - 2007
100,000

90,000
Hydropower Wind energy
80,000

Biomass* Photovoltaics New EEG

70,000
1. August 2004
60,000
[GWh]

EEG
50,000
1. April 2000
40,000 First feed-in tariff
1. January 1991
30,000

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, landfill and sewage gas;
Electricity fromgeothermal energy is not presented due to the low volumes of electricity
Source: Source: BM U according to Working Group on Renewable Energies / Statistics (AGEE-Stat)
 German Renewable Energy Policy:
Renewable Energy Sources Act (EEG)

Development of RES Share of Total Gross Electricity Consumption

16,00%
14.2%
14,00%
> 30%
by 2020
12,00%
Start of EEG
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 Renewable Energy Policy

Electricity Generation from RES in 2007

Hydropower (small-scale)
23.7% Wind energy
45.2%

Landfill gas
1.2%
Sewage gas
1.2%
Biogas
8.5% Photovoltaics
Solid Biofuels 4.0%
Liquid Biofuels 8.5%
3.0%
Bio-waste
4.9% Total Biomass: approx. 25%
(excluding landfill and sewage gas)

Version: June 2008l

Source: BMU according to Working Group on Renewable Energies / Statistics (AGEE-Stat)
 German Renewable Energy Policy:
Renewable Energy Sources Act (EEG)

Equalisation of Feed-in Tariff

4 Transmission Grid
Operators

Ca. 900 Distribution Ca. 900 Supply

Grid Operators RES-Electricity Companies
Payment

Renewable
Consumers
Power Plants
 German Renewable Energy 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 35.7 €ct
€ Facade + 5.0 €ct

Consumer Energy Supplier

Source: Solar Energy in Germany
 German Renewable Energy Policy:
Renewable Energy Sources Act (EEG)

Components of Electricity Price, 2007, Private Households

20.7 EUR-Cent/ kWh

Electricity
generation and
sale
Grid cost 25%
34%

Cogeneration fee
2% VAT
16%
Concession fee Electricity tax
9% 10%
EEG levy
5% Source: BMU
 German Renewable Energy Policy:
Market Incentives Programme

Solar Water Heaters Biomass Boilers

Pictures: TU Ilmenau, BMU /Bernd Müller

 German Renewable Energy Policy:
Market Incentives Programme

Grant programme for new technologies

• Basic funding of solar collectors for water and space heating,

biomass boilers and heat pumps

• Funding bonus for combined measures (solar + biomass, solar

+ heat pump) and in case of additional measures for reducing
the heat demand below building code standards

• Separate funding for innovative technologies, such as solar

cooling and solar process heat

• Fund money is coming from ecotax revenues

Source: BMU/BEE
 German Renewable Energy Policy:
Market Incentives Programme

Development of RES Share of Total Heat Consumption

7 ,0 0 %
6 .6 0 %

6 ,0 0 % 14% by
2020
5 ,0 0 %

4 ,0 0 %
3 .5 0 %

3 ,0 0 %

2 ,0 0 %

1 ,0 0 %

0 ,0 0 %
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Next step: RES Heat Law starting in 2009

Source: BMU/BEE
 German RES-Policy:
Market Incentives Programme

Heat Supply from RES

Total: 90 TWh in 2007 Solid biofuels

(households)
64.1%
Mainly
wood
Heat pumps

2.4%

Deep geothermal
energy
0.2% Solar thermal
energy Solid biofuels
4.1% (industry)
Gaseous Solid biofuels (co- 12.5%
bio-waste biofuels generation power
5.4% 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 Renewable Energy industry:
Achievements in 2007

The installation and operation of RES facilities

contributed to

 Jobs: ~ 249,000 (increase of 55% since 2004)

 Turnover: ~ 24.6 billion €

 Export Market Volume: ~ 8.5 billion €

 Avoided fossil fuel imports: ~ 4.3 billion €

Source: BMU; Bundesverband Erneuerbare Energien (BEE)

 German Renewable Energy industry:
Turnover development

Turnover
Billion Euro
 German Renewable Energy Policy:
Achievements up to 2007

 Reduction of total energy-related carbon dioxide emissions:

-18.3 % in 2007 compared to 1990
948 Mt in 1990

774 Mt in 2007

CO2-Savings from RES in 2007: 115 Mt, of which 79 Mt alone from

RE-electricity

 Estimation of avoided external costs (impacts of climate change):

at least 5.8 billion € in 2007 (based on the assumption of climate
change costs of 70 €/t CO2); compared to additional costs for RE
electricity of 4.3 billion €

Source: BMU/AGEEStat: 2007

 Renewables – Energies of the Future
Global Energy Scenario Until 2050

Outlook

1600 Geothermal
Other renewables
1400 Solar thermal (heat only)

1200
Primary energy use [EJ/a]

1000
Solar power
(PV & solar thermal generation)
800

Wind
600
Bio-mass (advanced)
Bio-mass (traditional)
400
Hydroelectricity
Nuclear power
200 Gas
Coal
0 Oil
2000 2010 2020 2030 2040 2050 2100
Year
Source: Wissenschaftlicher Beirat der Bundesregierung Globale Umweltveränderungen (WBGU)
 Renewables – Energies of the Future
Cooperation for Sustainability

 Initiated between Germany and Spain in June 2004

 International cooperation on designing

support framework for renewable energy
 Renewables – Energies of the Future
Cooperation for Sustainability

 Expanding renewable energy use is one of the main steps

towards a sustainable energy supply

 International cooperation is needed to meet the

challenges and build up the markets

 Germany is offering to share its experience

 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 !