Political Framework for Renewable Energies in Germany
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1 Political Framework for Renewable Energies in Germany 24. June 2008 AHK-Program Renewables Made in Germany Syracuse, NY, USA Pio Jaworski, Ecofys Germany GmbH
2 Contents Development of Renewable Energies Support mechanisms: status and recent developments The European Approach and impacts for Germany The renewable energy market
3 Development of renewable energy sources
4 Development of renewable energy sources in Germany in 2007
5 Share of Biomass in total Renewable Energy Supply Source: BMU, Erneuerbare Energien in Zahlen, Juni 2007
6 Biomass Source: Informationskampagne für Erneuerbare Energien
7 Biogas MW Number of Plants Installed electrical Power [MW] Source: Informationskampagne für Erneuerbare Energien
8 Support mechanisms: status and recent developments
9 RE support mechanisms in Germany EEG (Renewable Energy Act): Feed-in Tariff for RE electricity MAP (market incentive program): state subsidies for RE-heat and related investments Biofuels: Quota replaces tax exemptions Research and Development Export promotion measures
10 EEG RE electricity feed-in tariff EEG law enacted in 2000, adjusted in 2004, 2007, 2008 Priority for feed-in of RE Extensive regulation for grid access Legally regulated payment rates Long-term perspective and investment security (20years) Incentive for R&D (esp. biomass and geothermal energy) Strong incentive for efficiency boost by degression of payment rates
11 Feed-in Tariffs 2008 and 2009 (proposed) Cent/kWh Year 2008 (US$/kWh) Degression Cent/kWh Year 2009 (US$/kWh) Degression Biomass (<20 MW) ( ) 1.5% (on base tariff) ( ) 1.0% (on base tariff) Geothermal Energy (<20MW) ( ) 1.0% ( ) 1.0% Wind energy (onshore) ( ) 2.0% ( ) 1.0% Wind energy (offshore) ( ) 2.0% ( ) 5.0% Solar power ( ) 5%-6.5% ( ) 8.0%-10.0% Hydropower (< 5 MW) ( ) 0.0% ( ) 0.0% 1 cent ~ 1.54 US$
12 Essential amendments to EEG 2009 Basic structure retained Additional 3.3 billion are made available in an increase of 200% compared to 2005 Higher requirements for power generating facilities Improvement of grid management and feed-in conditions for RE Increase of financial incentives for repowering
13 Essential changes EEG 2009 Biomass Increased incentives for CHP Increased tariff for small-scale installations Obligation for CHP use for installations >5MW
14 MAP 2008: subsidies for RE heat Continuation of MAP 2007 with new focal points and higher budgets (2008: 350 Mio. / 2009: 500 Mio. ) Additional new bonus system for highly efficient facilities and intelligent coupling of different renewable energy sources Additional subsidies for efficient heat pumps
15 MAP: Comparison of base subsidies 2007/2008 Pellet boilers & stoves (<100kW) Wood chip boilers (per installation): Split log gasification boilers (15-30kW) (per installation): Solar collectors (warm water) <40m 2 MAP 2007 in EUR (US$) 24 /kw (37.2 US$/kW) 500 (775 US$) 750 (1,163 US$) 40 /m 2 (62 US$/m 2 ) MAP 2008 in EUR (US$) 36 /kw (55.8 US$/kW) 500 (775 US$) 1,125 (1,743 US$) 60 /m 2 (93 US$/m 2 ) Solar collectors (warm water & heating) <40m 2 70 /m 2 (109 US$/m 2 ) 105 /m 2 (163 US$/m 2 )
16 The European Approach and Impacts for Germany
17 International development: EU RE-Roadmap binding targets for 2020: 20% RE share (primary energy) 20% energy efficiency increase 10% share for biofuels 20-30% CO2 reduction How to reach 20% RE target? Sectoral projections: 35 40% RE electricity share min 25% RE heat share min 12% share for biofuels
18 Germany in the European context EU-assigned RES-E target for Germany in 2010 is 12.5% already exceeded in 2007 National targets for 2020: RES-E: % RE-share in heat production: 14 % European Commission attested feed-in tariffs to be an effective and cost efficient instrument
19 Total RE development in Germany Contribution of renewable energy sources to Germany's energy supply German Government Targets 25% - 30% 1) German Government Targets [%] ) 18 2) Share of RE in Total Prim ary 3) Energy Consum ption 4.8 Share of RE in Total Gross Electricity Consumption 3.5 Share of RE in Total Final Energy Consum ption for Heat Share of RE in Fuel Consumption for Road Traffic 1 ) The Integrated Energy and Climate Programme of the German Government, ; 2) Directive of the Euopean Parlament and of the Council on the promotion of the use of energy from renewable sources, ; 3) For calculating the share of primary energy consumption (PEC), the (official) physical energy content method has been used. Acc. to the substitution method: 9.1 % RE - renewable energies, Source: BM U according to Working Group on Renewable Energies / Statistics (AGEE-Stat); Version: M arch 2008; all figures provisional Share of RE in Total Final Energy Consumption (electricity, heat, fuels)
20 Conclusion policy measures Big future challenges German approach has been very successful so far electricity: targets exceeded Technologies are available / strong industry has developed Increased & improved support needed for heat to reach target Smart support schemes must aim at making technologies competitive International cooperation needed
21 The Renewable Energy Market
22 From policy to market Broad technology range; strong industries in Germany: Largest PV market worldwide Largest wind power market worldwide Second largest Solar-Thermal market worldwide Rapidly growing export rates (2007: wind turbines: 71%, solar: approx. 40%) jobs in 2007; estimated jobs in 2020 Strong home market stimulates production International cooperation needed
23 RE business: energy turnover Total turnover with renewable energy sources in Germany in 2006 Total: approx billion Biomass; 9,135 m; (40.8%) Solar energy; 5,825 m; (26.0%) Wind energy; 5,650 m; (25.2%) Hydropower; 1,180 m; (5.3%) Geothermal energy; 590 m; (2.6%) Sources: Internet Update BMU-Brochure "Renew able energy sources in figures national and international development" Version: November 2007; provisional figures
24 Biofuels recent developments Total biofuels until 2020: 20 vol% (17% energetic) Support coupled to cross compliance standards (habitat protection, minimum environmental cultivation standards) Higher blending quota for bioethanol in gasoline: (from 5 vol% to 10 vol%) Higher quota for biodiesel in diesel fuels: (5 vol% to 7 vol%)
25 RE fuels in Germany Structure of biogenic fuels in Germany in 2006 Total: 40,4 TWh Biodiesel 72.9% Bioethanol 8.8% Vegetable oil 18.4% Sources: Internet Update BMU Presentation "Renew able energy sources in figures national and international development-" Status: November 2007, provisional figures
26 RE sector employees Employees in the German renewable energy sector 2004, 2006 and 2007 Wind energy Biomass Solar energy Hydropower Geothermal energy Public / Non-profit Sector Jobs 9,400 9,400 9,500 4,500 4,200 1,800 4,300 4,300 3,400 25,100 40,200 56,800 50,700 63, ,500 employees 84,300 82,100 Increase: approx. 55 % 235,600 employees 96,100 95, ,300 employees ,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90, , ,000 Source: BMU Projekt "Kurz- und langfristige Ausw irkungen des Ausbaus der erneuerbaren Energien auf den deutschen Arbeitsmarkt", interim report March 2008
27 Conclusions RE are climate friendly, technologically mature, a job wonder, highly popular, approaching competitiveness, => a widely accepted option for today AND tomorrow Political will / smart support is essential for further market development EU RE targets: in fact not burden sharing but sharing of new business opportunities
28 Companies present Vikat Energiesysteme GmbH (Heiner Fröhling) Bekon Energy Technologies GmbH & Co KG (Peter Lutz) BPRe Holding für erneuerbare Energien GmbH (Hans- Theodor Bedburdick) eoil automotive & technologies GmbH (Michael Wenzel) Lahmeyer International GmbH (Bernhard Wunder) EnviTec Biogas GmbH (Henrike Witt) NÖRR STIEFENHOFER LUTZ (Till Vogel)
29 Thank you for your attention! Pio Jaworski
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