The German CHP and DHC strategy
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1 Joint Annual Coference: Teaming up for Energy Renewal Conrad Hotel, Brussels June 2, 2010 The German CHP and DHC strategy Udo Wichert Managing Director Evonik Fernwärme GmbH and Vice President AGFW
2 » AGFW who we are AGFW The Heat and Power Association LEGAL & EUROPEAN AFFAIRS» The Energy Efficiency Association for District Heating, Cooling and CHP KNOWLEDGE MANAGEMENT & URBAN DEVELOPMENT ENGINEERING & STANDARDIZATION» Representing companies from Germany, Austria, Netherlands and other European countries RESEARCH & DEVELOPMENT ENERGY POLICY & ECONOMY ORGANISATIONAL & OPERATIONAL SAFETY» Representing 92% of the total connected district heating load in Germany, one of the biggest markets in EU» Approximately 400 members: district heating utilities, industrial companies, manufacturers and research institutes» Independent and neutral» Almost 40 years of experience
3 » Facts and figures district heating in Germany 21,4 21,2 24,4 1,1 0,9 1,0 Saarland Nordrhein-Westfalen 1,9 1,8 1,7 8,2 Rheinland- Pfalz 6,8 8,3 Hessen Baden- Württemberg 1,3 1,0 Bremen 5,8 5,6 4,4 Schleswig Holstein 2,1 11,2 10,5 9,1 6,8 5,9 4,7 Hamburg Niedersachsen 5,6 4,3 7,0 2,9 3,0 3,3 8,0 Mecklenbur g- Vorpommer n Sachsen- Anhalt Thüringen 9,2 3,1 3,2 6,6 4,0 Bayern 2,1 2,3 Brandenburg 6,1 6,4 3,8 7,7 Berlin Sachsen 3,6 5,3 4,0 10,8 12,5 8,0 Connected load Network supply Grid length» The district heating connected load in Germany is approximately 57,000 MW th.» The district heating customers are: 46% private homes, 36% public buildings, commercial and trade sector and 18% industry.» The total length of the district heating grid in Germany is approximately 100,000 km.
4 » German energy policy political targets for DHC/CHP Political targets 2020» Increasing the share of CHP in electricity production to 25%» Reducing CO 2 emissions by 40%» Increasing the use of renewable energy in the heating sector to 14%» Doubling energy productivity» Increasing the share of renewable energy in electricity generation to 25-30% and in addition» 12 GW of fossil fuel fired power plants shall be CHP-plants, a part of them, namely 3 GW shall be motor CHP- plants» the increase of CHP and the development of renewable energy use needs the conversion from individual heating solutions to district heating (increase market share from 14 % to 65 % in 2050)
5 » German energy policy political targets for DHC/CHP Energy concept of the new government» To be approved this year» Scientific consulting firms are currently developing reference scenarios Currently discussed framework for the energy concept» Reducing CO2-emissions by 40% until 2020 and by at least 80% until 2050» Increasing the share of renewable energy in electricity production to at least 30% until 2020» Increasing the share of renewable energy in the gross final consumption of energy to 18% until 2020
6 » German legislation to implement the policy German CHP law (KWKModG 2009) main points Doubling CHP electricity share in the market to 25 % until 2020.» Support for district heating networks based on high efficient CHP and/or RES» Continuing CHP-allocation on current level» Support for the construction of new and refurbishment of old CHP-Plants» Support for high efficient CHP Renewable energy heat law (EEWärmeG) Increasing the use of renewable energy in the heating sector from 6 % to 14 % in 2020» CHP-based district heating supply as substitute for renewable energy» Obligation for the use of biogas in CHP-plants» Compulsory heat planning regulated at federal level
7 » What the sector is offering to implement these political goals In order to reach the targets, the sector is willing to...» significantly extent the district heating networks until 2020 (thousands of kilometers of pipelines),» realize the extension and densification potential along the district heating networks until 2050,» increase the share of CHP and district heating significantly over the already ambitious political goals,» increase the share of RES in district heating systems significantly, consisting of a mix of biogas, solid and liquid biomass, solar and geothermal energy as well as industrial waste heat
8 » How to realize these targets General strategies to extent district heating networks» Extension of densification along existing district heating networks,» Extension of district heating in areas that were previously not supplied based on thorough analysis,» Prioritizing areas according to their potential,» Realizing smaller, independent networks with a view to integrate these networks in the future.
9 » Barriers for district heating - the effect of the ETS 2013 Relative increase in costs per additional MWh th of heat sold Hard coal CHP plant and natural gas benchmark of 217 g/kwh CO 2 -price CO 2 -price CO 2 -price
10 » What the sector needs In order to reach the targets, the sector needs...» a stable political and legal framework,» political commitment to CHP and DHC in the context of climate change and energy efficiency targets,» reconcilability of RES and CHP and district heating as equal ways of reaching political targets,» A level playing field in the heating market, especially concerning the ETS 2013, which is limited to installations >20MW
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12 Joint Annual Coference: Teaming up for Energy Renewal Conrad Hotel, Brussels June 2, 2010 Thank you for your kind attention. contact details Website: udo.wichert@evonik.com
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