GREENING THE GRID. Strategies for the State of Power

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1 GREENING HE GRID Strategies for the State of Power

2 Renewable Energies in Mecklenburg-Vorpommern page 3 Eight Guidelines for the Energy Land 2020 pages 4 7 Wind Energy a Growth Sector pages 8 9 Doubling of Biogas Plants pages Qualified for Photovoltaics pages Invest in Mecklenburg-Vorpommern pages 14 15» Energetic Introduction Renewable Energies in Mecklenburg-Vorpommern M ecklenburg-vorpommern is seeing a rapid growth in the utilization of renewable energies. he North East of Germany is on the advancement of renewable energies. he economic policy in Mecklenburg-Vorpommern is focusing on combining efficient energy policies with climate protection. he overall strategy Energy Land 2020 represents the state government s concept for the future of energy supply. Future Opportunities hrough Climate Protection A future-proof energy industry, which helps to advance the region and create jobs, requires an energy policy geared toward the long term. his should give equal consideration to economical, ecological and social needs, while making the energy supply as secure, cost-efficient and environmentally friendly as possible. An efficient energy policy must contribute to the reduction of greenhouse gas emissions. However, it is not just the field of pollutant reduction where renewable energies are a key topic they are also a cause of innovation in many economic sectors. A System of Guidelines on Energy Supply he Ministry of Economic Affairs, Labor and ourism has developed eight guidelines, which lay out the state government s basic agenda for energy supply up to the year Energy policies and climate protection are combined in the overall strategy Energy Land o an equal extent, this strategy will serve as a basis for further concretion of the state government s climate protection action plan. he specific steps being taken by the state are described on the following pages.

3 Enduring Power Plan Eight Guidelines for the Energy Land : Energy Prices which are Stable and Economical on the Long erm he state government of Mecklenburg-Vorpommern supports the federal government s efforts to intensify competition on the gas and electricity markets and to thus achieve stable and economical energy prices. hese include measures such as: the tightening of antitrust legislation, the improvement of connection conditions for new power plants, and the replacement of grid fee approvals with an incentive regulation, but also participation in the discussion on further unbundling measures. 2: Expansion of the Electricity and Gas Networks Expansion of the power grid is essential, particularly not only in order to forward the electricity produced by future offshore wind turbines, but also in order to eliminate grid bottlenecks and to supply electricity to expanding companies. Comprehensive, reliable supply should also be guaranteed in the future. o this end, the four balancing zones in the German electrical supply system should be combined to form one shared balancing zone. For the gas pipeline from Russia which comes ashore at Lubmin, onshore off-take pipelines towards West and South Germany are needed. he Mecklenburg-Vorpommern State Government supports this project, which is of great importance to the state. In order to enable feeding biogas into the gas distribution network, decentralized producers are also to be connected to the network. 3: Energy Site Lubmin he most important energy site in the state is being developed into an outstanding industrial location. Alongside producers of renewable and fossil energies, companies in various other industries have already established themselves. As the Baltic Sea pipeline comes ashore in Lubmin, the value of this location increases further. A concept for the construction of electricity, gas, and heat networks in Lubmin is needed. Likewise, there is a need for more heat users to establish themselves in the area. 4: Renewable Energies and Renewable Raw Materials he expansion of renewable energies is a key policy aspect for Energy Land he development of rural, decentralized energy supply structures with largely selfsufficient supply can contribute to economic stabilization, increase employment, and security of supply. By means of repowering in the onshore segment with the development of offshore installations, Mecklenburg-Vorpommern will greatly increase its wind power potential. he utilization of biomass for materials and energy not only are environmentally protected and future-proofing, but employment and added value will be essential in the rural regions. herefore, renewable raw materials and the utilization of bioenergy are of particular importance to Mecklenburg-Vorpommern. Particular support should be given to projects which enable highly efficient and comprehensive utilization of bioenergy. aking the possibilities for solar energy generation into account at an early stage in the planning of construction projects enables cost reductions and creates additional income sources. here is still considerable potential for savings to be made from using solar thermal energy for heating support, and for the generation of process heat in the industrial sector this potential must be tapped into more intensively. For increased utilization of deep geothermal energy, it will be necessary to obtain additional funding from the German Federal Government and from the EU.

4 Enduring Power Plan Eight Guidelines for Energy Land : Climate Protection and Energy Efficiency 6: Waste Management and Energy Management 8: Job Creation and Job Security he improvement of energy efficiency and the saving of energy in all areas of life are particularly important components of climate protection measures. In the future, state policies will accommodate these concerns by continuing the subsidization of urban development, residential construction, and transportation. Efforts are to be made to find efficient ways of tapping into the state s as-yet-unused waste heat potential. herefore, particular importance is placed on energy supply concepts which incorporate corresponding potential and the possibilities of creating the required infrastructure. Farming of publicly owned state land occurs in accordance with the principles of efficiency and environmental compatibility, and efforts are being made to minimize the consumption of energy and resources. Waste management in the state should increasingly be developed into energy management and greater use should be made of the economic potential. Alongside traditional renewable energy sources, waste management offers energy potential which is nowhere near exhausting. 7: Promotion of echnology and Innovation Mecklenburg-Vorpommern is placing an emphasis on the development of new technologies and their implementation in practice. o this end, networks and competence centers such as: the Hydrogen echnology Initiative, the Solar Center, and the Wind Energy Network Rostock are receiving support. Storage technologies are also being worked on. he key research areas also include investigation into various methods of producing second-generation biofuels and technologies for storing energy. Jobs should be created and secured in Mecklenburg- Vorpommern by means of appropriate framework conditions, such as: stable and economical energy prices, a high level of self-sufficient supply based on renewable energy sources, the use of new technologies (e.g. second-generation biofuels and storage technologies), and by means of companies in the energy industry establishing themselves locally. Eight Guidelines for Energy Land : Energy Prices which are Stable and Economical on the Long erm 2: Expansion of the Electricity and Gas Networks 3: Energy Site Lubmin 4: Renewable Energies and Renewable Raw Materials 5: Climate Protection and Energy Efficiency 6: Waste Management and Energy Management 7: Promotion of echnology and Innovation 8: Job Creation and Job Security

5 Home of the Wind Wind Energy a Growth Sector he development of wind energy in Mecklenburg-Vorpommern is a real successfull story. Wind, an endless source of energy, has long been in favor here. he state offers companies within this sector professional networks and attractive opportunities for growth in a flourishing world market. With a comprehensive value creation chain offering services ranging from development and production through maintenance, the region is also establishing itself as a center for onshore and offshore wind energy. Creating Jobs in the Region Wind energy is synonymous with sustainability. he wind industry generates a great deal of employment, ranging from: the fundamental scientific work, planning, project development and financing, the construction, and the operation of the installations. Around 40 companies with over 1,200 employees form the sector s sturdy backbone in the state. More than 1,500 wind turbines already generate energy which covers 40 percent of the region s energy demand. At Home in the World s Markets Mecklenburg-Vorpommern is home to world market leaders such as the wind turbine manufacturer Nordex Energy GmbH. Companies like these are producing internationally successful cutting-edge technologies right here. hey are backed up by local supply businesses, engineering firms, and planning/operating companies. hese local businesses play an important part in onshore and offshore projects and create numerous skilled jobs. On Course for Success Onshore and Offshore he successfull story continues: the development of offshore wind energy is giving the wind energy industry a considerable boost. Impressive offshore wind parks are taking shape off of Mecklenburg-Vorpommern s Baltic Sea Coast. Baltic I, Germany s first commercially-operated offshore wind park, is due to go online in 2010 and many other projects are nearing completion. A Network Full of Opportunities In order to bundle technical and economic potential, the key players in the sector have come together to form the Wind Energy Network Rostock. his association is a competence network, a qualification initiative, a sector lobby group and recruiting partner in one. Smaller companies too are now being given the chance to be successfully involved in major, complex projects. Firmly Anchored in Mecklenburg-Vorpommern WINDSÄRKE 11, the 2009/2010 main sponsor of the soccer club F. C. Hansa Rostock, is also helping to establish a good reputation for the wind sector in Mecklenburg- Vorpommern. his initiative exclusively comprises companies from the wind-energy sector with a passion for the club and the region as a whole. Germany and the Southern Baltic Sea Region are European leaders in wind energy. Not only does Mecklenburg-Vorpommern lie at the heart of this region geographically, it is also a hub of expertise.

6 Down to Earth Doubling of Biogas Plants 11 S ince the market stimulation program for the promotion of renewable energies and the German Renewable Energy Sources Act (EEG) have come into effect, the number of biogas plants in Mecklenburg-Vorpommern have almost doubled. As the state is largely characterized by agriculture, it offers excellent opportunities for major expansion of the production of biogas from mainly agricultural substrates. A series of plants are currently under construction or in the planning stage. Feeding into the Natural Gas Network In combined heat and power (CHP) plants, biogas is used to generate electricity, mainly by means of cogeneration systems. On the medium to long term, additional possibilities will arise due to the use of micro gas turbines, heat engines and fuel cells. Feeding biogas directly into the natural gas network is another alternative for the future. he Potential of Landfill Gas and Sewage Gas Landfill gas is also produced in Mecklenburg-Vorpommern a gas which contains a high proportion of methane. Even though the dumping of untreated organic material has not been permitted since 2005, the existing landfills will still produce large gas volumes for at least two to three decades. In addition, the treatment of waste water produces sewage sludge, from which biogas containing methane can be extracted. Green Electricity Instead of Emissions oday, more than 30 percent of the potential of landfill and sewage gas is already being tapped. Moreover, the expansion of landfill gas utilization in particular is promising, as around 20 landfills in the state offer suitable conditions for the construction or further development of gas extraction facilities. his would enable reduction of climate-damaging methane emissions, while simultaneously covering around 1.5 percent of the state s electricity consumption. Energy from Local Crops In Mecklenburg-Vorpommern, huge areas of agricultural land have been set aside the ideal basis for the cultivation of energy crops. oday, more than a third of the land used for rapeseed cultivation in Germany is tilled for non-food purposes. Mecklenburg-Vorpommern has the largest cultivation areas after Schleswig-Holstein and Bavaria. Excellent Prospects for Biogenic Fuels he use of biogenic fuels from energy crops is becoming increasingly important, as the EU has set itself the goal of continually increasing biogenic fuels share of the fuel market. he vegetable oil extracted from rapeseed can be used directly in special engines or, after transesterification, in conventional diesel engines. Furthermore, additional residues can be utilized as fuels and raw materials for the production of biogas.

7 Shining Perspectives Qualified for Photovoltaics 13 Many companies in the state, such as hermovolt AG, are active in R&D, engineering, and the construction of solar energy plants. he recruitment of qualified and motivated personnel is especially important for investment projects in the photovoltaic industry. he state employment offices get involved in the early stages of projects and supply the investor with job applications that exactly match the company s personnel requirements. Free Space is the Foundation In Mecklenburg-Vorpommern, a huge amount of space is available for photovoltaic electricity generation. On a total of 23 million m² of roofs, facades and land, photovoltaic systems could be installed which would cover up to 37 percent of the present electricity consumption. Around 34 percent of the state s heat demand could be covered by solar collectors. he foundation has been laid! SOLON: Global Player in in Mecklenburg-Vorpommern Vorpommern he company SOLON SE is one of the largest manufacturers of solar he company modules and SOLON providers SE is one of solar of the power largest plant manufacturers solutions in of all of Europe. solar modules he SOLON and providers Group has of subsidiaries solar power plant in Germany, solutions Austria, in Italy, all of Switzerland, Europe. he and SOLON the Group US, with has a subsidiaries total of approximately in Germany, 900 employees Austria, Italy, worldwide. Switzerland, SOLON and manufactures the US, with solar a total modules of approximately ratings, 900 employees offers complete worldwide. photovoltaic SOLON manufactures system solutions solar for the of various power construction modules of various of solar power ratings, stations, offers and builds complete turnkey photovoltaic solar power plants system around solutions the for world. the construction of solar power stations, and builds turnkey solar power plants around the world. Strong Partner for Solar Energy SOLON s Greifswald production site has found a reliable partner in another Greifswald company: ml&s manufacturing, logistics and services GmbH & Co. KG. For the SOLON SE Berlin headquarters, ml&s is responsible for the installation of photovoltaic modules, which are stored in and shipped from the attached logistics building. he recruitment of qualified and motivated personnel was a key success factor for the establishment of the Greifswald production site. Centrosolar: Automation of Production he company Centrosolar Sonnenstromfabrik GmbH, located in Wismar, Mecklenburg-Vorpommern, is a subsidiary of the German group Centrosolar AG, one of the leading providers of photovoltaic systems and solar energy components in Europe. he completely new Sonnenstromfabrik plant was built in 2008 as a highly automated manufacturing facility for solar modules near the company s Solara plant in Wismar. Its total annual production capacity is 150 Megawatt Peak roughly equivalent to the power consumption of 70,000 German households. Stand-Alone Systems for Everyday Use he new Wismar plant, which created 350 jobs, manufactures solar modules for use in traffic control, building services, and plant engineering and develops individual, customized solutions for a wide range of applications, including roof integration and stand-alone systems.

8 We re your Partner Invest in Mecklenburg-Vorpommern 15 Investor Hotline +49 (0) (24-hour) Renewable energies: benefits of Mecklenburg-Vorpommern A leading position in onshore and offshore planning Intelligently-linked water, land and air transport routes A supply of experienced, qualified workers Numerous industrial parks with port links In-depth regional knowledge of green energy and facility construction Invest in Mecklenburg-Vorpommern GmbH is the state s own economic development agency. As a one-stop agency, we act as a partner for companies looking to expand into Mecklenburg-Vorpommern. We promote the region on a national and international level, help companies to find suitable premises and set up networks within the various sectors. Our efficient services are individually tailored to companies needs. Service Provider for Companies As a central point of contact, we represent the interests of companies when dealing with the authorities and state institutions. We also help you to find suitable business partners and qualified workers. We have an in-depth knowledge of the property market and can help you to find suitable premises or industrial sites. We also advise you on the grants and investment subsidies available. ake advantage of our expertise. Naturally, our services are available free of charge. Effective, customized and individual. We re here for you: Invest in Mecklenburg-Vorpommern GmbH Michael Sturm // Managing Director Schlossgartenallee 15 D Schwerin Germany el.: +49 (385) Fax: +49 (385) info@invest-in-mv.de Business sites database: Your personal contact: Henner Willnow // SENIOR CONSULAN el.: +49 (385) Mobile: +49 (151) willnow@invest-in-mv.de

9 Legal information Published by: Invest in Mecklenburg-Vorpommern GmbH Michael Sturm //MANAGING Director Dr. Stefan Rudolph //CHAIRMAN Concept, text, photographs (unless indicated otherwise) and overall production: Qbus Werbeagentur GmbH, Editorial Office: Henner Willnow //SENIOR CONSULAN Invest in Mecklenburg-Vorpommern GmbH Responsible on behalf of the Publisher: Michael Sturm //MANAGING Director Invest in Mecklenburg-Vorpommern GmbH Production: Druckerei Hahn GmbH Invest in Mecklenburg-Vorpommern GmbH All information is true to the best of our knowledge but no responsibility is accepted for its correctness. No maps, photographs or texts may be reproduced without the consent of the copyright holder. his information was co-funded by the Federal Government Commissioner for the New Federal States.

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