Renewable Energies in Germany - Political Framework for Wind Energy and Market Development
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1 placeholder partner logo Energy Renewable Energies in Germany - Political Framework for Wind Energy and Market Development WindEnergy Business Conference Chicago, 10 November 2009 Jens Altevogt, RENAC
2 Content German Governmental Instruments and Programs Integrated Energy and Climate Protection Program (IKEP) Development of Renewable Energy Use in Germany Renewable Energy Sources Act (RESA) Act to Accelerate the Expansion of Extra High Voltage Transmission Networks Companies
3 Renewables Academy AG (RENAC) - RENAC - Renewables Academy Trainings photovoltaics solar thermal wind energy grid integration energy efficiency client specific and open trainings in Germany and anywhere else Academic Courses Master Study GPE Solar in cooperation with Technical University Berlin interface to solar companies and practice marketing students mentoring Services market research consulting international PR dissemination of knowledge conferences, workshops delegation program
4 placeholder partner logo Energy German Governmental Instruments and Programs
5 Governmental initiatives for EE and RE since Acts and Ordinances relevant for EE and RE have been passed Approximately 70 governmental programs and campaigns have been and are still being carried out to improve energy efficiency A well conceived mix of instruments (campaigning, financial support and regulation) has triggered strong growth in all renewables sectors
6 Governmental instruments and programs Qualification Information Motivation Communi- cation Fiscal Financial Support Instruments R&D Negotiated Agreements Standards Regulation
7 Comprehensive Political Strategy for Renewable Energies Decision of German Government (2007): Integrated Energy and Climate Protection Program (IKEP) with 29 measures in favour of energy efficiency and renewable energy Objectives: 40% reduction of greenhouse gas emissions by 2020 compared to % of electricity production from renewable energy sources by % heat from renewable energy in 2020, today 6.6 % (2008)
8 Key measures of Energy and Climate Protection Program Combined heat and power Cogeneration Renewable energy soures electricity and heat Natural gas grid access ordinance Amendment of energy conservation regulations Energy efficiency in buildings Deregulation of metering Grid extension Electricity Transmission Network Extension Act Energy research and developement Cabinet Conference in Meseberg, August 2007
9 Energy Development of renewable energy use in Germany
10 Development of Renewable Energy in Germany Market Share and Political Targets mind.30 1) ) Ziele der Bundesregierung Targets Federal Government % EU- Ziel für EE im Verkehrssektor (für alle Mitgliedsstaaten) 10% EU target for transport sector [%] 15 14,8 14 1) ,7 4,8 3,1 3,5 Anteile EE am gesamten Final energy Endenergieverbrauch (Strom, consumption Wärme, Kraftstoffe) Anteile EE am gesamten Electric power Bruttostromverbrauch consumption Source: BMU KI III 1 - Arbeitsgemeinschaft Energiebilanzen - as of April ,7 Anteile EE an der gesamten Heat Wärmebereitstellung supply 0,2 6,1 10 Anteile EE am gesamten Fuel Kraftstoffverbrauch (transport) 2,1 7,1 3) Anteile EE am gesamten Primary energy Primärenergieverbrauch consumption
11 Development of renewable energy use in Germany Business and turnover : total turnover from renewable energy 28,7 bln *Solar Thermal Market turnover 1,450 mln **PV market turnover 8,300 mln biomass 10,670 mln 37% 34% solar energy 9,750 mln hydro power 1,350 mln 5% 20% Source: BMU: energien.de; BSW Solar 4% geothermal incl. heat pumps 1,103 mln wind power 5,800 mln
12 Development of Renewable Energy in Germany Business and Turnover *Solar Thermal Market turnover 1,700 mln **PV market 2008 turnover 7,000 mln Source: BMU: energien.de
13 Development of Renewable Energy Use in Germany Jobs and Employment from *Solar Thermal Market Employees 17,400 **PV market Employees 57,000 Source: BMU: energien.de
14 Electricity Generation in Germany from Renewable Energies Electricity Electricity Generation generation [GWh] (GWh) 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Hydropower Biomass* StrEG 1 January 1991 Development of electricity generation from renewable energies in Germany, Wind energy Photovoltaics Amendment to BauGB November 1997 EEG 1 April 2000 New EEG 1 August *Solid, liquid, gaseous biomass, biogenic share of w aste, landfill and sew age gas; StrEG: Act on the Sale of Electricity to the Grid; BauGB: Construction Code; EEG: Renew able Energy Sources Act; Electricity from geothermal energy is not presented due to the negligible quantities of electricity produced; Source: BMU-Brochure: "Renew able energy sources in figures national and international development", KI III 1; Version: June 2009; provisional figures Year EEG 2009 ex 1 January 2009 share of FEC 15.1 %
15 placeholder partner logo Energy Renewable Energy Sources Act (RESA)
16 Basic Principles of Renewable Energy Sources Act (RESA) Guaranteed grid access for renewable energy plants Priority of feed-in for renewable electricity, purchase and transmission obligation for utilities Fixed feed-in tariffs regulated by law, payed for the duration of 20 years, therefore high security of investment
17 Priority of feed-in for Renewable Electricity (RESA) Region with central generation Conventional Region with high renewable generation and low load RES-E = Voltage level Transformer
18 Feed-in tariff System (RESA) power producer grid operator transmission grid operator power supply EEG tariff customer trader
19 Tariffs, Degression and direct Marketing (RESA) Feed-in-tariffs vary according to technology and system size Defined anual degression for each tariff shall boost new technologies and innovation Direct marketing of electricity monthly RESA-exit monthly RESA-entry defined percentage of actual generation possible
20 Feed-in Tariffs 2009 (RESA) Technology Payment time [years] Feed-in tariff [ cent / kwh] Degression rate annually Wind power (onshore) ( 5.02)** 1,0% Wind power (offshore) ( 3.5)** 5% as of 2015 Photovoltaics % -10% Hydro power < 5 MW Large hydro > 5 MW Biomass % Geothermal energy % * Additional bonus up to 13 ct/kwh if renewable raw material is used ** The tariff is paid in the beginning and is reduced during the payment time to the lower level Source: RESA
21 Grid Extension and Grid Codes (RESA) Grid extension Technical difficulties do not justify the rejection of grid access. Required grid expansion has to take place without delays. Principle of the proportionality: cases are considered on an individual basis. Fault ride through, active / reactive power management New installations: 0.5 cent/kwh bonus Old installations: 0.7 cent/kwh bonus for a period of 5 years if installation commissioned before if retrofitting is realized before
22 Generation Management in Case of Grid Overload (RESA) New installations (capacity >100 kw) must have a technical or operational facility to reduce output by remote means in the event of grid overload, and to call up the current electricity feed-in at any given point in time to which the grid system operator may have access Wind, PV and hydro have priority access, geothermal an biomass will be curtailed first Old installations have to fulfill the requirement by
23 How much extra costs? (RESA) Average specific RESA-fee in 2007: 11.4 ct/kwh Total RESA-fee in 2007: 7.9 Billion EUR Additional/differential RESA-costs in 2007: 4.3 Billion EUR Figures for 2007 are proviorial. 1) Private and public feed-in Source: BMU 2008, Renewable Energy Sources in Figures
24 Development of Electricity Prices for Consumers, Costs of Renewable Electricity (RESA) 1 ct per kwh or 3,20 per household per month Source: BMU (2008)
25 placeholder partner logo Energy Act to Accelerate the Expansion of Extra High Voltage Transmission Networks
26 Load Flows in German Grid with Strong Wind High Load 2003 DK S Germany Neighbouring Country 500 MW 1000 MW NL Northwest East PL 2000 MW B West Central 3000 MW 5000 MW F Southwest CH South east A CZ Quelle: dena-netzstudie I Quelle: dena Netzstudie I, 2005
27 Load Flows in German Grid with Strong Wind High Load 2015 DK S Germany Neighbouring Country 500 MW 1000 MW NL Northwest East PL 2000 MW B West Central 3000 MW 5000 MW F Southwest CH Souteast A CZ Quelle: dena-netzstudie I Quelle: dena Netzstudie I, 2005
28 Expansion of Extra High Voltage System up to Grid expansion: reinforcement of 390 km of existing power lines and construction of 850 km of new power lines Costs: Investment: 1.1 Billion onshore grid Grid fees: + 0,025 Cent/kWh (due to onshore investments 8 Extended grid can be used for trading Problem: long time for licensing
29 Act to Accelerate the Expansion of Extra High Voltage Transmission Networks Objectives: Speed up the realization of 24 high-priority grid construction projects involving extra-high voltage transmission networks (380 kv) Enable EU-wide electricity trading and integration of power generated from wind energy and from new, highly efficient conventional power plants Enables the use of 380 kv underground cables within the framework of four pilot projects Use high voltage direct current (HVDC) technology Took effect on 26 August 2009
30 German Wind Enterprises Chicago August Friedberg GmbH Beton Service GmbH ContiTech Vibration Control GmbH Gedore Werkzeugfabrik Notus energy Pilz GmbH Powerwind WKA SIAG Aerisyn LLC
31 RENAC Training Topics and Facilities Technologies: Wind energy Photovoltaics Solar Thermal Concentrating Solar Power CSP Energy efficiency in buildings Energy efficiency in industry and commerce Aspects: Technology Costs and financing Project management Legislation Frameworks Market development Marketing
32 RENAC s Training Facilities Training Centre Training equipment energy efficiency: Motors Pumps Pressurized air systems Control technologies Ventilation and air conditioning Heating systems Lighting System Training equipment renewable energies: Wind energy Solar thermal Photovoltaics
33 Thank you! Contact Renewables Academy (RENAC) AG Jens Altevogt Albrecht Tiedemann Schönhauser Allee Berlin Phone: /88 Fax: tiedemann (at) renac.de
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