Upsides and Downsides

Transcription

1 PV installation in front of the official residence of the German federal chancellor. Photo: BSW-solar/Langrock Germany s Renewable Energy Sources Act: Upsides and Downsides After much heated debate, Germany s governing parties have agreed to a compromise: The amendment to the Renewable Energy Sources Act (EEG 2009) will come into effect on 1 January Alongside the feed-in tariffs for biomass systems, the regulations regarding photovoltaics in particular were disputed to the end. Firstly, the key points: The basic structures of the act remain unchanged. The grid operators are still categorically obliged to connect the systems to its grid at the nearest respective grid connection points, to accept the generated electricity, and to pay for it in accordance with the EEG s feed-in tariffs. Described below are firstly the feed-in tariff regulations, then a number of significant changes. Wind In the feed-in tariff regulations for wind energy, a distinction is made, as before, between onshore wind energy ( 29, 30 EEG 2009) and offshore wind energy ( 31 EEG 2009). For onshore wind energy, there remains the so-called initial feed-in tariff, which has been increased significantly, and the duration for which it is to be paid depends on the wind levels at the location. This is followed by the EEG s so-called basic feed-in tariff, which has also been increased significantly, and which continues until expiry of the subsidy period (the year which had begun at the time of commissioning, plus 20 years). In addition, if certain requirements are met, system operators whose wind turbines are commissioned in the period beginning on 01/01/2009 and ending on 01/01/2014 receive a so-called system service provision bonus of 0.5 ct/kwh added to the initial feed-in tariff ( 29 para. 2, sentence 4, EEG 2009). The details of the system services to be provided are still to be defined in a statutory ordinance as per 64 EEG With regard to the so-called repowering bonus, the legislator has revised the pre-requisites and the feed-in tariff level. Compared to the previous regulation, this adjusted bonus may constitute a significant contribution to the replacement of old systems, because this regulation, particularly in comparison to the previous EEG 2004, no longer extends the duration of 24

2 the initial feed-in tariff, but increases it by 0.5 ct/kwh. An outline of the individual feedin tariffs for wind, solar and biomass can be found in the tables of this text. The feed-in tariffs for offshore systems were also raised considerably. With 13 ct/kwh, the initial feed-in tariff is still significantly higher than the initial feed-in tariff for onshore wind turbines. Whether this dramatic increase in the offshore feed-in tariff will now also result in the construction of a large number of systems remains to be seen, because the subject of offshore has not caught on particularly quickly in the past despite far-reaching political concessions, e.g. regarding grid connection costs. Solar In future, with regard to the feed-in tariff for electricity from solar radiant energy, the only differentiation made will be between so-called ground mounting systems and building mounting systems. The special regulation for facade mounting systems was removed, and not replaced. From now on, the feed-in tariff for ground mounting systems is regulated in 32 EEG 2009, and for building mounting systems in 33 EEG The dispute surrounding the previous EEG 2004, as to whether buildings on which PV systems are installed Biomass feed-in tariff Basic feed-in tariff for new and old systems¹ must also have been built primarily for other purposes than that of generating electricity from solar radiant energy, is henceforth regulated explicitly in this regard in 33 para. 3 EEG Biomass The feed-in tariff regulations for biogas systems have become very complicated. The numerous newly-introduced bonuses are presumably intended as compensation for the fact that the RRM bonus (RRM = renewable raw materials) introduced in EEG 2004 was not significantly increased despite the sharp rise in the prices of raw materials. It is questionable as to whether the multitude of introduced bonuses will still be manageable in practice, also from the point of view of the grid operators. Thus, the greatest potential for the expansion of renewable energy use remains in the generation of electricity from onshore wind turbines and, where appropriate, in so-called repowering. Legal obligation <= 150 kw <= 500 kw <= 5 MW ct/kwh (+ 1 ct/kwh)* 9.18 ct/kwh 8.25 ct/kwh Emissions reduction bonus new systems 1.0 ct/kwh 1.0 ct/kwh new old systems 1.0 ct/kwh 1.0 ct/kwh RRM bonus² - biogas for new and old systems 7.0 ct/kwh 7.0 ct/kwh 4.0 ct/kwh (+ 1 ct/kwh)* (+ 1 ct/kwh)* Landscape conservation bonus biogas new for new and old systems Liquid manure bonus biogas new for new and old systems 4.0 ct/kwh 1.0 ct/kwh Technology bonus (system technology innovation) new systems old systems Technology bonus (gas feed-in) new systems Depends on the processing system 0,5 ct/kwh old systems 3 CHP bonus new systems 3.0 ct/kwh 3.0 ct/kwh 3.0 ct/kwh old systems 4 0/2/3 ct/kwh 0/2/3 ct/kwh 0/2/3 ct/kwh Degression of basic feed-in tariff and bonuses 1 % (- 0.5 %)* 1 % (- 0.5 %)* 1 % (- 0.5 %)* * In comparison to EEG 2004 For old systems, the previous feed-in tariff regulations still apply, unless otherwise specified in the table. Thus, for instance, the technology bonus as per 8 para. 3 EEG 2004 still remains for dry fermentation. ¹ Old systems up to 150 kw: 27 para. 1, no. 1, EEG 2009, old systems above 150 kw: 66 EEG 2009 in conjunction with 8 EEG 2004 ² RRM = renewable raw materials 3 Old systems: 66 EEG 2009 in conjunction with 8 para. 4 EEG Depending on the CHP (combined heat and power) system, EEG 2004 or EEG 2009 applies. In 4 para. 2 EEG 2009, the German legislator has explicitly stipulated that the provisions of the EEG may not be deviated from at the expense of the system operator or the grid operator. This is the legislator s response to a ruling made by the German Federal Court of Justice in 2007, according to which, under the previous legal situation, deviation from the grid operator s obligation to bear the costs of expanding its grid at the expense of the system operator was indeed possible, not with pre-formulated agreements, but certainly with individual agreements. This will no longer be possible in future. Connection obligation and grid expansion obligation According to 6 no. 1 EEG 2009, system operators are obliged to equip systems which have a capacity of more than 100 kw with a technical or operative mechanism, which can be accessed by the grid operator, for remote-controlled reduction of the feed-in power in the event of grid overload, and for querying the respective actual feed-in power. In addition, according to 6 no. 2 EEG 2009, operators of wind turbines must ensure that a wind turbine provides the previously mentioned system services. It is difficult to see why all operators of systems above 100 kw will soon need to have technical mechanisms for protection against grid overloads, because there are only very few overloaded grid areas in Germany. Worse still are the legal consequences incurred if the connection requirements as per 6 EEG 2009 are not adhered to: In 16 para. 6 EEG 2009, it is stipulated that no entitlement to the feed-in tariff shall apply if a system operator does not fulfil the obligations specified in 6 EEG This is sure to be one of the regulations which will often occupy the courts in future. One new aspect is that grid operators will in future be obliged to optimise, strengthen and expand their grids in accordance with the current state of technology. This goes far beyond the previous legal situation, because to date, grid operators have only had to maintain and expand their grids in accordance with the generally recognised rules of technology, a minimum standard. There ensues a significant improvement in favour of the system operators, because in future, the excuse that the corresponding technical equipment cannot be provided for one s own grid operation will no longer hold water in consideration of the explicit wording of 9 para. 1 EEG Feed-in management The regulations for feed-in management have also been revised in 11, 12 EEG One positive development is that a so-called hardship case regulation will apply as of 01/01/

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4 Solar energy feed-in tariff <= 30 kw kw 100 MW 1 MW > 1 MW Ground mounting ct/kwh ( ct/kwh)* Degression (2010) 10 % (6.5 %)* Building mounting ct/kwh ct/kwh ct/kwh ct/kwh (- 1.4 ct/kwh)* ( ct/kwh)* ( ct/kwh)* ( ct/kwh)* Degression (as of 2011) 8 % 8 % 10 % 10 % (6.5 %)* (6.5 %)* (6.5 %)* (6.5 %)* Degression for all systems as of % (6.5 %)* * In comparison to EEG 2004 Wind energy feed-in tariff Onshore Offshore Initial feed-in tariff 9.2 ct/kwh ( ct/kwh)* Basic feed-in tariff 5.02 ct/kwh ( ct/kwh)* new systems 0.5 ct/kwh ¹ System service providers new old systems 0.7 ct/kwh (for 5 years) Repowering changed 0.5 ct/kwh ¹ Degression 1.00 % (- 1 %)* Initial feed-in tariff 13 ct/kwh ( ct/kwh)* So-called sprinter feed-in tariff new 2 ct/kwh Basic feed-in tariff 3.5 ct/kwh ( ct/kwh)* Degression 5 % p.a. as of 2015 (+ 3 %)* * In comparison to EEG 2004 ¹putting into operation by 31/12/2015 a generator, and what in the immediate vicinity actually means. This regulation applies not only to operators of systems which are commissioned in the period beginning on 01/01/2009, but also to existing systems. Operators of these old systems will reassess and, if applicable, revise the billing for their feed-in tariff with effect as of 01/01/2009 if they have commissioned several generators within one year. Presumably, some operators of old systems will soon receive a lower feed-in tariff, but it cannot be ruled out that others are celebrating an unexpected financial windfall. Thus, on the whole, the 2009 amendment to the German EEG has upsides and downsides. The changes to the feed-in tariff for wind energy are certainly positive, those for biomass are tolerable, and those in the field of solar radiant energy are negative. Y Andreas Schäfermeier A discussion of the new Renewable Energy Heating Act of the federal government of Germany will follow in Sun & Wind Energy 5/2008. This stipulates that the grid operator is obliged to offset the feed-in tariffs and thermal yields which have not arisen due to feed-in management less the saved expenditure. Direct sales After interim restrictions in the government draft of EEG 2009, direct sales, i.e. the sale of electricity at freely negotiable prices, remain possible according to 17 EEG It is important that the grid operator is notified of the direct sales before the start of the respective preceding calendar month. One problematic aspect is that a breach of the direct sales regulations, regardless of whether or not any culpability is involved, invalidates the entitlement to the feed-in tariff as per 16 para. 4 EEG. This rigid legal consequence is also particularly unreasonable considering that breaches of the load balancing regulations on the part of grid operators only entail a fine ( 62 para. 1, no. 1, EEG 2009). Combination of several systems According to 19 para. 1 EEG, several systems, regardless of the ownership structures and solely for the purpose of determining the feed-in tariff for the respective generator which was most recently commissioned, are considered one system if they are situated on the same site or are otherwise in the immediate vicinity of each other, they generate electricity from the same type of renewable energy sources, remuneration for the electricity which they generate occurs on the basis of the system output, and they were commissioned within 12 successive calendar months. This regulation is of key importance to operators of PV and biogas systems, because it is often the case that several PV systems are operated on one site or in close proximity to each other, and that operators of biogas systems have added combined heat and power plants at locations with substantial heating requirements so as to exploit the generated heat more effectively. Despite the apparently clear wording, this regulation raises a number of questions. For instance, it is unclear whether technical installations which are far removed from the combined heat and power plant belong to the system, whether systems which have since been refurbished were commissioned in the original year or in the refurbishment year, whether the regulation applies accordingly when a system is extended by adding Andreas Schäfermeier, lawyer, is a member of the legal advisory board of the German Wind Energy Association (BWE), and acts as chairman of the legal advisory board of the German Biogas Association (FvB). Andreas Schäfermeier Engemann & Partner Kastanienweg Lippstadt Germany Phone: +49/2941/ ; Fax: +49/ kanzlei@engemann-und-partner.de Website: 27

5 Bright prospects for students The University of New South Wales in Sydney has built up an extensive body of experience and knowledge that has underlain the development of undergraduate and postgraduate teaching activities in the sector of renewables. gan in In addition to the usual engineering preparation topics in science and mathematics, the programme encompasses photovoltaics science and technology development, manufacturing methods, applied photovoltaics systems engineering, system maintenance, reliability, lifecycle analysis and energy policy. Students also have access to modules on broader renewable energy aspects, particularly solar thermal, wind and biomass energy engineering and solar architecture and building design. One attractive aspect of the Bachelor of Photovoltaics and Solar Energy Engineering programme is the practical group project undertaken in second year. Topics for these projects have included wafer and thin film solar cells and equipment and developing country aspects of renewable energy. The latter has been the most popular topic, with groups in different years concentrating on Nicaragua, Nepal and Vanuatu. In 2008, groups of students are supervised on visits to Nepal and the island of Tanna, Vanuatu, to help with provision of basic energy and water services. Four multinational photovoltaics companies, BP Solar (Germany), CSG Solar (Germany), Suntech Power (China) and REC (USA), offer cooperative scholarships for students in this programme. Winners are sponsored during their studies and work with the companies for periods while enrolled at UNSW. Until 2007, the Master of Engineering Science postgraduate coursework programme has been of two semesters duration. As a response to the rapid growth of photovoltaics manufacturing, particularly in Asia, the programme has been extended to three semesters, starting from 2008 and will focus primarily on photovoltaics manufacturing technology. Further, all the UNSW engineering postgraduate coursework programmes will include an emphasis on engineering management. Asia-Pacific partnership on clean development and climate Proud winners of a race to construct and demonstrate a working stand-alone photovoltaic system at the Indigenous Australian Engineering Summer School, hosted by UNSW Engineering Faculty in Photo: UNSW The Pluto technology from Suntech Power, BP Solar s Saturn cells and CSG Solar s crystalline silicon on glass, all have their roots in research carried out at the University of New South Wales (UNSW) in Sydney, Australia. UNSW has hosted photovoltaics research activities since the 1970s, with an almost complete focus on crystalline silicon. Against this background UNSW has also established undergraduate and postgraduate programme for Solar Energy and Renewable Energy Engineering. The former Key Centre for Photovoltaic Engineering was started in 1999, its main initiative was the establishment of the world s first specialist undergraduate degree in photovoltaics and solar energy. Administratively, the educational and research activities, the latter dominated by the ARC Photovoltaics Centre of Excellence, were incorporated, on 1 January 2006, into a new School, the School of Photovoltaic and Solar Energy Engineering. Cooperation with multinational PV companies Teaching of the four-year Bachelor of Photovoltaics and Solar Energy Engineering programme be- The school applied during 2006 for sponsorship funding from the Australian government under the Asia-Pacific Partnership on Clean Development and Climate (APP) programme to bring students from the Asia-Pacific region, specifically China, India and South Korea, to study photovoltaics engineering at UNSW. APP countries represent around half the world s emissions, energy use, gross domestic product and population. In January 2007, APP programme investment of 5.2 million Australian Dollar was approved for this project. This significant grant will support study at UNSW by five international PhD students, starting in 2008, two cohorts of up to forty Master of Engineering Science (MEngSci) students, starting 2008 and 2009 (50 % fees paid by the sponsor), and three cohorts of up to 20 third and fourth year undergraduate students, starting 2008, 2009 and Prospects for the future are extremely bright. The new Australian federal government has made some extremely encouraging statements and promises about renewable energy and climate change. There has been a significant mood swing in the Australian populace. Additionally, several Asian governments are strongly encouraging rapid expansion of their renewable energy equipment manufacturing industries and consequently, at least for the photovoltaics manufacturing, the skills and graduates of the School s Centre of Excellence are in great demand. Richard Corkish The author is head of School of Photovoltaic and Renewable Energy Engineering, University of New South Wales, Australia. Further information: 28

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