FIT for Future - How a Feed in Tariff (FIT) and SDR s can boost the renewable energy sector

Transcription

1 FIT for Future - How a Feed in Tariff (FIT) and SDR s can boost the renewable energy sector

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3 Fossil Fuel based industrialisation 3

4 Fossil Fuel based industrialisation 4

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6 Source: Garve Scott-Lodge,

7 Nuclear power took off between 1970 and 1980

8 Production and distribution by the same companies

9 ...now unbundled

10 Big changes of the energy structure ahead Energy source to the power plant Power plant to the energy source

11 Participation triggers acceptence, acceptence triggers investments 11

12 Policy to accelerate development of RE Source: PWC 2010

13 EEG (Erneuerbare Energien Gesetz ) Renewable Energy Sources Act Came into force on 1st April 2000 Key points: Promotion and market launch of future-compliant technologies Guaranteed rates for renewable energy technologies (for 20 years) Grid operators are obliged to purchase the electricity and feed into their grids Costs incurred by feed-in tariffs Borne by the consumers through the electricity price Source: csr news.net

14 Source: Rolf Disch

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16 Source: dpa, German press agency

17 Source: Alpha Ventus April 2010

18 Results of the EEG In 2010 investments increased by 30% (towards the previous year) and reached is maximum state of 27 billion Euro people were employed in the field of the renewables 2009 Savings of 60 Mio. t of greenhouse gas emissions (Because of plants that are paid through the EEG) The amount of renewable energy installed went up to 20% of the total electricity share only within ten years

19 Energy Mix in Germany Source: IFOK

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21 Reduction of tariffs in Germany Source: Fulton et al. 2011

22 Cost reduction of Solar PV in Germany (roof mounted up to 100 KW) Source: BSW

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24 Source: Venture Beat 24

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26 Nuclear Phase Out (AtG) Update of the German Feed in tariff Systems (EEG) Unbundling of energy production, transmission and distribution (EnWGÄndG) Law for accelerating the grid expansion (NABEG) and improved approval procedures Update of the energy and climate fund (3 billion Euros from ETS scheme) Law to encourage cities and municipalities (repowering, PV on buildings, improved CHP etc.)

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30 Main drivers of energy transition in Germany jobs and economic participation effect public pressure due to threats of climate change and nuclear energy Increasing recognition of renewable energy capacities National and international targets Expected increasing costs for fossil fuels due to ETS and carbon taxes energy dependency

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32 Renewable Energy development in the world

33 Feed in tariffs in 1995 Source: IFOK/REN 21

34 Feed in tariffs in 2000 Source: IFOK/REN 21

35 Feed in tariffs in 2010 Source: IFOK/REN 21

36 Source: GSR/REN 21

37 New power capacity added worldwide :

38 Source: REN 21 GSR 2011

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40 Implement regulatory frameworks consequently Strengthen renewable heating sector Research and Development (and its political support) Binding target setting on regional, national and international level Abolishment of all subsidies for fossil fuel (and nuclear) Acceleration of administrative processes and infrastructure measures

41 So how to ensure that Fits can be implemented in developing countries where the costs can not (entirely) be borne by the people 41

42 National FIT Funds in developing countries State budget, certain share of electricity price Global FIT Fund Money Money National FIT Fund Money Payment -by performancefor producers under the feed-in tariff scheme Central banks 42

43 The green climate fund The Fund...will promote the paradigm shift towards low-emission and climate-resilient development pathways by providing support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change... (Report of the Transitional Committee) 43

44 Big questionmark... How will the money be distributed (downstream of resources) Where does the money come from? (upstream) 44

45 The Idea We need a genuinely innovative solution that could pre-distribute new funds instead of redistributing existing funds The new funds have to be filled with new, interest free and nonrepayable and global money Using SDRs, the IMF was able to create a huge amount of money to combat the international financial crisis in 2009 If the IMF can combat the financial crisis with newly created money, why should it not deal with the challenges of climate change in the same way? 45

46 Thomas Edison 1920: We are like tenant farmers chopping down the fence around our house for fuel when we should be using Natures inexhaustible sources of energy sun, wind and tide.... I'd put my money on the sun and solar energy. What a source of power! I hope we don't have to wait until oil and coal run out before we tackle that 46

47 Thank you very much for your attention! 47

48 Dipl. Ing. Director Climate Energy