Investing in the cleantech nation Germany

Transcription

1 Chris Schmidt - istockphoto Investing in the cleantech nation Germany Thomas Grigoleit Director Energy, Environment and Resources Christina Schön, Senior Manager Investor Support Services Ecosummit London, October 2014

2 Euro 2000 Germany vs. Romania 1:1

3 Euro 2000 England vs. Germany 1:0

4 Euro 2000 Portugal vs. Germany 3:0

5 14 years later Source: Agência Brasil

6 Renewables = THE game changer Total capacity of renewables (End 2000) ~ 30,000 installations Wind energy PV Biomass The circle diameter is proportional to the electrical capacity Sources: 50HertzT, TenneT, Amprion, TransnetBW, internal data

7 Renewables = THE game changer Renewables = THE game changer Total capacity of renewables (End 2005) ~ 221,000 installations Wind energy PV Biomass The circle diameter is proportional to the electrical capacity Sources: 50HertzT, TenneT, Amprion, TransnetBW, internal data

8 Renewables = THE game changer Total capacity of renewables (End 2010) ~ 750,000 installations Wind energy PV Biomass The circle diameter is proportional to the electrical capacity Sources: 50HertzT, TenneT, Amprion, TransnetBW, internal data

9 Renewables = THE game changer Total capacity of renewables (End 2012) ~ 1,300,000 installations Wind energy PV Biomass The circle diameter is proportional to the electrical capacity Sources: 50HertzT, TenneT, Amprion, TransnetBW, internal data

10 The Energy Concept (2010) Main Objects Climate protection measures CO2 cuts vs % -80% Renewable share of Total energy consumption 18% 60% Electricity consumption 35% 80% Heat generation 14% 60% Energy efficiency measures Increase in energy productiveness 2.1% p.a. Reduction of energy consumption -50% (2050 vs. 2008) Reduction of electricity consumption -25% (2050 vs. 2008) Renovation rate 2% p.a. Reduction of energy for transportation -40% (2050 vs. 2005)

11 Energiewende in Germany Future electricity mix in Germany will be based on Wind and PV

12 Grid Parity = Competitiveness Competitiveness of solar = new business opportunities! Wattage PV Energy Own-Consumption of PV Energy Energy from grid Energy Demand Time of day 0h 3h 6h 9h 12h 15h 18h 21h 24h Notes: 1) Depending on size /type of system; Min. to max. tariff in 2013 of new EEG ) Depending on electricity retail price of respective utility company. 7 october,

13 Electricity generation in Germany Punctual overcapacities in electricity production through fluctuating RES Increasing volatility of electricity prices! Business case for storage? MW MW /MWh /MWh :00 00:00 02:00 02:00 04:00 04:00 06:00 08:00 10:00 12:00 14:00 16:00 18:00 20:00 20:00 22:00 22:00 Solar Solar Wind Non-Fluctuating Electricity generation in Germany June 16th ~34 GWp installed PV capacity *Source: EEX 2013 (

14 Energiewende Longterm scenario The E-Energy Vision for a Smart Grid Source: E-Energy Source: E-Energy

15 Germany Trade & Invest Germany Trade & Invest (GTAI) is the official foreign trade and inward investment promotion agency of the Federal Republic of Germany.

16 Germany Trade & Invest GTAI has two headquarters in Germany - and 50 locations worldwide. Chicago New York San Francisco Toronto Washington Buenos Aires Caracas Mexico City Santiago de Chile Sao Paulo Berlin Bonn Athens Brussels London Madrid Milan Paris Stockholm Tel Aviv Johannesburg Cairo Nairobi Tunis Dubai Istanbul Belgrade Budapest Bucharest Helsinki Kiev Moscow Prague Riga Warsaw Zagreb Bangkok Beijing Hanoi Hong Kong Jakarta Kuala Lumpur Mumbai New Delhi Seoul Shanghai Taipeh Tokyo Sydney

17 Investment Consultancy GTAI advices and supports foreign companies seeking to establish business in Germany. Our free of charge investment consultancy includes: Market and Industry Analyses Tax & Legal Framework Project Management Support Financing and Incentives Location Proposals Market Data Site Evaluation Contact to local Institutions Picture WoGi - Fotolia.com

18 Investor Support Services Our cross section team - Investor Support Services - adds key information regarding tax, legal and financial aspects to the project. Financing & Incentives Investor Support Services Tax & Legal Services Industry Teams Energy, Environment & Resources Chemicals & Healthcare Mechanical & Electronic Technologies Service Industries Picture Credits: BWE/Christian Hinsch; BMVBS/Amin Akhtar; Copyright Dreadlock/Fotolia; BSW/Paul Langrock; Brandon Rose, Reicher Fotolia.com

19 Investor Support Services Our Financing & Incentives Team assists you in finding suitable financing solutions for your investment project. INCENTIVES What financial support does Germany offer to foreign investors? How can I apply for incentives? Are there specific programs for start-up companies and for R&D?

20 Investor Support Services Our Financing & Incentives Team assists you in finding suitable financing solutions for your investment project. INCENTIVES What financial support does Germany offer to foreign investors? How can I apply for incentives? Are there specific programs for start-up companies and for R&D? Could you provide us with contacts to German banks and/or other financial partners? FINANCIAL PARTNERS How should we approach these partners?

21 Investor Support Services Our Tax & Legal Team assists you in understanding the tax and legal framework in Germany. INCORPORATION What is the procedure for setting up a company in Germany? Does my business acitvity require a specific license?

22 Investor Support Services Our Tax & Legal Team assists you in understanding the tax and legal framework in Germany. INCORPORATION What is the procedure for setting up a company in Germany? Does my business acitvity require a specific license? Are there local variations of the overall corporate income tax rate in Germany? Can you support us in identifying attractive locations? TAXATION

23 Investor Support Services Our Tax & Legal Team assists you in understanding the tax and legal framework in Germany. INCORPORATION What is the procedure for setting up a company in Germany? Does my business acitvity require a specific license? Are there local variations of the overall corporate income tax rate in Germany? Are there different employment models available? HR Can you support us in identifying attractive locations? How do I register employees with social security? TAXATION

24 Investor Support Services Case Study Incentives related input in a common case scenario. Project Details NN Ltd from UK starts a small scale production of batteries and related R&D activities in the federal state of Brandenburg. R&D project size: EUR 300,000 Production related investment: EUR 2.5 million Company size: small business (<50 employees)

25 Investor Support Services Case Study Incentives related input in a common case scenario. Project Details NN Ltd from UK starts a small scale production of batteries and related R&D activities in the federal state of Brandenburg. R&D project size: EUR 300,000 Production related investment: EUR 2.5 million Company size: small business (<50 employees) Input from the Financing & Incentives Team Research and calculation of available incentives culation resulted in: R&D funding of EUR 135,000 (45% grant) through Central Innovation Program SME Production set-up funding of EUR 1 million (40% grant) through Joint Task Program Incentives application support Contact establishment to a German Bank (Requirement for the granting of incentives)

26 Investor Support Services Testimonial: Germany's pioneering role in power electronics, it s highly interconnected R&D infrastructure and the pool of highly trained professionals provide the ideal basis for our production facility in Dresden (Taavi Madiberk, CEO)

27 Contact Thomas Grigoleit Director Energy, Environment and Resources T M Ms. Christina Schön Senior Manager Tax & Legal Services T F Supported by the Federal Ministry for Economic Affairs and Energy on the basis of a decision by the German Bundestag Germany Trade & Invest GmbH All information provided by Germany Trade & Invest has been put together with the utmost care. However, we assume no liability for the accuracy of the 7 october, 2014 information provided.

28 Investor References (1) Case Study: Leclanché SA (Willstätt, Baden-Wuerttemberg) Company profile Project data Founded in 1909, > 130 employees, HQ in Yverdon-les-Bains (Switzerland), listed at SIX Swiss Exchange (LECN) Became one of the leading producers of Li-cells in Europe since the integration of a Lithium-ion spin-off from Fraunhofer in 2006 Industry: Customized stationary storage systems for renewable energies, Demonstration project with 100 kwh storage capacity realized at a windpark in Germany Investment: > EUR 24 million Production area: 6,000 m² Fully automated production of high-end Lithium-ion cells; capacity of 1 million cells per year New employees: initially First contact with Germany Trade & Invest: March 2007 Factory opening: July 2012 Milestones Production location Oct First consultations with GTAI Oct Final site selection: Decision to expand on existing facility (former BASF production site for magnetic tapes) Nov Start of construction July Production ramp-up

29 Investor References (2) Case Study: Neovoltaic AG (Freiburg, Baden-Wuerttemberg) Company profile Founded 2010 in Austria Transformation into stock corporation in 2012 Industry: Photovoltaic for own-consumption Target group: Private households Products: Plug & Play PV kits including battery and smart home control software Close cooperation with LISHEN from China, one of the largest battery manufacturers in the World Project data Investment: EUR 0.2 million Product: PV systems including batteriy USP: PV leasing concept New employees: 6 initially, 15 by the end of 2012 First contact with Germany Trade & Invest: May 2012 German office openings: Freiburg (HQ) and Bonn Milestones Team & Products Dec 2011 Feb 2012 Feb 2012 May 2012 Jan Identification of Freiburg as initial target location for Germany Strategic alliance with LISHEN Battery from China Introduction of Smart Home Monitoring Platform Incorporation as neovoltaic AG Start of sales partner education and certification program for further expansion in Germany

30 Case Study: Skeleton Technologies from Estonia Germany's pioneering role in power electronics, it s highly interconnected R&D infrastructure and the pool of highly trained professionals provide the ideal basis for our production facility in Dresden (Taavi Madiberk, CEO) Founded 2009 in Estonia Industry: Energy Storage Target group: B2B Company profile Products: ultra-caps and tailor-made storage modules (5.4V to 128V) R&D location in Tartu, Estonia Manufacturing in Dresden, Germany Investment: EUR 10 million Production of ultra-caps Project data USP: Superior energy and power density New employees: 110 by the end of 2015 First contact with Germany Trade & Invest: Ecosummit 2012 German openings: Berlin (HQ) and Dresden (Production) Milestones Products Sep Company formation Jun 2012 Apr Introduction of new SkelCap series ultracapacitor family ranging from 2.47 to kw 3 Raised 2,2 million in Round A financing Start of production in Germany

31 Germany Trade & Invest Two headquarters in Germany - 50 locations worldwide Chicago New York San Francisco Toronto Washington Buenos Aires Caracas Mexico City Santiago de Chile Sao Paulo Berlin Bonn Athens Brussels London Madrid Milan Paris Stockholm Tel Aviv Johannesburg Cairo Nairobi Tunis Dubai Istanbul Belgrade Budapest Bucharest Helsinki Kiev Moscow Prague Riga Warsaw Zagreb Bangkok Beijing Hanoi Hong Kong Jakarta Kuala Lumpur Mumbai New Delhi Seoul Shanghai Taipeh Tokyo Sydney

32 Germany Trade & Invest Germany Trade & Invest is the foreign trade and inward investment promotion agency of the Federal Republic of Germany. The agency is promoted by the Federal Ministry of Economic Affairs and Energy on the basis of a decision by the German Bundestag. Germany Trade & Invest acts as an one-stop agency for international investors covering the entire investment decision process: Strategy Identification of business opportunities Competitor profiling Determination of projectspecific location factors Macro location analysis Decision Preparation and coordination of site visits Cost factor assessment Finance & incentives consulting Information on tax & legal issues Link to business partners, local authorities, and service providers Facilitation of administrative permits Support in negotiating with cooperation partners PR support Implementation Recruitment assistance

33 Don t hesitate to contact us! Energy, Environment and Resources Division: Europe Berlin - Headquarters Mr. Thomas Grigoleit Director Energy, Environment and Resources T thomas.grigoleit@gtai.com Mr. Heiko Staubitz Senior Manager Energy Storage and Smart Grid T heiko.staubitz@gtai.com Mr. Tobias Rothacher Senior Manager Photovoltaics and Storage T tobias.rothacher@gtai.com Mr. Henning Ellermann Manager Energy Efficiency T henning.ellermann@gtai.com Ms. Esther Frey Manager Wind T esther.frey@gtai.com Mr. Max Hildebrandt Manager Photovoltaics and Storage T max.hildebrandt@gtai.com Mrs. Flérida Regueira Cortizo Senior Manager Environmental Technologies T flerida.regueira@gtai.com Mr. David J.Warne Senior Manager Geo Energy & Resources T david.warne@gtai.com North America New York Office San Francisco Office Mr. Claus Habermeier Director New York, USA T: F: claus.habermeier@gtai.com Ms. Angelika Geiger Director San Francisco, USA T: F: angelika.geiger@gtai.com Asia-Pacific Beijing Office Tokyo Office Mumbai Office Mr. Markus Hempel China Representative Beijing, China T F markus.hempel@gtai.com Mr. Iwami Asakawa Japan Representative Tokyo, Japan T F iwami.asakawa@gtai.com Ms. Asha-Maria Sharma India Representative Mumbai, India T asha-maria.sharma@gtai.com 2014 Germany Trade & Invest All information provided by Germany Trade & Invest has been put together with the utmost care. However, we assume no liability for the accuracy of the information provided.

34 Electricity generation [GWh] Germany World Leader in Renewable Energies Strong governmental support leads to strong growth in all renewable energies Development of electricity generation from renewable energy sources in Germany StrEG: January 1991 March 2000 EEG: April 2000 Amendment to BauGB: November 1997 EEG: August 2004 EEG: January 2009 EEG: June Hydropower Windenergy Biomass * Photovoltaics * Solid, liquid, gaseous biomass, biogenic share of waste, landfill and sewage gas; Electricity from geothermal energy is not presented due to the negligible quantities of electricity produced; StrEG: Act on the Sale of Electricity to the grid; BauGB: Construction Code; EEG: Renewable Energy Sources Act; Source: BMU-KI III 1 according to Working Group on Renewable Energies-Statistics (AGEE-Stat); BMWI 2013

35 Offshore Wind in Germany Offshore wind development in Europe concentrates on Northern Europe. Source: RAVE, 2013

36 The German PV Market 2013 Germany is the largest PV market in Europe; Europe accounts for about 30% of the world market New PV Installations 2013 in MWp 1 German PV Market Newly installed PV power 3.3 GWp Rest of World 4900 Germany 3300 Number of newly installed PV systems 124,049 USA 4200 Total ~ 39 GWp Rest of Europe 8300 Total installed PV power 35.7 GWp Total number of PV systems installed 1.4 Million Japan 7000 PV electricity production ,7 TWh Share of final electricity consumption 5.8 % China FIT commitment for 52 GWp Sources: 1) Bundesnetzagentur, Chinese National Energy Agency/PV-Magazine, Solarserver, IHS, Bloomberg New Energy Finances; 2) Federal Network Agency 2014, BMU 2013; Fraunhofer ISE 2014

37 The German PV Market reached Grid-Parity in 2011 PV electricity costs now well below end-consumer electricity retail prices! Own-consumption of PV energy is a natural market driver for storage!! * Model calculation for rooftop systems, based on 802 kwh/kwp (Frankfurt/Main), 100% financing, 6% interest rate, 20 year term, 2% p.a. O&M costs Sources: Feed-in Tariffs: BMU 2013; System Prices: BSW 2013; Model Calculation: Deutsche Bank 2010; Electricity Prices : Eurostat 2013.

38 The Battery-Parity is coming With fruther increasing electricity prices and decreasing PV system costs, the business case for storage is becoming better and better * Model calculation for rooftop systems, based on 802 kwh/kwp (Frankfurt/Main), 100% financing, 6% interest rate, 20 year term, 2% p.a. O&M costs Sources: Feed-in Tariffs: BMU 2013; System Prices: BSW 2013; Model Calculation: Deutsche Bank 2010; Electricity Prices : Eurostat 2013.

39 Germany s nuclear power phase-out Due to the nuclear disaster in Fukushima in 2011, closure of nuclear power plants was brought forward from 2036 to out of 17 nuclear power plants were already shut down in : 17.6% nuclear power of total energy consumption (2010: 22.6%) In 2012: 99 TWh electricty produced which accounts for 16% of nuclear power! 2021 Hamburg Berlin 2021 Development of installed nuclear power plants capacity in MW 2 Cologne Frankfurt % of electricity generation (2010) Stuttgart Munich 1) Quelle: BMWi Die Energiewende in Deutschland, Februar ) Quelle: DAtF, 2012 Active nuclear reactor with date of scheduled closure Nuclear reactor already closed

40 Hybrid Power Plant Continuous Energy Supply Enertrag Hybrid Power Plant Sustainable and clean electricity & heat Hydrogen Grid Electricity Unused Electricity (Produced at Night) Production via Electrolysis Hydrogen 2 Cogeneration Plants Hydrogen Storage Electricity Variable Mixture Hydrogen Mixing Valve Hydrogen District Heating Heat Biogas (from Corn) Filling Station Biogas Storage Source:

41 The electricity grid in Germany: Bottlenecks ahead! New power structure in 2022 will lead to bottlenecks in Germany Offshore- Wind parks Power balance 2012 Power balance 2022 Source: Netzentwicklungsplan 2012

42 Energy Efficiency in Comparison Germany is among the world leaders in energy efficiency Source: ACEEE 2014

43 Building Energy Efficiency The next wave of newbuilt and retrofit innovation is coming Sources: Weber Haus, novonty fotolia.com

44 Vast Industrial Energy Efficiency Potential 93 billion EUR investment = 199 TWh economically attractive savings* Economically attractive energy savings potential in German industry in TWh with existing technologies. Source: Siemens 2013, * Economically attractive= IRR> 8%