Auf in neue Märkte! Exportinitiative Energie Biogas in future energy systems Example Germany Dr. Stefan Rauh, 21. November 2017, Warschau

Main topics German Biogas Association Status Quo: Biogas in Germany Development of the legal framework New challenge: flexible energy production Best practice examples Conclusion and outlook

The German Biogas Association 4900 members throughout Germany Operators of biogas plants Technology manufacturers Research institutions Public authorities Feedstock providers Interested individuals 40 employees dedicated to the topic Main objectives: promotion of the biogas sector Definition of legal framework and technical standards Exchange of information Lobbying on federal, state and EU level

Development of German biogas sector

Installed capacity vs. Workrelevant capacity

Biogas Sector Statistics in Germany at a Glance 2016* Forecast 2017** Number of biogas plants (biogas plants with biomethane injection) 9,209 (193) 9,346 (197) Installed electric capcity in MW 4,237 4,497 Gross electricity production in TWh per year 32.8 33.0 Households supplied with biogas-based electricity in millions 9.4 9.4 CO 2 reduction by biogas in million tonnes 19.8 19.9 Turnover in Germany in Euro 9.4 Billion 9.4 Billion Jobs in the biogas sector 46,000 46,000 Fachverband Biogas e.v. / German Biogas Association * Own extrapolation based on country data / plant register BNetzA ** Based on a expert survey / plant register BNetzA

Possibilities for the use of biogas Focus in Germany

Main topics German Biogas Association Status Quo: Biogas in Germany Development of the legal framework New challenge: flexible energy production Best practice examples Conclusion and outlook

Development of the Renewable Energy Act EEG (2000-2017) Consistent fee for 20 years Priority connection 250 new plants a year EEG 2000 EEG 2004 Bonus for energy crops Bonus for using heat 450 new plants a year Bonus for new techniques Bonus for emission reduction Bonus for manure 1000 new plants a year EEG 2009 EEG 2012 New system New requirements on efficiency and ecology 340 new plants a year EEG 2017 < 150 new plants a year EEG 2014 < 150 new plants a year

NEW EEG 2017 (as of 1 st of January 2017) Like EEG 2014 - no more bonus for energy crops and manure, biogas upgrading but no heat utilization obligation Like EEG 2012 and EEG 2014: Flexibility and direct selling as a core task (market premium, flexibility premium) Max. 150-200 MW gross additional plants each year Tender process for plants bigger than 150 kw Follow-up-regulation for existing plants: possible participation in the tender process (for 10 more years) Limit in the tender process New plants 14,88 ct/kwh Existing plants 16,90 ct/kwh Special feed-in-tariff for: small manure plants: 23,14 ct/kwh waste fermentation plants: 14,88 ct/kwh

Results of the first tender process Low participation rate (77% of tendered volume) High rate of excluded tenders Few new projects many existing plants successful All kinds of project types: energy crops, manure, waste, small, big But: limited fee as problem Submittend tenders 33 40,9 MW inst. Excluded tenders 9 13,4 MW inst. Successful tenders 24 27,6 MW inst. Source: BNetzA 2017

Main topics German Biogas Association Status Quo: Biogas in Germany Development of the legal framework New challenge: flexible energy production Best practice examples Conclusion and outlook

Structure of the German electricity production The electricity mix in Germany in 2015 With almost 196 Billions KWh renewable energies supplied 30,1% of the German gross electricity production and are therefore the most important energy source. Others Hydro 31,5 bi. KWh 19,3 bi. KWh 4.8% 3.0% Natural gas 59,6 bi. KWh 9.1% Hard coal 118,0 bi. KWh 18.1% Nuclear Energy 91,8 bi. KWh 14.1% Brown coal (lignite) 155,0 bi. KWh 23.8% Renewable energies 195,9 bi. KWh 30,1% Photovoltaic 38,4 bi. KWh 5.9% Biomass 50,0 bi. KWh 7.7% Wind (offshore) 8,7 bi. KWh 1.3% Wind (onshore) 79,3 bi. KWh 12.2% more than 50% of the EE are fluctuating Flexibility instead of baseload. Double overbuilt Does an operator want to produce 100 kw of electricity on average, he has to install 200 kw of capacity at the plant Source: Renewable Energy Agency As of 2.2016

Capacity [GW] Flexibility instead of base load 20 % Renewable Energy Sources 40 % Renewable Energy Sources With increasing share of RES base load loses importance Flexible systems fill the valleys of the wind and sun 80 % Renewable Energy Sources CHP with bioenergy & natural gas New role of biogas red Demand (2010) green Production Wind & Solar

Heat demand in kw New role on the electricity market as problem for heating systems? Important aspects for successful projects Annual heat demand Peak heat demand Seasonal heat demand Load duration curve Calculation of heat losses Length of the piping system (< 4 km) 1800 Insulation of the pipes Numbers of heat exchangers 1600 1400 peak load by wood chip heating facility 1200 Possible Problem Heating deficit in times of CHP downtime 1000 800 600 base load unused capacity 400 200 thermal capacity biogas plant 0 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 Operating hours

Volume heat storage in m³ Buffers and peak load boilers as solution Peak load boilers Or Long time period (seasonal demand) wood chip boilers Short time period (daily demand) gas, oil, biomethan boilers Buffers for fluctuating production 400 350 100 kw plant 500 kw plant 300 250 200 150 100 50 0 30% 60% 90% Used Heat

Annual cost heat storage in Buffers and peak load boilers as solution Peak load boilers Or Long time period (seasonal demand) wood chip boilers Short time period (daily demand) gas, oil, biomethan boilers Buffers for fluctuating production 35.000 100 kw plant 500 kw plant 30.000 25.000 20.000 15.000 10.000 5.000 0 30% 60% 90% Used Heat

Main topics German Biogas Association Status Quo: Biogas in Germany Development of the legal framework New challenge: flexible energy production Best practice examples Conclusion and outlook

Best Practice Example: Natural Energy Glemstal Natural Energy Glemstal is located in Baden-Wurttemberg. The first district heating network of Natural Energy Glemstal was put into operation in 2007. Since then the heating networks in Schwieberdingen and Hemmingen were continuously expanded. The bioenergy plant has three essential components: 1. Two regional locted biogas plants 2. Central located: Biomethan CHP, pellet boiler, wood chip boiler 3. Village heating grid Source www.naturenergie-glemstal.de/

Best Practice Example: Natural Energy Glemstal Technical details Electricity production: 15.000.000 kwh of electricity is generated annually Two regional plants 9.000.000 kwh One biomethan chp 6.000.000 central located Heat production: 20.000.000 Biogas chp plant 1 kwh of heat is generated anually Biogas chp plant 2 Central biomethan chp Wood boiler Pellet boiler Natural gas boiler Source www.naturenergie-glemstal.de/

Best Practice Example: Natural Energy Glemstal Source www.naturenergie-glemstal.de/

Main topics German Biogas Association Status Quo: Biogas in Germany Development of the legal framework New challenge: flexible energy production Best practice examples Conclusion and outlook

Conclusions and outlook Germany is a frontrunner in renewables Biogas is as an all-rounder and a key in the energy mix (reduction of emissions, flexible electricity production, heat/cold, mobility, fertiliser) Main trends in Germany: Feedstock: manure/waste - no energy crops Flexibility: balancing the fluctuating power generation Flexible electricity production as challenge for heat production Buffers and peak load boilers as possible solutions Many positive best-practice examples But: Future is not save Tender process and CO2-market as pillars for profitability

Thanks for attention 12.-14.12.2017 BIOGAS Convention & Trade Fair in Nuremberg Biogas Basics! Know-How Transfer! International Panel on Climate and Finance Workshop on waste digestion... www.biogas.org