Opportunities in Renewable Energies Franzjosef Schafhausen Deputy Director General Energy Transition Federal Ministry of the Environment, Nature Conservation and Nuclear Safety, Berlin World Renewable Energy technology Congress Delhi, 27 th September 2013
The Decisions The BMU supports the energy policy framework of the federal government Federal government s energy concept of 28 September 2010 Energy policy of the federal government for the transformation of the German energy system Comprehensive goals and measures in the areas of energy mix, energy efficiency, grids, mobility and greenhouse gas reduction Proportion of gross final consumption of energy comprised by renewable energies 18% by 2020, 30% by 2030, 45% by 2040 and 60% by 2050 Decisions of the federal government regarding acceleration of the energy transition of 6 June 2011, including: Faster expansion of renewable energies through reform of the Renewable Energy Sources Act (EEG), including improved market and system integration of renewable energies Onshore and offshore wind energy as central components Grid expansion and modernisation Continuous monitoring of progress in the energy transition Source: BMU (2013) 2
Six reasons for altering the energy system Phasing out of nuclear power Reassessment of nuclear power following the nuclear disaster in Fukushima in 2011 Medium-term compensation of production capacities of the German nuclear power plants through their shutdown by 2022 as well as the expansion of renewable energies Climate protection / conserving fossil fuels Securing Germany s position as global leader in climate protection: targeted reduction in greenhouse gases of 80-95% by 2050 Expansion of renewable energies to achieve climate protection goals: Approx. 80% of all greenhouse gas emissions occur in the energy sector Climate protection commitments promote growth dynamics in renewable energies Sustainable energy supply Consideration of economic, environmental and social aspects in energy production Source: BMU (2012) 3
Six reasons for altering the energy system Security of supply Above-average import dependence of the German economy and increasing world market prices for fossil fuels: Investments in renewable energies reduce the dependency on energy imports in the long term Competitiveness, added value and jobs High investment potential Renewable energies are the growth engine of German industry: 378,000 new jobs (as of 2012) since 1990 in the renewable energies sector Technological Innovation Citizen participation Chance for more citizen participation through communal energy cooperatives and decentralised supply structures with renewable energies Source: BMU (2012) 4
Targets Climate Renewables Efficiency Green house gases power Primary energy Primary energy power Energy productivity transport buildings (vs. 1990) 2020-40 % 35% 18% - 20% -10% -10 % Double 1 ---2 % 2030 2040-55 % 50% 30% - 70 % 65% 45% increase to 2,1%/a Refurbisment p.a. 2050-80-95% 80% 60% - 50% -25% - 40 %
Expansion plans of the European Member States Renewable energies as share of final energy consumption in 2020 as per EU directive and according to the National Action Plans (NREAP) of the EU Member 60 States 50 40 40.0 38.0 34.2 31.0 30.4 25.3 25.0 24.0 24.0 23.0 22.7 19.6 18.0 17.0 16.0 16.0 15.5 15.0 14.7 14.5 14.0 13.5 13.0 13.0 11.0 10.2 50.2 30 20 10 RE as share of final energy consumption 2005 Planned RE expansion as per NREAP Sweden Latvia Finland Austria Portugal Denmark Slovenia Estonia Lithuania Romania France Spain Germany Greece Italy Bulgaria Ireland Poland UK Hungary Netherlands Slovakia Czech Republic Belgium Cyprus Luxembourg Malta % of final energy consumption 0 Source: ECN (2011) 6
Previous successes: Historical development of renewable energies in Germany Since 1990, the installed power capacity from renewable energies has increased many times over 80,000 70,000 MW el 60,000 50,000 40,000 30,000 20,000 Biomass Photovoltaics Wind power Hydropower 10,000 0 Source: BMU (2013) 7
Renewable energies as a proportion of final energy consumption Renewable energies already account for a significant proportion of Germany s final energy consumption (2012 data, in %) 25.5 16 3.7 0.8 1.8 In 2012, final energy consumption in Germany was 8,998 PJ. 37 regenerative 12.6 3.8 1.4 8.3 1.1 0.6 Hard coal Lignite Mineral oil/ Fuel oil Natural gas Electricity (without renewables) District heating Hydropower Wind power Biomass PV Geothermal 1,133.7 PJ were provided by renewable energy sources. This corresponds to a share of 12.6%. Source: Estimation dena based data by ARGE (2013) 8
Renewable shares in the individual sectors In 2012, renewable energies produced 136 TWh of electricity in Germany 30.0% 15.6% Hydropower Photovoltaics 33.8% 136 TWh 20.6% Wind energy (on and offshore) Biomass* *comprises biogas, biogenic solid fuels, sewage gas, landfill gas, biogenic proportion of waste Geothermal energy accounted for 0.02% in 2012. Source: BMU (2013) 9
Renewable shares in the individual sectors In 2012, renewable energies produced 144.3 TWh of heat 1.9% 8.8% 4.2% 4.9% Solid biomass (total)* Liquid biomass (total) * comprises: biogenic solid fuels (household, industry, CHP), biogenic proportion of waste ** comprises: biogas, sewage gas, landfill gas *** comprises: deep geothermal energy, near surface geothermal energy 80.3% 144.3 TWh Biogas** Solar thermal energy Geothermal energy (total)*** Source: BMU (2013) 10
Installed wind capacity in 2012: 32 GW 45.000 Stromerzeugung [GWh] installierte Leistung [MW] 2012: 31.315 MW 28.000 40.000 24.000 35.000 [GWh] 30.000 25.000 20.000 StromEinspG: Januar 1991 - März 2000 Novelle BauGB: November 1997 EEG: April 2000 20.000 16.000 12.000 [MW] 15.000 10.000 5.000 0 71 100 275 600 909 1.500 2.032 2.966 4.489 5.528 9.513 10.509 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 15.786 EEG: August 2004 18.713 25.509 27.229 EEG: Januar 2009 30.710 39.713 40.574 38.639 EEG: Januar 2012 37.793 48.883 46.000 8.000 4.000 0 Quellen: C. Ender, Internetauftritt Deutsches Windenergie-Institut (DEWI): "Windenergienutzung in Deutschland - Stand: 31.12.2012"; StromEinspG: Stromeinspeisungsgesetz; EEG: Erneuerbare-Energien-Gesetz; BauGB: Baugesetzbuch; 1 MW = 1 Mio. Watt; 1 GWh = 1 Mio. kwh; BMU - E I 1 nach Arbeitsgruppe Erneuerbare Energien-Statistik (AGEE-Stat); Hintergrundbild: BMU / Christoph Edelhoff; Stand: Februar 2013; Angaben vorläufig BMU - E I 1 Erneuerbare Energien in Deutschland 2012 11
Installed PV capacity in 2012: 32 GW Energiebereitstellung [GWh] 2012: 32.643 MW p 32.000 installierte Leistung [MWp] 32.000 28.000 28.000 24.000 24.000 [GWh] 20.000 16.000 20.000 16.000 [MW p ] 12.000 12.000 8.000 4.000 0 1 2 3 6 8 11 16 26 32 42 64 76 162 313 556 1.282 2.220 3.075 4.420 6.583 11.729 19.340 28.000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 8.000 4.000 0 Quelle: BMU - E I 1 nach Arbeitsgruppe Erneuerbare Energien-Statistik (AGEE-Stat); 1 GWh = 1 Mio. kwh; 1 MW = 1 Mio. Watt; Hintergrundbild: BMU / Bernd Müller; Stand: Februar 2013; Angaben vorläufig BMU - E I 1 Erneuerbare Energien in Deutschland 2012 12
Greenhouse gas emissions avoided In 2012, the use of renewable energies enabled significant greenhouse gas savings to be achieved (in comparison to the conventional energy mix) Hydropower Fuels 4.7 mill. t Wind energy Biomass Heat 40 mill. t Electricity 100.8 mill. t 0 20 40 60 80 100 120 mill.t PV Geothermal energy Solar thermal energy Biofuels Source: BMU (2013) 13
Composition of the electricity price The EEG apportionment is ONE but not THE significant cost factor in the composition of the electricity price* 0.87% 0.44% 7.30% 5.91% Energy procurement 28.52% Network charges, measurement, calculation, VAT EEG apportionment 18.35% CHP surcharge 16.00% 22.61% Offshore liability apportionment Electricity tax Concession fee * Household electricity price: 28.70 ct/kwh (2013) Source: ÜNB, BNetzA (2013) 14
Investments paid off: PV costs came down more than 50% since 2006 Since of 1 April of 2013 Germany pays only between 0,11 and 0,16 /kwh for PV Dünnschicht Source PVexchange
Market integration of Renewable Power In summer 2011 Germany started a transition process numerous things and structures are changing The EEG structure (20 year guaranteed feed-in-tariffs, principle of priority feed in) has been very successful in the initial phase By the end of 2012 we had 23 % of renewable power now the integration of renewable power into the energy system and the markets is the issue renewable power generation has to become more cost efficient Consensus on the need to amend the EEG but the is the political will to keep basic structures Some elements like the market premium could be used But it is not only a challenge for the renewables the conventional power generation has to change too more flexibility and higher efficiency 16
Market integration of Renewable Power In addition a lot of so called flexibility options on the supply side as well as on the demand side have to be used The Winterreserve is an interim solution to build a bridge to collect more information and experiences to be able to develop the existing structures In order to safeguard the power supply security during the transition process a stratecic reserve alongside the normal power market should be developed and implemented 17
Enhancing Flexibility I 20% RE 35% RE 50% RE 65% RE 80% RE StorageConsumptionProduction Grids Expand grids for large-scale power exchange Flexible thermal power plants Lower must-run capacity Limit wind and PV in event of excess Expand load management and flexible demand Use power-to-heat and RE excess Pumped storage Germany/Alps/Norway Power to gas 18
Enhancing Flexibility II Grids - Optimise electricity grid - Construction of new grid - Grid management at EU level Storage - Pumped storage Germany/Alps/Scandinavia - Use of electricity for gas production (power-to-gas) - Use/storage of electricity in heat (power-to-heat) - Other storage Production - Upgrading of existing power plants (retrofitting) - Construction of new, highly flexible thermal power plants - Integration of emergency power systems into the market - Safeguarding capacity at EU level - Electricity market-led operation of RE, CHP and biomass systems - Controlled capacity from more flexible power plants - System services independent of power plant - Gas production from biomass - Improved design of wind & PV systems Consumption - Feed-in management for wind & PV systems - Increase flexibility of demand (load management) 19
Economic Effects Let s take Renewables as an example 20
Jobs provided by renewable energies in Germany Over the years, renewable energies have led to an increase in jobs in Germany, particularly in the solar and wind sectors 140,000 120,000 No. of employees 100,000 80,000 60,000 40,000 119,500 124,400 128,900 85,700 101,100 117,900 125,000 100,500 2007 2011 2012 Source: BMU (2013) 20,000 0 49,200 10,300 14,200 13,900 Bioenergy Wind power Solar energy Geothermal energy 8,100 7,300 7,200 Hydropower 4,500 9,600 9,400 Research 21
Investment in renewable energies in Germany Tens of billions of euros have been invested in renewable energy systems for years 14 Investment in renewable energy systems in Germany (2012) 12 10 Photovoltaics: 11.2 billion Investment in billion Source: BMU (2013) 8 6 4 2 0 Wind power: 3.75 billion Biomass: 2.55 billion Solar thermal energy: 990 million Geothermal energy: 930 million Hydropower: 70 million 22
Investment in renewable energies in Germany The decline in investment in renewable energies projects is due primarily to the fall in system prices for PV installations Development of investments in renewable energy projects in Germany 30.0 25.0 20.0 26.4 in billion 15.0 10.0 22.0 23.2 19.5 5.0 0.0 Source: BMU (2013) 2009 2010 2011 2012 23
Research support for renewable energies Between 2004 and 2012, federal research expenditure has tripled in the renewable energies sector Federal expenditure on renewable energies research in mill. 180 160 140 120 100 80 60 50.2 85.8 81.2 81.3 98.5 109.6 120.2 129.4 154.5 40 20 0 Source: BMU (a) (2012) 2004 2005 2006 2007 2008 2009 2010 2011* 2012* * incl. EKF (Special Energy and Climate Fund) 24
Research support for renewable energies The federal government has continuously increased research funding for renewable energies to ensure a successful energy transition EUR 154.4 million for research funding into renewable energies in 2012 370 new projects approved: 55.6% of the projects with company participation 33.4% for photovoltaics, 24.9% for wind, 9.7% for system integration Wide range of application-oriented research and development funding for further advances in innovation and technology Further cost reductions in renewable energies technology Ensuring the competitiveness of German companies in global markets Increasing the environmental compatibility and natural sustainability of renewable energies technology Source: BMU (a) (2012) 25
Conclusions The German Energiewende is a concrete programme and it is happening (continuous monitoring) Renewable energies have experienced a strong growth The reasons: ambitious targets, efficient policies and instruments, long-term planning security Benefits of renewable energies: climate protection, job creation, economic growth, avoided energy imports, innovation Crucial next steps: cost efficiency, particularly regarding solar PV market and grid integration of renewable energies expand grid and storage capacities sustainable and efficient use of bioenergy cooperation among EU Member States and globally
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