Jordanian delegation visit to Germany - Exploring business opportunities in Solar Energy - WELCOME Welcome seminar & B2B Meetings Frankfurt, November 26 th, 2007 Organiser
Jordanian delegation visit to Germany - Exploring business opportunities in Solar Energy - German solar energy market development and MENA activities in renewable energies Rafael Wiese, Bundesverband Solarwirtschaft e.v. 2
Bundesverband Solarwirtschaft e.v. Office for rural electrification Goals BSW is the lobby group of the German solar energy industry, acting as informant and intermediary between the business political and public sector. The BSW Office for rural electrification strives to optimize conditions for sustainable energy supply in developing and emerging countries. Members Activities 650 members: Producers, wholesalers, installers, consultants, R&D institutes Lobbying and political advice, public relations, market observation, business co-operations 3
Solar Thermal Market Development in Germany Solar Thermal Market Data 2006 Newly 1050 installed power 1050 MWth 980 Newly installed collector area 1.5 Mio m² 910 Total installed power 5750 MWth 840 No. of newly installed systems 140 000 770 No. of total systems installed 940 000 700 Turnover 2006 1.2 Bln / 1.6 Bln $ 630 Employees 19 000 560 Annually installed heat power [Megawatt] 490 420 350 280 210 140 70 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 Annually installed coll area [1,000 m²] flat plate coll vacuum tube coll trend 18% growth annually 4
European Solar Thermal Markets 2006 Cyprus 2% UK: 2% Austria 10% Greece 8% France 7% Italy 6% Spain 6% Switzerland 2% Poland 1% European Market 2006: 3.0 Mio m² 2.1 GWth Source: ESTIF/BSW Germany 50% Others 1% Netherlands 1% Belgium 1% Sweden 1% Denmark 1% Czech Rep 1% Portugal 1% 5
Standard System for Domestic Hot Water Production Typical data for Germany (4-person household) ca. 6m² collector, ca. 400 l. solar storage tank; >60% fuel savings Costs ~ 4,000 5,000 incl. installation Pay-back time within lifetime Typical data for Southern Europe 2-4 m² collector area 80-150 l. storage tank Pay-back time much shorter than life time Flat-plate or vacuum tube collector Solar station with controls and circulation pump Water storage tank Water boiler: oil, gas new: wood pellets rarely: elec. power Cold water inlet 6
Special know-howin large scalesolar Thermal Systems Large solar thermal systems for multi family houses, hotels, hospitals, supermarkets etc. to supply heat or cooling Image: Solvis Image: Wagner & Co 7
Photovoltaic (PV) - solar electricity world market 2006 Germany is the biggest PV-market since 2004 RO EU 10 MWp; 1% Switzerland 2 MWp; 0,1% Greece 3 MWp; 0,2% Portugal 5 MWp; 0,3% France 5 MWp; 0,3% Italy 12 MWp; 1% Spain 60 MWp; 4% USA 130 MWp; 9% Japan 330 MWp; 23% Germany 750 MWp; 52% China 5 MWp; 0,3% Korea; 20; 1% RO Asia 40 MWp; 3% RO World 80 MWp; 6% World market 2006: Appr. 1.450 MWp Spource: Estimation BSW on the basis of EPIA data 8
Development of the German PV-market PV Market Data 2006 Newly installed power 750 MWp Total installed power 2 540 MWp No. of newly installed systems 90 000 No. of total systems installed 300 000 Turnover 2006 3.8 Bln /5.5 Bln $ Employees 35 000 600 750 750 900 expected 3500 3000 2500 2000 total installed PV-power in MWp Milestones 1991: First Feed-in Law 2000: Renewable Energy Sources Act (EEG) 2004: Amendment of EEG 80 78 40 10 12 3 3 3 3 4 7 12 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 annually installed PV power in MWp total installed PV power in MWp 150 1500 1000 500 0 9
Grid-Connection of PV Systems in Germany Every kwh of solar electricity produced is fed into the grid, sold to the utility and payed with a fixed price Photovoltaic modules Inverter DC/AC Feed-in electricity meter Consumption meter Typical data of a small PV system (per kwp) Investment costs: 4,800 (7,000 $) Annual production of solar electricity: Feed-in tariff: Feed in payment: Interest rates (KfW): 900 kwh/a 0.492 /kwh (0.71 $/kwh) payed over 20 years 443 /a (640 $/a) 4.7%/a eff 1 $ = 0.69 10
Photovoltaic (PV) industry is following the market: example Germany More than 10 billion were invested in PV installations since 2000 - Investments made by private consumers and institutional banks More than 2 billion were invested in manufacturing plants since 2000 - About 40 companies produce silicon, wafers, cells, modules and inverters - Automated production lines ensuring industrial standards and high quality - Strong technological development and increased R&D activities - Improved efficiency of German products along the whole value chain Image: Q-Cells Image: Aleo 11
Photovoltaic (PV) industry is following the market: example Germany Drop in costs for PV systems of - approx. 25% from 1999 to 2003-60% from 1991 to 2003 - price reduction of 10% since 2006 Job creation - approx. 35.000 jobs in the PV industry - Huge variety like production, planning, installation, R&D, Image: Solon Image: Suntechnics 12
Use of Photovoltaics in Germany 10% ground mounted large PV systems > 1 MWp More than 300,000 PV systems have already been installed > 1 MWp 98% of systems are connected to the grid 50% multi family houses, public and social buildings, farms, commercial plants 10-1000 kwp 10 kwp - 1 MWp 2-10 kwp 40% small PV systems on private residential homes 1-10 kwp Image: Voltwerk Image: Solarwatt Image: Solarwatt 13
High public awareness for PV Building integrated PV at main station in Berlin BSW 14
R & D for future technology Concentrix GmbH 15
Reliable solar power supply for remote areas Off-grid power supply for guest house in the Alpes SMA AG 16
Reliable solar power supply for remote areas worldwide Water pumping system in Eritrea Phaesun 17
German Federal Ministry for Environment MENA activities 1. MENAREC conferences 2. SOLARTHERM 3. R&D: MED CSP, TRANS CSP, AQUA CSP 4. ENP conference 19.April 2007 18
1. MENAREC Middle East North Africa RE Conference 2004 MENAREC 1, Sana a/yemen regional preparation for Bonn, Sana a Declaration, business delegation 2005 MENAREC 2, Amman/ Jordan Prince Hassan Ibn Tallal, CSP focus 2006 MENAREC 3, Cairo/ Egypt EU participation, private foundation, Cairo Declaration 2007 MENAREC 4, Damascus/ Syria BK a.d. Schröder, Damaskus Declaration, MEDENEC 2008 MENAREC 5 Marokko 2009 MENAREC 6 Libyia? 19
MENAREC 4-2007 700 participants 34 countries 19 regional, intern. organisations 10 Ministers MEDENER, MEDENEC Aqua CSP 20
2. SOLARTHERM 21
3. CSP Studies MED-CSP TRANS-CSP Aqua-CSP Objective: Interconnection of the electricity grid of Europe, the Middle East and North Africa with the purpose of supplying about 15 % of the European electricity demand by solar energy imports from the South by the year 2050 22
Sketch of a possible sustainable power interconnection EU-MENA 23
4. ENP-Conference, Berlin April 2007 Ministerial Conference under the German Presidency of the EU Ministers, international organisations, NGOs and industry Renewable Energy and Energy Efficiency Innovative policies and financing instruments for the EU's southern and eastern neighbours www.energy-conference.org 24
Barriers and constrains to RE in MENA region Barriers: regulatory, institutional, technological, economical Lack of political committment in some countries Unclear strategies and policies Shortage in institutional support and capacity frameworks Lack of educational & awareness raising programs Inadequate technology transfer & lack of local manufacturers. no level playing field: subsidies on traditional energy supplies, low electricity tarifs, Investment constrains in most countries for RE. High initial cost of some RE equipment & instalation. Limited inter- and intra- cooperation and integration in the MENA Region. 25
Recommendations Policy Clear and long term political committment through: 1. targets 2. support policies, level playing field 3. building codes 4. R&D 5. Awareness raising and capacity building 26
Recommendations Industry investments R& D capacity building awareness raising 27
Examples of RE development in MENA region Morocco: RE target wind, rural electrification programmes, MENAREC 5; Algeria: RE legislation, CSP; Tunisia: electricity grid to Italy, 1200 MW planned capacity for new power plants, MEDENEC, MEDREP; Libya: first wind farm, CSP, MENAREC 6; Egypt: 20% target, Wind, Hydro, PV, CSP, Centre of Excellency, foundation; Jordan: RE target, RE law, wind, PV CSP projects; 28
Examples of RE development in MENA region Syria: RE target, 100 MW wind farm, RE master plan new legislation; Lebanon: RE target, reconstruction, UNESCWA; Saudi Arabia: R&D solar cooling; Kuwait: Bahrain: UAE: Oman: Yemen: PV research; buildings, R&D, UNEP ROWA; Al Masdar, World Future Conference, CSP; desalination; wind farm, PV; 29
Example of implementation Bahrain Twin Tower Building 800 kw Wind Generators 30
Example of implementation Zafarana, Egypt Wind Farm Beginning 2006 145 MW Planned by 2010: 800 MW 31
Thank you for your attention! www.rural-electrification.com wiese@bsw-solar.de 32