Renewables Energies of the Future

The German Example

Detlef Loy
on behalf of

Berliner Energieagentur GmbH

Renewable Energy Asia
Bangkok, June 05, 2008

Contents

European and German Framework

German RES-Policy
RES-Targets and current Situation
Measures and Programs
The Renewable Energy Sources Act (EEG)
Achievements
Outlook
Summary

Picture: BMWi

Germany in the Heart of Europe

Area: 357,031 km
Inhabitants: 82.4 Mill.
Gross National Income:
2,423 billion EUR (2007)
Currency: 1 EUR = 51 THB
Source Map: MYGEO

European Energy Policy

Targets for 2020

Climate Protection
Security of Energy Supply
Finite fossil-fuel Resources
Cost Increase
Import Dependency

-20%
Total Primary Energy Supply
Emissions

20%
RES share of Final Energy Consumption
(incl. 10% Biofuels)

-20%
GHG
against 1990, minimum

German Energy Policy Triangle

1. Sustainable

Temperature anormaly (C)

Temperature anomaly (C)

0.6
0.6
0.4
0.4

Global air
Global
air temperature
temperature
2007 abnormally
anomaly +0.40C
2007
+0.40C
(8th
onrecord)
record)
(8th warmest
warmest on

0.2
0.2
0.0
0.0
0.2
-0.2
0.4
-0.4
0.6
-0.6

1860
1860

1880
1880

1900
1900

1920
1920

1940
1940

1960
1960

1980
1980

Source: Climatic Research Unit UEA Norwich, 2008

2000
2000

German Energy Policy Triangle

2. Economic
Development of price indices

Light fuel oil

180

Natural gas
Electricity

Index Jan 2003 = 100

160

Fuel oil:

Wood pellets

Trend + 19% p.a.

Natural gas:
140

Trend + 11% p.a.

Electricity:
120

Trend + 5% p.a.

Wood pellets
Trend + 3% p.a.

100

Jan 03

Jun 03

Jan 04

Jun 04

Jan 05

Jun 05

Jan 06

Jun 06

Dez 06

Source: DENA, Germa Energy Agency, Statistisches Bundesamt, 2006

German Energy Policy Triangle

3. Security of Energy Supply

High Dependence on Energy Imports: 74.5 % in total

66 % Hard Coal
84 % Natural Gas
96 % Petroleum
100 % Uranium

Promotion of renewable energy sources and energy efficiency

is one pillar of the German energy policy

German RES-Policy

Main measures so far

Renewable Energy Feed-in Tariff System (EEG):

RES power
Market Incentives Programme:
grants and loans for RES heat
Research and Development Support
Tax incentives (partly for biofuels)

German RES-Policy

Integrated Climate and Energy Program

Power: Reform / extension of the feed-in legislation
Gas: Share of bio-methane in natural gas grid 10 % by 2030
Heat:
Improvement of market incentives program: stable & transparent
Renewable heat law in progress: quotas & rules
Share in RES heat production 14% by 2020
Transport: Introduction of sustainability criteria for biofuels
In line with various measures to improve energy efficiency
Support of high efficiency cogeneration; share raised from 12% to
25% by 2020
CO2 reduction in the transport sector etc.
Source: Integriertes Energie- und klimaschutzprogramm der Bundesregierung, 05.12.07

German RES-Policy

2010 targets
... already reached up-front
Share of RES

2000

2007

Target year
2010

Primary energy consumption (DE)

2.6 %

6.7 %

4.2 %

Electricity supply (EU Directive: 22 %)

6.3 %

14.2 %

12.5 %

Transport fuel (EU Directive)

0.4 %

6.9 %

5.75 %

German RES-Policy

Development of RES Share of Total Primary Energy Consumption

8,00%
6.70%

7,00%
6,00%
5,00%
4,00%
3,00%
2,10%

2,00%
1,00%
0,00%
1998

1999

2000

2001

2002

2003

2004

2005

2006

2007
Source: BMU

German RES-Policy

Total Primary Energy Consumption by different Energy Sources

Oil
34%

Total: 13,878 PJ in 2007

Hydropower: 0.5%
Wind energy: 1.0%
Gas
22%

share RE
6.7%

Lignite
12%
Hard Coal
14%

Nuclear
11%

1)

Source: BMU according to Working Group on Renewable

Energies / Statistics (AGEE-Stat); using data from Working Group on Energy Balances (AGEB); physical energy content method.

Biomass: 4.9%

2)

Other RE: 0.3%

German RES-Policy

Composition of RES Share in the German Energy Mix (2007)

18%
Wind
Power
38%

Bioenergy
(Heat)
9%

Hydro
Power

Geothermal
energy; 1%

Biofuels

Bioenergy
(Power)

Solarthermal
energy; 2%
11%

20%

Photovoltaic;
2%

Source: BMU

German RES-Policy:
Renewable Energy Sources Act (EEG)
Development of RES Share of Total Gross Power Consumption
16,00%

14.2%
14,00%
12,00%
10,00%
8,00%
6,00%

4,70%

4,00%
2,00%
0,00%
1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Source: BMU

German RES-Policy:
Renewable Energy Sources Act (EEG)
Contribution of renewable energy sourced electricity generation
in Germany 1990 - 2007
100,000
90,000

Hydropower

Wind energy

Biomass*

Photovoltaics

80,000
70,000

[GWh]

60,000
50,000
40,000
30,000

New EEG
1. August 2004

EEG
1. April 2000
StrEG
1. January 1991

20,000
10,000
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
* solid, liquid, gaseous biomass, biogenic share of waste, landf ill and sewage gas;
Electricity from geothermal energy is not presented due to the low volumes of electricity
Source: Source: BM U according to Working Group on Renewable Energies / St atistics (AGEE-Stat)

German RES-Policy:
Renewable Energy Sources Act (EEG)
Power Generation from RES in 2007

Hydropower
23.7%

Wind energy
45.1%

Landfill gas
1.2%
Sewage gas
1.2%

Biogas
8.5%
Liquid Biofuels
3.0%

Solid Biofuels
8.4%
Bio-waste
4.9%

Version: March 2008; all figures provisional

Source: BMU according to Working Group on Renewable Energies / Statistics (AGEE-Stat)

Photovoltaics
4.0%

Total Biomass: approx. 25%

(excluding Landfill and sewage gas)

German RES-Policy:
Renewable Energy Sources Act (EEG)
Main Features

Priority for grid connection, purchase and transmission of

electricity from renewable energies
Consistent fee (tariff) paid per kWh by the grid operators for
this electricity
- Long-term perspective and investment security (1530 years)
- Incentive for opening up new potentials and technologies
Strong incentive for efficiency boost
- Tariffs differentiated by source and size of the plant
- Annual degression rates taking into account technical
development
Nationwide equalization between all grid operators and
electricity suppliers for fees paid

German RES-Policy:
Renewable Energy Sources Act (EEG)
Feed-in Tariff for plants commissioned in 2007

Small Hydro Power

Biomass
Geothermal
Wind onshore
Wind offshore
PV

Cents/kWh
6.65 - 9.67
8.03 - 21.14
7.16 - 15.00
5.18 - 8.19
6.19 - 9.10
37.95 - 54.21

Source: BMU: Erneuerbare Energien in Zahlen, 2007, EEG

Duration (a) Degression

30
20
1.5%
20
1% from 2010
20
2%
20
2% from 2008
20
5%

German RES-Policy:
Renewable Energy Sources Act (EEG)
Equalisation of Feed-in Tariff

4 Transmission Grid
Operators

Ca. 900 Distribution

Grid Operators

RES-Electricity

Ca. 900 Supply

Companies

Payment

Renewable
Power Plants

Consumers

German RES-Policy:
Renewable Energy Sources Act (EEG)

Government
Feed in tariff...

... PV on Buildings 2008

< 30kWp

46.8 ct

30 100 kWp

44.5 ct

> 100 kWp

44.0 ct

Ground mounted
Facade

35.7 ct
+ 5.0 ct

Consumer

Energy Supplier
Source: Solar Energy in Germany

German RES-Policy:
Renewable Energy Sources Act (EEG)
Components of Electricity Price, 2006, Private Households

19.5 EUR-Cent/ kWh

Grid cost
36%

Cogeneration fee
2%
Concession fee
9%
EEG levy
4%

Electricity tax
10%

Electricity
generation and
sale
25%

VAT
14%

Source: BMU

German RES-Policy:
Market Incentives Programme

Solar Collectors

Pictures: TU Ilmenau, BMU /Bernd Mller

Biomass Boilers

German RES-Policy:
Market Incentives Programme
Development of RES Share of Total Heat Consumption
7,00%

6.60%

6,00%

5,00%

4,00%

3,50%

3,00%

2,00%

1,00%

0,00%

Source: BMU/BEE

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

German RES-Policy:
Market Incentives Programme
Heat Supply from RES in Germany
Total: 90.2 TWh in 2007

Solid biofuels
(households)
64.1%

Near-surface
geothermal energy
2.4%
Deep geothermal
energy
0.2%
Solar thermal
energy
4.1%
bio-waste
5.4%

Solid biofuels
(industry)
Gaseous
Solid biofuels (co- 12.5%
biofuels
generation power
3.8%
installations and
heating installations)
Liquid biofuels
2.5%
5.0%

Total Biomass: approx. 93%

Version: March 2008; all figures provisional
Source: BMU according to Working Group on Renewable Energies / Statistics (AGEE-Stat)

German RES-Policy:
Achievements in 2007

Share of RES electricity in 2007: 14.2 %

while contributing to
Jobs: ~ 249,000 (increase of 55% since 2004)
Turnover: ~ 24.6 billion / a
Export Market Volume: ~ 8.5 billion / a

Source: BMU; Bundesverband Erneuerbare Energien (BEE)

German RES-Policy:
Achievements in 2007

Reduction of energy related carbon dioxide emissions:

15.5 % by 2007 compared to 1990
948 Mt in 1990

773 Mt in 2007

Estimation of avoided external costs (impacts of climate change):

some 12 billion in 2007

Source: BMU/AGEEStat: 2007

Renewables Energies of the Future

Global Energy Scenario Until 2050
Outlook
Geothermal
Other renewables
Solar thermal (heat only)

1600

Primary energy use [EJ/a]

1400
1200

Solar power
(PV & solar thermal generation)

1000
800

Wind
Bio-mass (advanced)
Bio-mass (traditional)
Hydroelectricity
Nuclear power
Gas
Coal
Oil

600
400
200
0
2000

2010

2020

2030

2040

2050

2100

Year
Source: Wissenschaftlicher Beirat der Bundesregierung Globale Umweltvernderungen (WBGU)

Renewables Energies of the Future

Cooperation for Sustainability

Initiated between Germany and Spain in June 2004

International cooperation on designing
support framework
for renewable energy

Renewables Energies of the Future

Cooperation for Sustainability

Expanding renewable energy use is one of the main steps

towards a sustainable energy supply
International cooperation is needed to meet the
challenges and build up the markets
Germany is offering to share its experience
Export Initiative for RES-technology of the
German Ministry of Economics and Technology

Renewables Energies of the Future

Cooperation for Sustainability
Further Information

Comprehensive information on German companies

and products in the field of RES:

www.renewables-made-in-germany.com
Information on current events and fairs, case studies, branch
news, presentations and information on different RES:

www.german-renewable-energy.com

Thank you for your attention !