www.renewables-made-in-germany.com

Renewable Energies in Germany at a Glance

-Focus on Geothermal Energy

János Büchner, energiewaechter GmbHConsultant to the Initiative “renewables – made in Germany” of the German Federal Ministry of Economics and Technology (BMWi)

Content

The Initiative Renewables – Made in Germany

Political background and framework for RE development in Germany

RE Market development in Germany and economic effects

Some figures: RE and Geothermal Energy

Presentation of representatives of German companies

Source: Development of renewable energy sources in Germany 2011 provided by BMWi

The Initiative Renewables – Made in Germany

Scheme financed and coordinated by the German Federal Ministry of Economics and Technology (BMWi)

German Government intends to

contribute to global climate protection through support of advanced RE-technologies

contribute to international knowledge exchange through conferences, fostering cooperations and joint ventures

support German SMEs finding cooperation partners in foreign countries

The Initiative renewables – Made in Germany

Tools are

•not only organized business trips and conferences in foreign countries

•but also information trips for decision makers from foreign countries to Germany (visits of research institutions, companies and pilot projects in Germany)

The initiative on the Web

www.renewables-made-in-germany.com

Info on upcoming events:

Business trips, trade fairs,

information trips for foreign

decision makers to Germany Information on German companies

and institutions Information on

actual market developments

www.renewablesb2b.com

Virtual Market Place; B2B platform

Political background and framework for RE development in Germany

Germany’s Energiewende (‘Energy Turnaround’) in 2011

Already after Chernobyl (1986) and even before many Germans called for a phase out of

nuclear energy use

Finally the Catastrophe in Fukushima led to Germany’s

energy turnaround by cabinet decision in June 2011:

Nuclear power use phase out until 2022…

…while keeping the aim to …..

… reduce our GHG-emissions

by 40% until 2020

by 80% until 2050

(compared to 1990)

How to achieve that?

Share of Renewable Energy Sources in Total Final Energy Consumption in Germany 2011 (& 2012)

Source: Development of renewable energy sources in Germany 2011 provided by BMWi

2012:

RES all together: 12.6%

Huge potential!

Suitable Regions for the Use of Geothermal Energy

Source: Development of renewable energy sources in Germany 2011 provided by BMWi

(Potentialatlas Erneuerbare Energien)

Even the (comparably small) hydrothermal potential could supply a fivefold of the current German electricity demand

Main Instrument to Promote REs (ELECTRICITY production)

Act on Granting Priority to Renewable Energy Sources (EEG) Grid operators are obliged to connect RE systems to the grid and to buy the

electricity from the system operators to set prices Fixed Feed-In tariffs (FITs) for 20 years guaranteed by law for RE system

operators Tariffs vary depending on the utilized source, e.g. biomass, PV, geothermal

energy etc. Amendments take place at regular intervals depending development on market

development and competitiveness of technologies Example: FITs for geothermal electricity production increased in 2012.

(Depending on technology up to 23, 25 or even 30 ct/kWh (e.g. petrothermal projects). FITs for Photovoltaics - in contrast - decreased

FITs financed by consumers: reallocation charge of currently

5,3 €-cent per kWh consumed

Share of the reallocation charge in the consumer’s electricity bills

Credits: Renewable Energies Agency, Berlin

now: 5,3 cents

EEG: Increasing Share of Renewable Energy Sources for Electricity Generation in Germany, 1990-2010

Contribution of renewable energy sources to electricity supply in Germany

0

20,000

40,000

60,000

80,000

100,000

120,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

[GW

h]

Hydropower Wind energy

Biomass * Photovoltaics

* Solid and liquid biomass, biogas, sewage and landfill gas, biogenic share of waste; electricity from geothermal energy not presented due to negligible quantities produced; 1 GWh = 1 Mill. kWh;StromEinspG: 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 Energy-Statistics (AGEE-Stat); image: BMU / Christoph Edelhoff; as at: July 2011; all figures provisional

StromEinspG:January 1991 - March 2000

Amendment to BauGB:November 1997

EEG:April 2000

EEG:January 2009

EEG:August 2004

Share of Renewables in Energy Consumption: ELECTRICITY 2012: roughly 23%

Credits: Renewable Energies Agency, Berlin

2012: 22,9%

2012: Stagnation at 10,4%

2012: 12,6%

Renewables replace Nuclear Power

Credits: Renewable Energies Agency, Berlin

Main Instruments to Promote REs (HEAT production)

Renewable Energies Heat Act (EEWärmeG) since 2009:

Minimum share of heating energy supply from REs for new buildings usually obligatory

Obligations depending on the technology/ies used (e.g. biomass and heat pumps: 50%, solar thermal 15%)

Market Incentive Program for Renewable Energies (Marktanreizprogramm / Federal Environment Ministry, (BMU):

Financial contributions / beneficial loans for certain REs investments

Loans by KfW Bankengruppe (KfW Group) - National business development bank:

subsidised loans for energy-efficient housing and RES

Development of RES Share in Reference to Heat Production

Heat supply share of REs planned to reach 14% by 2020

Structure of Renewable-based Heat Supply in Germany 2011

Near-surface Geothermal Utilities for Heat Allocation in Germany

Germany’s Energy Turnaround today

Currently a political debate about the costs, (election 2013 / political campaigns started)

but the EEG (Act on Granting Priority to Renewable Energy Sources)

remains major instrument to boost renewables

Current Challenges:

Research & Development for energy storage solutions (even here large geothermal

potentials: heating/cooling)

Intensify energy saving and efficiency efforts

Speed-up grid expansion (major problem: transport e.g. offshore wind power from the north

to highly industrialized areas in the south)

Public opinion: Costs of RE development regularly an issue of election campains, but generally ....

Credits: Renewable Energies Agency, Berlin

Renewables in Germany: Growth of Total Employment 2010 alltogether almost 370,000 jobs / Solar 120,000 / Geothermal energy: 13,000

Who are the owners /investors in German RE installations?

Credits: Renewable Energies Agency, Berlin

Many thanks for your attention and

have a fruitful event day!

Contact: János Büchner, energiewaechter GmbHE-Mail: jb@energiewaechter.de