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Local Renewables Freiburg 2007 June 14, 2007

Local Renewables Freiburg 2007 June 14, 2007. Renewable Energy Law: Stimulating Investment in Germany. Tobias Kelm Centre for Solar Energy and Hydrogen Research. Content. German Renewable Energy Law (EEG) Development of renewable electricity in Germany

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Local Renewables Freiburg 2007 June 14, 2007

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  1. Local Renewables Freiburg 2007 June 14, 2007 Renewable Energy Law: Stimulating Investment in Germany Tobias Kelm Centre for Solar Energy and Hydrogen Research

  2. Content • German Renewable Energy Law (EEG) • Development of renewable electricity in Germany • Investment and Employment in the RES/RES-E-sector • Support schemes for RES-E in the EU

  3. EEG Principles • Feed-in tariff system • Obligation on grid operators to connect RES-E plants, to purchase RES-E and to pay fixed prices (remuneration) • Obligation on suppliers to purchase RES-E from grid operators at an average remuneration • The amount of remuneration is cost oriented, differentiated by technology, commissioning year and capacity • Remuneration is fixed for 20 years •  Planning and cost reliability for investors

  4. at least 12.5% by 2010 at least 20% by 2020 Goals: Development and goals of renewable electricity in Germany Source: Renewable Energy in Figures, BMU (2007)

  5. Development of RES-E Generation in Germany amended EEG Source: Renewable Energy in Figures, BMU (2007)

  6. Wind Power Development in Germany Source: Renewable Energy in Figures, BMU (2007)

  7. Photovoltaics Development in Germany amended EEG

  8. Development of annual remuneration amended EEG *Figures for 2006 provisional Remuneration = total costs (of which approximately 50% are differential costs) Source: Association of German network operators (2007)

  9. Electricity Bill 2006 Total: €0.194/kWh Approximately €2 per month for a typical 3-person household Source: BMU (2007)

  10. Turnover from investment and operation in 2006 €11.3 billion from investment in construction of RES-plants €10.3 billion from operating RES-plants Source: BMU (2007)

  11. Employees in the renewable energy sector Employees in the RES-E-sector: 124,000 in 2006 (98,000 in 2004) Source: BMU (2007)

  12. Dominating support schemes for RES-E in the EU Feed-in tariff FI Quota SE Feed-in tariff and Quota EE LA DK LT IE UK PL NL Tax incentives / Investment grants DE BE BE CZ SK LU AT FR HU SI Other system IT PT ES GR MT CY A clear majority of EU countries use feed-in tariffs as a main instrument Source: Feed-In Cooperation

  13. Summary • Development of RES-E in Germany has mainly been driven by the establishment of the EEG, implemented in 2000 • Deployment requires time and money • Tools of German RES-E policy have been successful for accelerating the market for RES-E and thus for the generation of investment and employment

  14. Thank you for your attention! Tobias Kelm Centre for Solar Energy and Hydrogen Reseach tobias.kelm@zsw-bw.de www.zsw-bw.de

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