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Political Framework for Renewable Energies in Germany. 12th of November 2008 AHK-Program “Renewables Made in Germany” Uusikaupunki, Finland Sebastián Rivera, Ecofys Germany GmbH. Support mechanisms in Germany. The Renewable Energy Act: Feed-in Tariff for electricity
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Political Framework for Renewable Energies in Germany 12th of November 2008 AHK-Program “Renewables Made in Germany” Uusikaupunki, Finland Sebastián Rivera, Ecofys Germany GmbH
Support mechanisms in Germany • The Renewable Energy Act: Feed-in Tariff for electricity • The Renewable Heat Act and the Market Incentive Program • Tax exemptions replaced by quota
The Renewable Energy Law - EEG • Enacted in 2000, adjusted in 2004 and latest amendments to be in force as from January 1st 2009 • Priority for feed-in of RE • Feed-In Tariffs for Renewable Power • 2005: European Commission attested feed-in tariffs to be an effective and cost efficient instrument
Essential Changes to EEG 2004 • Basic structure retained • Higher requirements for power generating facilities • Improvement of grid management and feed-in conditions for RE • Increase of financial incentives for repowering • Improved framework conditions • Significant changes in tariffs in some RE- sectors (e.g. Biogas)
The Renewable Heat Act • To come into Force on the 1st of January 2009 • Main Elements: • Obligation for the use of Renewable Energy sources for Heat • Integration of the Budget for the Market Incentive Program within the Law • Incentive to the development of district heating networks
The Renewable Heat Act • Obligation • Building owners obligated to use renewable energy sources • Combination of technologies possible • Exemptions for technical non-feasibility or preservation of historical architecture
The Market Incentive Program MAP • Continuation of MAP 2007 with new focal points and higher budgets • 2008: 350 mio.€ • 2009 - 2012: 500 mio.€ (by Law) • Additional new bonus system for highly efficient facilities and intelligent coupling of different renewable energy sources • Additional subsidies for efficient heat pumps
State: December 2006 Yearly Cumulative MAP – subsidized installations
Bio-fuels – recent developments • Total bio-fuels until 2014: 6,25 % energetic • Support coupled to cross compliance standards (habitat protection, minimum environmental cultivation standards) • 2011 quota will be revised • Tax reduction of 3 Ct/l for B-100
Current Discussions • Positive energy balance of bioethanol production not always guaranteed • Sustainability certification system (also for imported biomass) • Second generation biofuels need further R&D • Food vs. Fuel
Germany in the European context • EU-assigned RES-E target for Germany in 2010 is 12.5% already exceeded in 2007 • National targets for 2020: • Renewable Electricity share: 25-30 % • Renewable Heat share: 14% • Biofuels share: 17% ? • European Commission attested feed-in tariffs to be an effective and cost efficient instrument EU quota system of complementary character
Conclusion policy measures • Big future challenges • German approach has been very successful so far – electricity: targets exceeded • Technologies are available / strong industry has developed • Smart support schemes must aim at making technologies competitive • International cooperation needed
Conclusions • RE are climate friendly, technologically mature, a „job wonder“, highly popular, approaching competitiveness,… => i.e. a widely accepted option for today AND tomorrow • Political will / smart support is essential for further market development • EU Renewable targets: not „burden“ sharing but sharing of new business opportunities
Companies present at this event • Bekon Energy Technologies GmbH & Co KG • Michal Kosuth • epo GmbH • Ansgar Hahn • IMS Ingenieurgesellschaft • Peter Ruland • ROHRPLAN Ing.-Büro für Anlagen- und Rohrleistungsplanung GmbH • Hermman Liess • MAN Turbo AG • Toralf Forstreuter • Omniwatt AG • Torsten Scholl
Further Questions? Sebastian Rivera s.rivera@ecofys.de Ecofys Germany GmbH www.ecofys.de
Changes to EEG 2004 - Details • Hydropower • Increased tariff for small-scale installations • Ecological criteria for all installations • Uniform support period of 20 years • Biomass • Increased incentives for CHP and Energy Crops (Biogas) • Increased tariff for small-scale installations • Obligation for CHP for installations >5MW
Changes to EEG 2004 - Details • Geothermal Energy • Increased tariff for all installations • Bonus for CHP • Simplification of tariffs • Wind - Offshore • Increased tariff • Degression increased and delayed (2015)
Changes to EEG 2004 - Details • Wind - Onshore • Improved conditions for repowering • Improved grid integration • Photovoltaic • Decreased tariffs • Increased degression
The Renewable Heat Act & the MAP • Market Incentive Program (MAP) will be integrated in the Law • Investment Subsidies for Renewable Heat: 500 Mio € for 2009 - 2012 • Bonus system for highly efficient devices and combination of technologies • Incentives for highly efficient heat pumps