1. University of Flensburg/Germany International Institute of Management Energy and Environmental Management in Developing Countries (former SESAM) MEng (Industrial Engineering) sesam@uni-flensburg.dewww.iim.uni-flensburg.de/sesam Energy in Germany Presentation at UWI Jamaica.2009 August Schläpfer Wulf Boie

2. Energy Consumption in Germany The German economy is large and developed –Fifth in the world by GDP Germany consumed the fifth most energy per capita in the world in 2004 In 2007, Germany consumed 472 million tons of coal equivalents The consumption is divided up as follows: –Mineral oils 33.8% –Natural gas 22.7% –Hard Coal 14.1% –Nuclear energy 11.1% –Lignite11.7% –Renewables6.6% http://www.euronuclear.org/info/encyclopedia/p/pri-con-ger.htm University of Flensburg Energy and Environmental Management

3. Energy Imports Germany depends on energy imports higher than the average EU- 27 Electricity generation is based primarily on coal and nuclear energy, with growing shares of natural gas and renewable sources 2004 Net Imports Imports by Energy Product http://ec.europa.eu/energy/energy_policy/doc/factsheets/mix/mix_de_en.pdf University of Flensburg Energy and Environmental Management

4. German Renewable Energy Act: Guaranteed Purchase of Renewable Energy Private Investors Renwable Energy Plants Electricity Consumers Grid Operators Supply Renewable Electricity Pay Feed In Tariff Supply Renewable Electricity as share of Electricity Mix Reimburse Feed In Tariff Supply Renewable Electricity as share of Electricity Mix Electricity Suppliers Reimburse Feed In Tariff as part of electricity tariff University of Flensburg Energy and Environmental Management Equalize and balance quantities of RE

5. German Renewable Energy Act: Feed-In Tariffs (2009) Guaranteed for 20 years, degressions for installation after 2009 University of Flensburg Energy and Environmental Management

6. German Renewable Energy Act: Impact on Electricity Tariffs Generation,Transmission, Marketing 13 ct Concession fees 1.8 ct Value Added Tax 3.4 ct Electricity tax 2.0 ct Added cost of feed-in tariff 1.1 ct Included in generation/transmission cost: 0.4-0.8 ct for additional control energy Fraunhofer Institute: Reduction of market price due to wind energy: 0.95 ct/kWh University of Flensburg Energy and Environmental Management Added cost of feed-in tariff 0.1 ct

7. German Renewable Energy Act: Impact Large share of renewable energy plants in Germany owned by individual farmers, households, groups of individuals: 90 % of windfarms in North Frisia owned by groups of citizens 80 % of biogas plants in Germany below 500 kW el, 17% owned by cooperatives Most PV plants roof mounted, owned by households, farmers, communities University of Flensburg Energy and Environmental Management 6.3% 15.1% Wind Biogenic waste Biomass Hydropower Solar PV

8. German Renewable Energy Act: Impact on Environment and Economy Climate: 72 million t CO 2 eq.. savings in 2008 Fossil fuel import: 1 billion savings in 2007 (mainly coal and natural gas) Economy: Total turnover of the RE sector: 28.8 Billion in 2008 University of Flensburg Energy and Environmental Management

9. German Renewable Energy Act: Impact on Regional Development Employment: 278 000 people working in the German RE sector in 2008 Local income from energy sales if RE plants are locally owned Tax income: Operators of RE plants pay local business tax to communities Example Northern Schleswig Holstein (360 000 inhabitants): 9500 directly and indirectly employed by wind energy sector in 2003 Example North Frisia (167 000 inhabitants): approx. 30 Million /year net income from energy sales Example North Frisia (167 000 inhabitants): 676 MW wind capacity, 9,1 mio income from business tax University of Flensburg Energy and Environmental Management