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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,

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Presentation on theme: "Political Framework for Renewable Energies in Germany 12th of November 2008 AHK-Program Renewables Made in Germany Uusikaupunki, Finland Sebastián Rivera,"— Presentation transcript:

1 Political Framework for Renewable Energies in Germany 12th of November 2008 AHK-Program Renewables Made in Germany Uusikaupunki, Finland Sebastián Rivera, Ecofys Germany GmbH

2 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

3 The Renewable Energy Law - EEG Enacted in 2000, adjusted in 2004 and latest amendments to be in force as from January 1 st 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

4 Cent/kWhDegression Hydropower (< 5 MW) % Biomass (<20 MW)8.06 – % (on base tariff) Geothermal Energy (<20MW) % Wind energy (onshore) % Wind energy (offshore) % Solar power35.49 – %-6.5% Feed-In Tariffs 2008

5 EEG-supported installations

6 EEG effects on technologies

7 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)

8 The Renewable Heat Act To come into Force on the 1 st 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

9 Obligation Building owners obligated to use renewable energy sources Combination of technologies possible Exemptions for technical non-feasibility or preservation of historical architecture The Renewable Heat Act

10 The Market Incentive Program MAP Continuation of MAP 2007 with new focal points and higher budgets 2008: 350 mio : 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

11 MAP - Comparison 2007/2008 MAP 2007MAP 2008 Solar collectors (warm water) <40m2 40/m 2 60/m 2 Solar collectors (warm water & heating)<40m2 70/m 2 105/m 2 Pellet boilers & stoves (<100kW) 24/m 2 36/m 2 Wood chip boilers (per installation): 500 Split log gasification boilers (15-30kW) (per installation):

12 MAP – subsidized installations Yearly Cumulative State: December 2006

13 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

14 Renewable fuels in Germany

15 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

16 From policy to market – Energy Turnover

17 From Policy to Market – Construction Turnover

18 Employment in the Renewable Energy Sector

19 EU-assigned RES-E target for Germany in 2010 is 12.5% already exceeded in 2007 National targets for 2020: Renewable Electricity share: % 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 Germany in the European context

20 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

21 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

22 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

23 Further Questions? Sebastian Rivera Ecofys Germany GmbH

24 Further Detailed Information

25 Renewable power in Germany

26 Changes to EEG 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

27 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 Details

28 Wind - Onshore Improved conditions for repowering Improved grid integration Photovoltaic Decreased tariffs Increased degression

29 Market Incentive Program (MAP) will be integrated in the Law Investment Subsidies for Renewable Heat: 500 Mio for Bonus system for highly efficient devices and combination of technologies Incentives for highly efficient heat pumps The Renewable Heat Act & the MAP

30 Renewable heat in Germany

31 EU targets & capacities


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