1. www.renewables-made-in-germany.com Renewable Energies in Germany at a Glance - Focus on Geothermal Energy János Büchner, energiewaechter GmbH Consultant to the Initiative “renewables – made in Germany” of the German Federal Ministry of Economics and Technology (BMWi)

2. 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

3. 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

4. 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)

5. 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

6. Political background and framework for RE development in Germany

7. 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?

8. 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!

9. 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

10. 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

11. Share of the reallocation charge in the consumer’s electricity bills Credits: Renewable Energies Agency, Berlin now: 5,3 cents

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

13. 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%

14. Renewables replace Nuclear Power Credits: Renewable Energies Agency, Berlin

15. 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

16. Development of RES Share in Reference to Heat Production Heat supply share of REs planned to reach 14% by 2020

17. Structure of Renewable-based Heat Supply in Germany 2011

18. Near-surface Geothermal Utilities for Heat Allocation in Germany

19. 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)

20. Public opinion: Costs of RE development regularly an issue of election campains, but generally.... Credits: Renewable Energies Agency, Berlin

21. Benefits of RE promotion in Germany

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

23. Who are the owners /investors in German RE installations? Credits: Renewable Energies Agency, Berlin

24. Many thanks for your attention and have a fruitful event day! Contact: János Büchner, energiewaechter GmbH E-Mail: jb@energiewaechter.de