1. Why we need the Energy Transition… 1 Renewables No Coal No Nuclear Energy Security Safety Low Prices Climate Protection Energy Transitsion

2. 2 Agenda Our Targets Germany`s situation before the Transition The Elements of the Transition What about: Prices? Energy Imports? C02 Emissions? Our Targets Germany`s situation before the Transition The Elements of the Transition What about: Prices? Energy Imports? C02 Emissions?

4. The Energy Transition has already started… Ecological Tax Reform (1999-2003) Renewable Energy Act (2000) Nuclear Phase Out (2001-2022) EU Cap and Trade (2005) Integrated Climate and Energy Program (2007) 4

5. Germany´s Feed In Tariff Guaranteed grid access Priority connection of the grid Fixed rate (tariff) for every kWh produced (5 cent up to 22 cent for photovoltaic) Long-term horizon (20 years), but degression -> providing investment certainty 5

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8. Energy Transition with or without Nuclear Power? 1999: 30 % Nuclear Power 2002: Phase out until 2020 2010: 23 % Nuclear Power Autumn 2010: Life time expansion up to 12-15 years 8

9. Fukushima changes evreything 9

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12. Critical Questions So what about… …energy costs? …power shortages & imports? … CO2 emissions? 12

13. Reasons for higher Power prices Profits rather than Costs of Renewables Rise of power prices 2002-2012:10 Cent Cost of Renewables have risen by 3, 59 Cent Prices go up evreywhere due to renewal of the generation system USA: 2004 -2002: Increase of 24 percent UK: 2013 Increase of 9 percent Prices for the whole energy sector rise 2012 Domestic fuel oil: 10 percent Gasoline 9 percent Gas 5 percent 13

14. 14 German consumers have high electricity prices, but pay only average electricity bill Average Monthly Consumption of household (kWh) Price (Cents per Kilowatthour) Monthly Bill New Mexico66911.00$73.57 Iowa89810.46$93.94 Germany32033.85$108.32 Texas1,26211.08$139.81 Alabama1,28411.09$142.41 Source: own calculations, EIA 2011, Destatis 2012

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16. German consumers have high electricity prices, but pay only average electricity bill Average Monthly Consumption of household (kWh) Price (Cents per Kilowatthour) Monthly Bill New Mexico66911.00$73.57 Iowa89810.46$93.94 Germany32033.85$108.32 Texas1,26211.08$139.81 Alabama1,28411.09$142.41 Source: own calculations, EIA 2011, Destatis 2012

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18. Quellen: Hans-Josef Fell, IZES

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24. 5 Take aways: The German Energy Transition… 1. is an ambitious, but feasible undertaking. 2. is driven by cooperatives, citizens and small investors. 3. Provides jobs and income for communities and a competitive advantage for industry. 4. illustrates that fighting climate change and phasing out nuclear power can be two sides of the same coin. 5. is affordable for Germany, and it will be even more so for other countries.

25. www.energytransition.de Thank you!