Abteilung „Industrie-, Dienstleistungs- und Strukturpolitik“Dr. Inge Lippert The German Model -...

Abteilung „Industrie-, Dienstleistungs- und Strukturpolitik“

Dr. Inge Lippert

The German Model - Transition to a New Energy MixManchester, UK 24 October 2012


Dr. Inge Lippert

Political Milestones in 2011

Jan. Febr. MarchApr. May June July Aug. Sept. Oct. Nov. Dec.

Nuclear desaster at fukushima

11 March

Moratorium (8 nuclear power plants were taken from grid)

15 March

Establishment of the Ethics Commission: reassesment of risks of nuclear power

22 March

Decision to phase out nuclear power and modify the energy concept

30 May

Cabinet decision on accelerating the transformation of the energy system

6 June

New laws of energy policy adopted

30 June

Specification of the monitoring process for the energy transformation

20 October 2011

2011: Year of the German „Energiewende“ (energy transition)

The transition is politically decided and must now be implemented


Dr. Inge Lippert

Areas of Action of the Federal Government‘s Energy Concept (I)

Renewable energies as a cornerstone of future energy supply (80% renewables by 2050)

Energy efficiency as the key factor (renovation of old buildings and efficiency minimum standards for new buildings)

Efficient grid infrastructure for electricity and integration of renewables (need of new extra high voltage power lines, implementation of smart grids)

Coal and gas as bridging technologies (modernisation of coal and gas power plants)


Dr. Inge Lippert

Areas of Action of the Federal Government‘s Energy Concept (II)

Mobility (support of low polluting vehicles, aim: 1 mio. electric cars by 2020 and 6 mio. by 2030, coupling of electromobility and renewables, use as electricity storage in the long run)

Energy research towards innovation and new technologies (funding of research on renewable energies: 447 mio. € in 2010/11, funding in new storage technologies: 200 mio. €)

Acceptance and transparency (intensive dialog with the population, early information)

Monitoring (monitoring of the process to determine whether additional steps are necessary)


Dr. Inge Lippert

Targets by 2020 and 2050

Goal 2020 2050

Share of Renewable Energies 35% 80%

Climate-damaging greenhouse gas emissions

40% 95%

Primary energy consumption 10% 25%

Electricity consumption 10% 25% (compared to

2008)

Energy productivity Increase of 2.1% p.a.

Heat demand in buildings 80%


Dr. Inge Lippert

Towards a Renewable Energy Mix


Dr. Inge Lippert

Catching-up-Process Since 2000

• Germany: Not a forerunner of renewable energies in the past(mainly fossil based energy mix)

• This changed with the year 2000: first desicion to phase out nuclear energyand adoption of the Renewable Energy Sources Act (EEG) by red-green government

• Beginning of a fast catching up-process toward renewable energiesSource: Economist

Today: 25%


Dr. Inge Lippert

EEG – Most Important Instrument of Energy Transition

Main Ideas: Promotion of Renewable Energies, Economic Chances, Job Creation

Elements of Regulation: - Priority of renewable energies grid operators are obliged to

purchase electricity from renewable energy installations as a priority

- Guaranteed feed-in payments for a period of up to 20 years per plant (investment security), degressive steps to reduce costs

- EEG cost apportionment costs of EEG are allocated to the electricity consumers

Exeptions for energy intensive industries:- Energy intensive industries (more than 10 GW of electricity per

year) have to pay a lesser amount (0,05 ct/kWh instead of 3,59 ct/kWh) enhancement of competitiveness at international level (financial relief of 2 billion €)


Dr. Inge Lippert

Development of RES

Source: BMU (2011)


Dr. Inge Lippert

Electricity Mix toward Renewable Energies


Dr. Inge Lippert

The DGB Perspective


Dr. Inge Lippert

The DGB-Perspective

The German Trade Unions greatly welcome the withdrawal from nuclear power energy

We share the aim to transform the energy system towards renewable energies

But: - the transition process must be socially just and

may not lead to a drifting apart of „winners“ and „loosers“ and

- the transformation process must not undermine the industrial base (all parts of the value added chain must stay in the country)


Dr. Inge Lippert

Job Creation of REs

Source: BMU (2011)Estimation: More than 600.000 Jobs by 2030


Dr. Inge Lippert

Quality of Work

The quantity and quality of jobs is important

Green jobs are not necessarily good jobs - tariff commitments as well as pay, social and working

standards need to be improved in some sectors of renewable energies (e.g. solar industry)

Unions policy to improve working conditions- increase the union organisation degree in the green sectors- implement co-determination structures and work councils- Subsidies to promote the green economy should be

connected to national laws and standards of the International Labour Organisation (ILO)


Dr. Inge Lippert

Current Political Debates


Dr. Inge Lippert

Renewable Energies – Further Development

Current Situation- Renewable Energies (wind/solar) are developing fast - Germany is well on track to hit ist 2020 goal of 35% (50% RE

expected by 2020)- plans for windparks of the Federal states exceed the plan of

government by 60%,

Government- The high dynamics of RE expansion must be reduced- Major reform of EEG (CDU), abolition of EEG (FDP)- A new „electricity market design“ is necessary

DGB- EEG is an important instrument to increase the share of

renewables- Reform is needed, but no permanent ad hoc changes of EEG- „Moratorium“ of 2-3 years


Dr. Inge Lippert

Energy Prices – Socially Just?

Current Situation- Rising of EEG apportionment: from 3,59 ct kWh to 5,27 ct kWh- Debate on the distribution of costs of RE expansion (small

companies and private consumers have to bear the costs of rising apportionment)

Government- Exeptions for energy intensive industries are to be retained, but

the „targeting“ of exceptions should be reviewed - Free energy advice to increase energy efficiency

DGB - Energy intensive industry and private consumers should not be

placed in opposition to each other - The state must bear part of the costs (abolition of VAT on EEG

apportionment)- Financial support for low income households (increase of Hartz IV

standard rates, financial support for purchasing energy efficient household appliances)


Dr. Inge Lippert

Grids – Bottleneck of the Energy Transition

Current Situation- DENA-II-Study: between 1800 and 3600 km of new transmission grids- But: expansion is too slow (just 214 km constructed so far)- Long planning and authorization procedures, investors are reluctant, unclear

liability rules

Government (NABEG – Law for Speeding up Network Expansion)

- Shortening the planning and autorization procedures from 10 to 4 years- Pooling of responsibilities on national level- Broad and early consultation of citizens

DGB - NABEG welcomed, but focus on transmission networks. Distribution

networks are not taken into account - As decentralised power input by REs grows, investments in distribution

networks become more important (27 bn €)- New models of finance: long-term loans instead of short-term strategies,

financial participation of citizens (e.g in grid building, citicens wind farms)


Dr. Inge Lippert

Energy Efficiency- an underused potential

Buildings- Government has announced to double the renovation rate of buildings from

1% to 2%- But: the budget for the „CO2

-Building-Modernisation-Programme“was reduced, from 2.5 bn € in 2009 to 1.5 bn € in 2012

- Increase annual budget to 5 bn €

Mobility - Not only electromobility, but also more efforts to prevent and shift traffic

(relocation fright traffic onto the rails)- Electromobility as complement to carbon-based vehicles (electricity

generation for electromobility on basis of RE)- Rethinking of mobility behaviour (car sharing etc.)

Industry - Promotion of combined heat and power- Increase of the energy efficiency fund (500 mio. €) to promote energy

efficient technologies (pumps, motors etc.) - Introduction of energy management systems, integrate resource

efficiency ratios in balance sheets- Traning and involvement of employees and work councils


Dr. Inge Lippert

Conclusions


Dr. Inge Lippert

Conclusions – What do we need?

Massive investment in infrastructure (grid, storage technologies) to integrate the renewable energies into the supply system.

Reliable framework to improve investment security for investors (no abolition of EEG).

Integrated approach for the future energy system, that draws together the different elements of the energy transformation process (master plan) and careful monitoring of progress.

Institutional changes: Bundling of competencies instead of permanent disputes of competencies between two ministries.

Strengthening the participation of all actors (national platform of “Energiewende”).

Qualification and training of employees and works councils.


Dr. Inge Lippert

Thank you for your attention!

Abteilung „Industrie-, Dienstleistungs- und Strukturpolitik“Dr. Inge Lippert The German Model -...

Documents

Transcript of Abteilung „Industrie-, Dienstleistungs- und Strukturpolitik“Dr. Inge Lippert The German Model -...