Invest in smart green Germany and join our Energiewende2024. Expansion and Reinforcement...

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Invest in smart green Germany and join our Energiewende

Tobias Rothacher, Friedrich Henle

Ecosummit Berlin

19 May 2015

www.gtai.com

Agenda

19 May 2015 2 Germany Trade & Invest

I. Investment opportunities in the Energiewende

II. How Germany Trade & Invest supports you

III. Incentives supporting your business in Germany

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Renewable Energies in Germany


Renewables = “the” game changer

Wind energy

PV

Biomass

The circle diameter is proportional

to the electrical capacity.

Total capacity of renewables (End 2000)

~ 30,000 installations

Sources: 50HertzT, TenneT, Amprion, TransnetBW, internal data

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Wind energy

PV

Biomass






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Wind energy

PV

Biomass




~ 1,300,000 installations


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The Energy Concept (2010)


Main Objectives

Energy efficiency measures

Increase in energy productiveness 2.1% p.a.

Reduction of energy consumption -50% (2050 vs. 2008)

Reduction of electricity consumption -25% (2050 vs. 2008)

Renovation rate 2% p.a.

Reduction of energy consumption for transportation

-10% (2020 vs. 2005) -40% (2050 vs. 2005)

Climate protection measures 2020 2050

GHG cuts vs. 1990 -40% -80%

Renewable share of… 2020 (2025) 2050

Total energy consumption 18% 60%

Electricity consumption 35% (40-45%) 80%

Heat generation 14% 60%

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Energiewende in Germany


Future electricity mix in Germany will be based on Wind and PV.

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From Grid-Parity to Battery-Parity


* Model calculation for rooftop systems, based on 802 kWh/kWp (Frankfurt/Main), 100% financing, 6% interest rate, 20 year term, 2% p.a. O&M costs

** based on 5,000 cycles, 87% efficiency

Sources: System Prices: BSW 2015; Model Calculation: Deutsche Bank 2010; Electricity Prices 2007-2013: Eurostat 2013.

With further increasing electricity prices and decreasing PV system costs,

the business case for storage is becoming better and better.

Prognosis

0,70

0,90

1,10

1,30

1,50

1,70

1,90

2,10

2,30

2,50

2,70

2,90

3,10

3,30

3,50

3,70

3,90

4,10

4,30

4,50

4,70

4,90

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

0,45

0,50

0,55

2007 2008 2009 2010 2011 2014 2015 2016 2017 2018 2012 2013

EU

R/k

Wh

Electricity price for households [2.5-5 MWh/a] Electricity costs for PV + Battery** Electricity costs for PV*

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Grid Parity = Competitiveness

Competitiveness of solar = new business opportunities for energy

storage, power-to-heat, smart homes, …..!

www.gtai.com 19 May 2015 10 Germany Trade & Invest

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Ensuring Grid Stability in the Future


Simulation of German grid in 2022: daily & seasonal fluctuations increase.

PV Fossiles

GW

GW

G

W

GW

February (week 6th) April (week 14th)

August (week 33th) November (week 47th)

Electriciy demand Wind Biomass

Source: Agora Energiewende 2015

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Demand of Energy Storage


Seasonal storage will be essential at > 50% fluctuating sources

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

-45

-40

-35

-30

-25

-20

-15

-10

-5

0

2020 2030 2040 2050

Po

wer in

GW

En

erg

y i

n T

Wh

Hours

Days

Weeks

Months

Years

hours2

days2

weeks2

month2

years2

Balancing...

Renew. Share: 43% 68% 88%

Source: Gerhardt IWES 2011, ZSW 2011

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Expansion of the Electricity Grid in Germany


An enormous expansion of the high voltage grid system is required by

2024.

Expansion and Reinforcement

Transmission grid

Grid expansion and reinforcement of 8,700 km is

required by 2024

Baseline scenario with overhead lines requires:

22 bn €*

Additionally the connection of the offshore-grid is

estimated to

10-12 bn €

Grid Expansion Distance in km

DC-New Construction 2,200

AC-New Construction 1,300

DC/AC-Grid Reinforcement

5,200

Source: TSO 2014; * Costs estimates per NEP-Draft 2014 49GW/12GW wind onshore/offshore

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Vast Industrial Energy Efficiency Potential


93 billion EUR investment = 199 TWh economically attractive savings*

Source: Siemens 2013; * Economically attractive= IRR> 8%

0

5

10

15

0 5000 10000 15000 20000 25000 30000

Payb

ack in

years

Invest in million EUR

26000 17500 14000 10500 7900 7200 6700 3700 2000 500 300

Savings potential: 42 TWhel/a = 4.9 B € energy costs/year 157 TWhth/a = 6.3 B € energy costs/year

79.7 TWhth

4.4 TWhel

10.0 TWhth

3.3 TWhel

7.5 TWhth

6.5 TWhel 2.2

TWhel

0.4 TWhel

0.2 TWhel

Process Heat

Motion (Pumps, E-Motors, etc.)

Lighting

Economically attractive energy savings potential in German industry in TWh

with existing technologies.

0.8 TWhel

59.8 TWhth

12.6 TWhel

8.0 TWhel

3.9 TWhel

Needed: New business models, financial innovation, tech solutions

Process Automation

Energy Data Manage- ment

HVAC Com-pressed Air

Process Cold

Hydraulics Electri-city Supply

Waste Water Treat- ment

Heat





Agenda

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Germany Trade & Invest


Germany Trade & Invest (GTAI) is the foreign trade and inward

investment promotion agency of the Federal Republic of Germany.

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Investment Consultancy


GTAI supports foreign companies seeking to establish business in

Germany. Our free of charge investment consultancy includes:

Financing and

Incentives

Tax & Legal Framework

Market and Industry Analyses

Location Proposals

Site Evaluation

Contact to local

Institutions

Project Management

Support

Market Data

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Investor Support Services


Our Tax & Legal Team assists you in understanding the tax and legal

framework in Germany.

INCORPORATION

Does my business activity

require a specific license?

What is the procedure for setting up a company in Germany?

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INCORPORATION




TAXATION

Can you support us in identifying attractive

locations?

Are there local variations of the overall corporate income tax rate in Germany?

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INCORPORATION




TAXATION

Can you support us in identifying attractive

locations?

Are there local variations of the overall corporate income tax rate in Germany?

HR

Are there different employment models available?

How do I register employees with social security?

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Our Financing & Incentives team assists you in finding suitable financing

solutions for your investment project.

INCENTIVES

What financial support does Germany offer to foreign investors?

How can I apply for incentives?

Are there specific programs for start-up companies and for R&D?

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Our Financing & Incentives team assists you in finding suitable financing

solutions for your investment project.

INCENTIVES

FINANCIAL PARTNERS

Could you provide us with contacts to German banks and/or other

financial partners?

What financial support does Germany offer to foreign investors?

How can I apply for incentives?

Are there specific programs for start-up companies and for R&D?

How should we approach these partners?





Agenda

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Incentives in Germany


Germany offers various public funding instruments for different

economic activities.

Incentives in Germany

Mezzanine Capital

Grants Loans Equity Capital

Guarantees

Public funding instruments:

Personnel Investments Working Capital

Specific Purposes

Research & Development

Funding for:

Financing supported by any of the following public funding instruments (combinations of instruments usually possible)

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Case Study: Skeleton Technologies from Estonia


“Germany's pioneering role in power electronics, it’s highly interconnected

R&D infrastructure and the pool of highly trained professionals provide the

ideal basis for our production facility in Dresden” (Taavi Madiberk, CEO)

• Founded 2009 in Estonia

• Industry: Energy Storage

• Target group: B2B

• Products: ultra-caps and tailor-made storage modules (5.4V to 128V)

• R&D location in Tartu, Estonia

• Manufacturing in Bautzen, Germany

• Investment: EUR 10 million

• Production of ultra-caps

• USP: Superior energy and power density

• New employees: 110 by the end of 2017

• First contact with Germany Trade & Invest: Ecosummit 2012

• German openings: Berlin (HQ) and Bautzen (Production)

Company profile

Milestones

Project data

Products

1 Sep 2009

3 Apr 2013 Raised €2,2 million in Round A financing

2016 Start of production in Germany 4

2 Introduction of new SkelCap series ultracapacitor family ranging from 2.47 to 12.53 kW

Jun 2012

Company formation

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Contact


© 2015 Germany Trade & Invest GmbH All information provided by Germany Trade & Invest has been put together with the utmost care. However, we assume no liability for the accuracy of the

information provided.

Financing & Incentives Mr. Friedrich Henle T. +49 30 200 099-503 [email protected]

Supported by the Federal Ministry for Economic Affairs and Energy on the basis of a decision by the German Bundestag.

Renewables, Environment & Resources Mr. Tobias Rothacher T. +49 30 200 099-225 [email protected]

Invest in smart green Germany and join our Energiewende2024. Expansion and Reinforcement...

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