Renewable Energies in Germany

János Büchner, energiewaechter GmbH

Consultant to the Initiative “renewables – made in Germany” of the German Federal Ministry of Economics and Technology (BMWi)

Serbian-German Conference & Trade Mission on Geothermal Energy, Belgrade, 25. September 2012

www.renewables-made-in-germany.com

www.exportinitiative.bmwi.de

Content

The Initiative renewables – made in Germany Political developments and framework for REs in Germany Market development of REs in Germany and economic effects Geothermal Energy and Heat Pumps in Germany Presentation of German Company representatives

The Initiative renewables – made in Germany

Goals of the Initiative renewables – made in Germany

Scheme coordinated and financed by the Federal Ministry of Economics and Technology

Contribution to global climate protection through support of advanced RE-technologies

Contribution to international knowledge transfer through patents and joint ventures

Support of German SMEs entering foreign RE markets

The Initiative renewables – made in Germany 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

RE development in Germany and economic effects

Germany’s Energy Turnaround in 2011

Fukushima led to Germany’s energy turnaround by cabinet decision in June 2011: Nuclear power phase out until 2022…

…while keeping the aim to reduce GHG-emissions until 2020 by 40% and until 2050 by 80% (compared to

1990) Increase share of Renewables to 35% of electricity consumption by 2020, by

2030 to 50%, 2040 to 65%, 2050 to 80% Increase final energy consumption share of REs to 18% in 2020, 45% in 2040

Positive effects Cutting dependency on fuel imports Creation of jobs in a future market / employment in the RE sector

Main Instrument to Promote REs (ELECTRICITY production)

Act on Granting Priority to Renewable Energy Sources (EEG)

Fixed Feed-In tariffs (FITs) over 20 years guaranteed by law for RES system operators

Grid operators are obliged to connect RES systems to the grid and to buy the electricity from the system operators to set prices

Tariffs vary according to the source of energy, e.g. biomass, PV, geothermal energy etc.

Amendments to the EEG at regular intervals in order to adjust the act to current development of markets and (competitiveness of) technologies

Example: FITs for geothermal electricity production increased 2012. Depending on technology up to 23, 25 or even 30 ct/kWh (e.g. petrothermal projects) . Gross production factored (incl. own energy consumption of pumps etc.) FITs for Photovoltaics - in contrast - decreased

Renewable Energies Heat Act (EEWärmeG) 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) 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

Main Instruments to Promote REs (HEAT production)

Germany’s Energy Turnaround today

Act on Granting Priority to Renewable Energy Sources remains major instrument to boost Res

Challenges:

R&D promotion for energy storage technologies Increase of energy saving and efficiency Speed-up grid expansion

Development of RES in Germany-

some figures

Renewable Energy Sources Shares of Total Final Energy Consumption in Germany 2011

Source: Development of renewable energy sources in Germany 2011 provided by BMWi

Share of Renewables in Energy Consumption 1998-2011 ELECTRICITY 2011 roughly 20% but some 50% of energy consumption through HEAT production

Credits: German Renewable Energies Agency

Energy Use of PRIVATE Households in Germany According to Area of Application

Space heating71,6%

Hot water13,3%

Other process heat5,5%

Ambient cooling0,0%

Process cooling3,9%

Mechanical energy0,7%

ITC3,4%

Lighting1,7%

Source: Arbeitsgemeinschaft Energiebilanzen provided by BMWi

1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110%

2%

4%

6%

8%

10%

12%

Development of RES Share in Reference to Heat Production

Source: Federal Ministry of Environment 2012

Structure of Renewable-based Heat Supply in Germany 2011

Source: Development of renewable energy sources in Germany 2011 provided by BMWi

Federal Government‘s Targets

Almost 1/3 of the GHG-emissions are due to buildings

2011 4,3 % of the national heat consumption was supplied by shallow geothermal energy.

Heat supply share of REs planned to reach 14% by 2020

Potential: 261 bl. kWh, actually 6 bl. kWh installed.

Forecast: 2015 almost 1 m, and 2020 1.8 m heat pumps installed

Picture: Bundesverband Wärmepumpe

Some figures: private households consume 30% of final energy consumption. Almost 90% used for heating purposes.

Near-surface Geothermal Energy Utilities for Heat Allocation in Germany (5.900 GWh)

Source: Development of renewable energy sources in Germany 2011 provided by BMWi

Benefits of RE promotion

Renewables in Germany: Growth of Total Employment, 2004-2010

Jobs in the renewable energy sources sector in Germany

3,400

9,500

56,800

63,900

4,500

8,100

119,500

85,700

6,500

14,500

7,800

102,100

7,500

13,300

7,600

120,900

122,000

96,100

1,800

25,100

10,300

49,20080,600

128,000

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000

Geothermal energy

Hydropower

Solar energy

Biomass

Wind energy

Increase: approx. 129 %

Figures for 2009 and 2010 are provisional estimate; deviations in totals are due to rounding;Source: O’Sullivan/Edler/van Mark/Nieder/Lehr: "Bruttobeschäftigung durch erneuerbare Energien im Jahr 20010 – eine erste Abschätzung", as at: March 2011; interim report of research project „Kurz-

und langfristige Auswirkungen des Ausbaus erneuerbarer Energien auf den deutschen Arbeitsmarkt“; image: BMU / Christoph Busse / transit

Publicly funded research /

administration 2004 2007 2009 2010

160,500 jobs

277,300jobs

367,400 jobs

339,500jobs

Renewable Energies in the Hands of the People (example ELECTRICITY production)

Credits: German Renewable Energies Agency, 2012

Meet the representatives of German companies!

German Companies

AP Sensing GmbH Enhanced Geothermal Response Test (EGRT) – Systems for determining

thermal soil parameters (thermal conductivity, borehole resistivity) Contact: Mr. Clemens Pohl

360plus Consult GmbH Consulting, planning, delivery of required authorizations. Partner in all project

stages in the search for energy sources Contact: Dr. Wolfgang Bauer

German Companies

Geothermeon AG Geothermal project developer: prospection, exploration

and development of geothermal energy resources Contact: Mr. Ralph Weidler

Soundcore GmbH sonic rigs, HF technology Contact: Mr. Paul Eisenkolb

German Companies

Geothermie Neubrandenburg GmbH Engineering & geo technical expertise and solutions for

geothermal projects Contact: Dr. Peter Seibt

Perforator GmbH Drill pipes, drilling equipment and tools Contact: Mr. Wolfgang Waide

Many thanks for your attention!

Have a fruitful event day!

Contact:János Büchner, energiewaechter GmbH

E-Mail: jb@energiewaechter.de