Northern German Energy Transition. Innovation Alliance of Hamburg and Schleswig-Holstein for Future Energy Systems

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1 Northern German Energy Transition Innovation Alliance of Hamburg and Schleswig-Holstein for Future Energy Systems

2 »NEW 4.0«is a unique project initiative in Hamburg and Schleswig-Holstein combining the forces of business, science and politics.»new«stands for the Norddeutsche Energie- Wende (Northern German Energy Transition) and»4.0«refers to the brink of the fourth industrial revolution: the digitisation of industry resulting from the smart networking of systems, an increasingly important component in the energy transition. As a large-scale transnational project, the aim of NEW 4.0 is to achieve a sustainable energy supply and thereby ensure the future viability of the region. More than 50 partners from the region are combining all necessary competencies and solution potentials to accelerate the energy transition in Northern Germany.

3 The Model Region The alliance merges Hamburg and Schleswig-Holstein into an ideal model region for the»show-case Smart Energy«funding programme of the Federal Ministry for Economic Affairs and Energy (BMWi), with particular focus on wind energy. By generating 40 percent of energy demand 1 from renewables, on an annual base, the region has already achieved the expansion corridor 2 targets that the Federal Republic of Germany has pledged to reach by As a showcase, the model region must prove its ability to cope with extreme imbalances in the generation and load situation. While Hamburg represents a high-demand area, with only 3 percent of the demand covered by renewable energies, Schleswig-Holstein can theoretically meet almost all of its demand with renewable sources, and is accordingly exporting its power increasingly often. With an increasing amount of ofshore wind farms, connecting to the region s transmission grids, and given its central geographic location between consumption centres to the south and Scandinavian storage power plants to the north, the region is also developing at international level into an energy hub of Northern Europe. It should be possible to extrapolate the generation/load imbalance problem in the region to other German and European regions: A practical test is underway to demonstrate what a unique opportunity the energy transition presents and how the necessary transformation of the energy system can succeed. NEW 4.0 thus showcases how the economic region and its population of 4.5 million can already receive a stable supply from 100 percent renewable energy as of The project will also create new marketing opportunities for the companies involved and strengthen their competitiveness in a growing future market. Important beneits for the Federal States include boosting of the regional economy, creation of new industrial value chains and the associated securing and creation of jobs, where Hamburg and Schleswig-Holstein will expand their role as a leading centre of innovation. 1Figures refer to power consumption in the region Hamburg/Schleswig-Holstein 2Coalition agreement of the German Federal Government

4 The Aims NEW 4.0 aims to propel the energy transition of the north to completion and, in particular, to spur on the development of potential solutions for the energy transition. That means full integration of renewable energies into an innovative, sustainable energy system. A core task in this endeavour is to create a lexible and smart network of generators and consumers, involving all components connected to the power grid. Novel concepts for system control and integration must be found to put the smart link between generation, distribution, storage and consumption into practice. Key aims are to lexibilize power consumption to entirely new dimensions and, unlike the existing approach, to adapt consumption to a luctuating generation. Furthermore, NEW 4.0 will address issues of future market design, the relationship between market partners and the need for regulatory adaptations, and will thereby lay essential foundations for the success of the energy transition as the share of renewable energy feed-in rises. The aim is therefore to develop an integrative system control that encompasses the following tasks: improving the utilisation and relief in the transmission grid, to avoid congestions, and feed-in management (such as shutting down wind farms in response to grid overload), retroitting and optimising grids to increase their capacity, increasing the»local energy utilisation share«, i.e. consumption of local renewable energies in the region, by suitable eiciency and lexibility concepts, innovative, grid-friendly system management of renewable generators, thereby reducing harmful CO2 emissions by signiicant reduction of fossil energy generation, and creating market-based and regulatory incentives to adapt consumption to the expected generation and market integration of storage systems. NEW 4.0, as a showcase for Germany and Europe, will illustrate how a sustainable energy supply is possible and how the energy transition presents a unique opportunity to achieve it.

5 The Innovation Alliance Around 50 partners from all sectors and along the entire value chain of the energy sector have joined forces to make Germany s project of the century»energy transition«happen now in the North. Members include grid operators TenneT, HanseWerk, Stromnetz Hamburg and Schleswig-Holstein Netz, energy suppliers such as Hamburg Energie and Vattenfall, several public utilities such as Stadtwerke Norderstedt, Glückstadt and Flensburg, and technological companies such as Siemens and HanseWerk Natur. Partners involved on the generation side include manufacturers of wind turbines as well as operators and operator associations such as ARGE Netz. Project partners on the consumption side are service providers and producers, energy-intensive industrial operations such as Aurubis, Arcelor Mittal and Trimet in Hamburg and the ChemCoast Park in Brunsbüttel, as well as the Hamburg port and airport. The involvement of wind turbine manufacturers such as Nordex and companies from the IT sector such as cbb software GmbH and many other partners midsized enterprises, political and administrative bodies and even private households creates the special width, heterogeneity and plurality of the Alliance. This combination gives the Alliance its holistic competence for inding solutions. The project furthermore has strong scientiic partners such as the Fraunhofer ISIT (Institute for Silicon Technology) Itzehoe, CC4E of the HAW Hamburg, the Hamburg University of Technology (TUHH), the University of Hamburg, the Helmut-Schmidt University, the universities of applied sciences FH Lübeck, FH Kiel and FH Flensburg, and the Hamburg Institute of International Economics.

6 The Innovation Alliance

7 The Funding Programme In the funding programme»showcase Smart Energy Digital Agenda for the Energy Transition«of the BMWi, model regions shall develop and widely demonstrate solutions for a climate-friendly, eicient and safe energy generation with a large share of renewable energies. Two showcases are planned for the funding programme, of which at least one will focus on wind energy and at least one will focus on photovoltaics. The model regions will demonstrate how smart grids based on, temporarily, up to 100 percent renewable energies and exploiting all options of generation and load management can guarantee system reliability and contribute towards security of supply. They will also demonstrate how the grid and market could interact in the smart energy system. The essential target criteria are system stability, security of supply, afordability, signiicant contribution towards meeting climate protection targets, and public acceptance. Funding body Funding programme Federal Ministry for Economic Afairs and Energy (BMWi)»Showcase Smart Energy Digital Agenda for the Energy Transition«(SINTEG) Anticipated project start January 2016 Project duration Number of consortium partners Investment volume 4 years Approx. 50 partners Approx. 130 million

8 Project Management Prof. Dr. Werner Beba Matthias Boxberger Dr. Martin Grundmann Dr. Oliver Weinmann Michael Westhagemann Deputy Director of CC4E, Hamburg University of Applied Sciences Chairman of the Management Board, HanseWerk AG Managing Director, ARGE Netz GmbH & Co. KG Managing Director, Vattenfall Europe Innovation GmbH Chairman of the Management Board, Industrieverband Hamburg Project Steering Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft

9 Contact Frank Burkert, LL.M. Partner Dipl.-Volkswirt Dipl.-Kaufmann Master of IP Law and Management EMEIA Leader Global R&D and Innovation Services, EMEIA Tax Center Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft Rothenbaumchaussee 78, Hamburg, Germany Oice: Mobile: frank.burkert@de.ey.com Website: Assistant: Nicole Bonni Phone: nicole.bonni@de.ey.com

10 Publisher: Project Management NEW 4.0 in cooperation with Ernst & Young GmbH Editors: Jenny Capel, Prof. Dr. Werner Beba Design: Pia Schröer CC4E of the HAW Hamburg, May Photo credits: - HanseWerk AG: p. 3 left, p. 4 left & middle, p Ernst & Young: p. 3 right, p. 5, p. 7 - Hamburg Marketing: p. 1 photo: / Christian Spahrbier, p. 2 photo: / imagefoto.de, p. 4 right photo: / Andreas Vallbracht - Fotolia: p. 3 middle