Design and Impacts of the German Renewable Energy Act an Inspiration for a Feed-in Law for Egypt?

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1 Design and Impacts of the German Renewable Energy Act an Inspiration for a Feed-in Law for Egypt? Folie 1 > Vortrag > Autor About us DLR German Aerospace Center Aeronautics Space German Aerospace Agency Transportation Energy Folie 2 > Vortrag > Autor

2 Energy Efficient fossil power plants (turbo-machines, combustion, heat transfer) Solar thermal power facilities, solar chemistry, thermal storages Fuel cell technologies Systems Analysis and Technology Assessment Folie 3 > Vortrag > Autor Systems Analysis covers the whole life-cycle of energy use Resources Satellite-based analysis of RE-Resources GIS-based assessment of sites and potentials Technologies Life-cycle assessment, learning curves Cost analysis and cost reduction potentials Economy // Environment Scenario analysis Technological development paths under different framework conditions Society and and Policy Policy Macroeconomic effects Policy support instruments, market introduction mechanisms Folie 4 > Vortrag > Autor

3 Overview Introduction: Prices versus Quantities The German Electricity Market The German Renewable Resource Act (EEG) Impacts of the EEG Ecological Impacts Economic Impacts Industries Costs Employment Future Development - Outlook Folie 5 > Vortrag > Autor Dominating support schemes for RES-E E in the EU Feed-in tariff IE UK FR NL BE LU SE DK DE CZ AT SI IT PL SK HU EE LA LT FI Quota / TGC Feed-in tariff and Quota / TGC Tax incentives / Investment grants Other system PT ES GR MT CY A clear majority of EU countries uses feed-in tariffs as main instrument Ragwitz (2006) Folie 6 > Vortrag > Autor

4 Evaluation of the successes of the respective policies 1. Excellent: Target will be met by Realistic chances to meet the target 3. Additional efforts necessary to meet the targets 4. Large additional efforts necessary 5. Impossible to meet the targets European Commission Folie 7 > Vortrag > Autor SE IE PT UK ES FR NL BE LU DK DE CZ AT SI IT EE LA LT PL SK HU GR M Folie 8 > Vortrag > Autor

5 The German Electricity Market Liberalization starts in 1998 Negotiated Third Party Access until 2003 Regulated TPA since 2005 Federal Network Agency is the regulatory agency Grid operators : Organized in Association of German Network Operators (VDN) 4 large transmission system operators (RWE, EON, EnBW and Vattenfall) 52 regional grid operators, 357 municipal grid operators and 5 foreign grid operators. Total 900 grid operators Today: 85% of the German electricity capacities are owned by 4 companies, the two larger of these hold 60% of the total capacity Folie 9 > Vortrag > Autor Policy supporting Electricity from RES Stromeinspeisegesetz : Priority access, market price Renewable Energy Act: Fixed tariffs, priority access, cap on certain technologies, burden sharing, national equalization scheme Minor changes 2004 current version of EEG 2006 amendment Goals declared New tariffs Hardship rule Improved hardship rule Folie 10 > Vortrag > Autor

6 EEG basic idea Goal: Increase the share of renewable energy in electrity production to 12.5 % by Support technology development Central Elements: Priority access of renewable energy facilities to the grid Priority transmission of electricity from renewables Constant payments over 20 years for each facility (varying by year of initial operation) Technology specific (stepped) tariffs Tariff degression Nationwide equalization of burden. Folie 11 > Vortrag > Autor The Tariffs: Electricity from biomass ( cent/kwh)( Plant capacity Pure solid biomass Premium for untreated biomass CHP premium Premium for innovative technologies 150 kw kw kw kw - 5 MW MW - 20 MW Exceptions: Combustion of waste wood: 3.78 Cents/kWh Combustion of wood (500 kw - 5 MW): Tariff level is increased by 2.5 Cents/kWh (Premium for untreated biomass is not applicable) Landfill and sewage gas: 7.44 Cents/kWh ( 500 kw); 6.45 Cents/kWh ( 500 kw 5 MW) Folie 12 > Vortrag > Autor

7 The Tariffs: Electricity from wind energy ( cent/( kwh) Type On-shore wind farms Off-shore wind farms Initial (5+ years) Final (12+ years) At least 5.5 cents per kilowatt-hour For 5ys +3.2 cents/kwh: if >150 %of the reference yield calculated for the reference plant. All other:+2 months for each 0.75 % of the reference yield which their yield stays below 150 % If replace or modernise existing plants in the same rural district, which. at least triple the installed capacity (repowering plants) period extended by t2 months for each 0.6 % of the reference yield below 150 %. Offshore wind-power plants >3 nautical miles seawards from the shoreline get at least 6.19 cents/kwh. Built no later than 31 December 2010:+2.91 cents/kwh for 12 years. If located at least 12 nautical miles seawards and in a water depth of at least 20 metres: +0.5 months for each full nautical mile beyond 12 nautical miles and by 1.7 months for each additional full metre of water depth. Folie 13 > Vortrag > Autor The Tariffs: solar electricity ( cent/kwh)( Type On buildings or sound barriers Facademounted Other Up to 30 kw 57.4 ct/kwh 62.4 ct/kwh 45.7 ct/kwh 30 kw to 100 kw 54.6 ct/kwh 59.6 ct/kwh 45.7 ct/kwh From 100 kw 54.0 ct/kwh 59.0 ct/kwh 45.7 ct/kwh Folie 14 > Vortrag > Autor

8 Impacts of the RES Promotion Folie 15 > Vortrag > Autor Renewable Regenerative electricity, Stromerzeugung, TWh/a GWh/a Außerhalb StrEG EEG 62,4 des other EEG 57,5 48,7 45,8 39,1 36,7 30,5 26,9 25,4 24,5 23,0 23,2 20,4 21,2 18,5 17, EEG/STR-EEG; Folie 16 > Vortrag > Autor

9 Avoided emissions (m t CO 2 /a) Folie 17 > Vortrag > Autor Industry development The German market developed tremendously National market growth supported the German industry Highest capacity in wind turbines installed worldwide Surpassed Japan with grid connected PV capacity in 2005 PV industry is among the fastest growing industry in the world. Germany s Q-cell developed from rank 11 worldwide in 2002 to rank 2 in 2006 in terms of quantity produced and sold. EEG also pursued technology political goals and wanted to induce structural change. Especially the North and East German regions German inputs and products contribute 70% to the world market Folie 18 > Vortrag > Autor

10 Cost development wind ( 2000 /kwh) 0,300 0,250 0,200 /kwh 0,150 projection 0,100 0,050 0, Folie 19 > Vortrag > Autor Folie 20 > Vortrag > Autor

11 Thank you for your attention! Interesting links: Folie 21 > Vortrag > Autor

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