The ENERGIEWENDE The Transformation of the German Energy System

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1 The ENERGIEWENDE The Transformation of the German Energy System 15th Czech Energy Congress April 2015 Peter Fischer Deputy Director-General for Globalisation, Energy and Climate Policy Federal Foreign Office

2 What is the Energiewende? EU + International relations Nuclear phase-out Social issues, public acceptance Conventional power plants Energy efficiency Agriculture Mobility Renewable heat and power Grid upgrade Storage Electricity market reform Households + consumers Finance and investors Technology, Research, IT, smart meters The Energiewende is a fundamental and multidimensional restructuring of the energy supply system. It is NOT limited to the power sector but goes far beyond that. Source: RENAC 2

3 The Energiewende started decades ago Electricity Feed-in law Fukushima, Energiewende package, nuclear phase-out Last nuclear plant to be shut down Target year for Energiewende targets TIME The Energiewende is a medium and long-term process. It started decades ago and will have impacts beyond Source: RENAC 3

4 Objectives of the Energiewende Secure and reliable energy supply Environmentally sound energy supply Affordable and cost effective energy supply An affordable, reliable and environmentally sound energy supply by 2050 is the ultimate aim of the Energiewende. These aims are interlinked. Source: BMWi 4

5 Benefits of the Energiewende The energy transition has positive effects on various levels. Source: BMWi

6 Pillars and action fields of the Energiewende Supporting fields of action Renewable Energy Market and system integration Energy Efficiency Key legislation: Renewable Energy Sources Act Renewable Energy Heat Act Energy research and development Key legislation: Energy Saving Ordinance Heating Cost Ordinance Steady growth Environmentally friendly European energy and climate policy Reduce energy consumption Cost-efficient The Energiewende is based on renewable energy and reduced energy consumption. Source: BMWi

7 Integrated policy package for the Energiewende Electricity Guaranteed feed-in tariffs for renewable energies Priority access for renewable energies Nuclear phase-out Heating Renewable Energies Heat Act Market Incentive Programme (MAP) Transport Biofuel quota and tax incentives for biofuels Governmental plan on e-mobility Research & Development (Sixth) Energy Research Programme (Federal Government) Public research funding > 150 million in 2012 The German energy system is being transformed in all sectors. Source: BMWi 7

8 Renewable Energy Sources Act Amendment 2014 More coordination Binding target corridors for RES deployment Introducing quantity control mechanisms More efficiency Focus on cost-efficient technologies More market integration Increase market integration through premium system Tendering scheme for ground-mounted PV More diversified distribution of costs EEG levy on self-supply Adjusted exemptions for the industry Affordability Environmentally friendly energy supply Security of supply More Europe Open auctioning scheme for European neighbours Germany is maintaining ambitious goals, but is optimising mechanisms and increasing market integration. Source: BMWi

9 Renewable energy policy frameworks NREAPs Targets Renewable Energy Directive Emissions Trading Directive Energiekonzept (2010) Renewable Electricity Act (EEG 2014) Renewable Heat Act (2009) EU policy Policies in Germany Germany s Energiewende policy is deeply embedded into the EU framework. Source: BMWi

10 Targets of the Energiewende until 2050 Achieved Climate % greenhouse gas reduction (vs. 1990) -27% to -95 Renewable Energies Energy Efficiency % electricity consumption % final energy consumption % primary energy consumption (vs. 2008) energy productivity 27,8% 12%* -8,9 % +1.2% p.a* to to % p.a building renovation ~1% p.a.* doubling of renovation rate: 1% 2% *2013 Germany has set itself ambitious targets in emissions reduction, renewables, energy efficiency. Source: BMWi 10

11 MTOE MTOE Energy supply in Germany and Czech Republic Energy production in Germany (in Mtoe) Energy production in the Czech Republic (Mtoe) Energy production in Germany is characterized by fossil fuel and an increasing share of renewables. The Czech Republic has high shares of coal and nuclear power. Source: IEA

12 Power flows between DE and CZ (in TWh) Exports of electricity: DE -> CZ 2010: 0,56 TWh 2011: 1,88 TWh 2012: 2,66 TWh 2013: 2,44 TWh 2014: 3,83 TWh Exports of electricity: CZ > DE 2010: 9,40 TWh 2011: 9,41 TWh 2012: 8,41 TWh 2013: 9,40 TWh 2014: 6,26 TWh 6,3 3,8 Germany is a net exporter of electricity to its neighbours in general but a net importer of electricity from the Czech Republic. Source: Data provided by ENTSO-E

13 Conclusions The Energiewende is realized in accordance with our common EU energy and climate policy goals and the EU long-term vision for 2050 and in close coordination with all EU partners. The German Energiewende and EU energy policy share the same goals: reliable, affordable and sustainable energy supply. The EEG 2014 amendment paved the way for a better system and market integration of renewables, thus reducing costs. Challenges like cross-border power flows are a phenomenon of the internal market. It is addressed in bilateral consultations, regional fora and at the EU level. Better coordination of TSOs, additional interconnector capacities, phase shifters and the grid upgrade in Germany will further reduce unplanned flows. The successful continuation of the Energiewende relies on the close coordination with EU partners. 13

14 THANK YOU

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