Biogas in Germany - Developments, Status Quo and Outlook. Sebastian Stolpp, Atlanta, GA, 1 Nov 2016

Transcription

1 Biogas in Germany - Developments, Status Quo and Outlook Sebastian Stolpp, Atlanta, GA, 1 Nov 2016

2 Agenda German Biogas Association The biogas market in Germany Legal framework Direct marketing Conclusion 2

3 over 400 honorary experts Member of the European Biogas Association (EBA) Name der Veranstaltung am xx.yy.2016 in Musterstadt German Biogas Association Steering Committee 7 members, elected for a 4-year-period Headquarters in Freising 23 employees, organised in 10 departments Board of Trustees Elected honorary spokesmen of regional groups, working groups and advisory boards Advisory Boards, Working Groups Advisory boards of plant operators, companies, the legal profession, funders; Working groups for the areas permissions, safety, feeding-in of biogas, environment, heat, waste and fertiliser law Berlin Office 6 employees Regional offices (North, South, East, West and Editorial Office Biogas Journal) 6 employees Operators of biogas plants Providers of feedstock Research Institutions 23 Regional groups in Germany Members Interested private individuals Public authorities Lawyers Companies and manufacturers Corporate finance Planners, advisers, laboratories 3

4 German Biogas Association Objectives: Promotion of the biogas sector Promotion of a sustainable energy supply Definition of legal framework for reliable and long-term investments Creation of adequate technical rules and standards Promotion of R & D Exchange of information Members service Lobbying on state, federal and EU level in the following fields: Renewable Energy Act (EEG) Energy management Regulatory approval Environmental laws Laws on agricultural issues Tax law 4

5 International Agenda of the German Biogas Association Name der Veranstaltung am xx.yy.2016 in Musterstadt International Affairs Department (7 staff members) Supporting members with information about the international biogas markets Biogas Convention and Trade Fair Supporting Biogas Associations, Biogas Know-How and Trainings worldwide Cooperation with international organizations promoting Biogas in Developing- and emerging countries 5

6 biogas.org Name der Veranstaltung am xx.yy.2016 in Musterstadt german-biogas-industry.com 6

7 Coming soon! Safety first!: Guidelines for the safe use of biogas technology 7

9 Structure of the German electricity production The electricity mix in Germany in 2015 With almost 196 Billions KWh renewable energies supplied 30,1% of the German gross electricity production and are therefore the most important energy source. Natural gas 59,6 bi. KWh 9.1% Hard coal 118,0 bi. KWh 18.1% Nuclear Energy 91,8 bi. KWh 14.1% Brown coal (lignite) 155,0 bi. KWh 23.8% Others 31,5 bi. KWh 4.8% Renewable energies 195,9 bi. KWh 30,1% Hydro 19,3 bi. KWh 3.0% Photovoltaic 38,4 bi. KWh 5.9% Biomass 50,0 bi. KWh 7.7% Wind (offshore) 8,7 bi. KWh 1.3% Wind (onshore) 79,3 bi. KWh 12.2% Source: Renewable Energy Agency As of

10 Number of biogas plants Installed electric capacity Name der Veranstaltung am xx.yy.2016 in Musterstadt Development of the stock of German biogas plants (07/2016) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 Number of biogas plants in Germany Installed electric capacity in Megawatt [MW] Over 4 GW Biogas electric installed capacity (~ 5%) 1,600 1,750 2,050 2,680 3,711 3,891 3,500 1,271 1,377 1,100 4,984 5,905 1,893 2,291 3,097 7,850 7,553 3,637 7,175 3,352 8,856 9,004 8,726 3,905 4,0184, , ,0501, Year Fachverband Biogas e.v. / German Biogas Association 10

11 Number of biogas plants and installed capacity (07/2016) 2014* 2015* Forecast 2016** Number of biogas plants + (biogas plants with biomethane injection) 8,726 + (167) 8,856 + (183) 9,004 + (193) Installed electric capacity in MW 3,905 4,018 4,166 Gross electricity production in TWh per year Households supplied with biogasbased electricity in millions CO 2 reduction by biogas in million tons Turnover in Germany in Euro 8.4 billion 8.2 billion 8.3 billion Jobs in the biogas sector 45,000 42,000 43,000 Fachverband Biogas e.v. / German Biogas Association * Own extrapolation based on country data/data from energy supplier ** Based on a expert survey 11

12 Possible feedstock Energy crops Industrial and commercial wastes Biowaste from households Vegetable byproducts Animal by-products Grass, maize, corn, potatoes, fodder beet, mustard, silage Organic residues from food, beverage or feed production, including catering waste and expired food Organic fraction of household waste (ideally separately collected biowaste), garden and park waste Harvest residues, straw, brewers grains, molasses, husks, beet leaf Liquid and solid manure, slaughterhouse waste like blood, feathers, whey, fat separator contents and flotation tailings Biogas plant 12

13 Feedstock in German biogas plants % by weight % by energy output Biowaste Liquid & solid manure Energy crops Industrial & agricultural residues Source: Motoringbericht DBFZ, June

14 Waste digestion plants in Germany About 400 plants for the digestion of biological wastes and residues Feedstock categories: Biowaste from households Industrial and commercial wastes Animal by-products Vegetable by-products Approved capacity ~ 8.9 Mio. Mg/a (Extrapolation of the German Biogas Association) Installed electrical capacity ~ 266 MW Average installed capacity: 665 kw 14

15 Possibilities for biogas use 15

17 German Renewable Energy Act (EEG) Priority of connection, purchase and transmission of electricity from renewable energy sources (RES). A consistent fee for this electricity paid by the grid operators for a 20- year period The core elements of the EEG guarantee : Mid and long term planning and investment security Calculable costs for consumers Specific fees for different technologies Low bureaucratic effort Participation for local and regional players 17

18 Development of the Renewable Energy Act EEG ( ) Consistent fee for 20 years Priority connection 250 new plants a year EEG 2000 EEG 2004 Bonus for energy crops Bonus for using heat 450 new plants a year Bonus for new techniques Bonus for emission reduction Bonus for manure 1000 new plants a year EEG 2009 EEG 2012 New system New requirements on efficiency and ecology 340 new plants a year EEG 2017 EEG 2014??? 200 new plants 18 in 2015

19 EEG 2017 Tender volume: = 150 MW installed capacity/year = 200 MW installed capacity/year Yearly tenders (start: 1st Sept. 2017) Participation in the tenders: All existing plants and new plants > 150 kw ínst. Capacity New plants < 150 kw inst. capacity receive fixed FiT small manure plants not included in tender system Max. bidding offer for new plants: ct/kwh Max. bidding offer for existing plants : 16.9 ct/kwh Degression on FiTs (0.5%/semester) und max. offers (1% /year) EEG

20 Support for new plants in the EEG 2017 Special Feed-in-Tariffs (FiTs) for (no participation in the tender process): Small manure plants: < 75 kw inst. capacity: ct/kwh Biowaste treatment plants: < 150 kw inst. capacity : ct/kwh Biomass: < 150 kw inst. capacity: ct/kwh > 150 kw inst. capacity: participation in tender process Max. bidding offer: ct/kwh Proof of approval > 100 kw obligatory direct marketing and flexibility: double installed capacity. > 100 kw: flexibility premium: 40 /kw of inst. capacity per year EEG

22 Capacity [GW] Name der Veranstaltung am xx.yy.2016 in Musterstadt The new role of biogas in electricity production: Flexibility instead of base load 20 % Renewable Energy Sources 40 % Renewable Energy Sources With increasing share of RES base load loses importance Flexible systems fill the valleys of the wind and sun 80 % Renewable Energy Sources CHP with bioenergy & natural gas New role of biogas red Demand (2010) green Production Wind & Solar 22

23 Direct Marketing The basic condition of direct marketing is that the electricity is not supplied to the grid operator but sold to an electricity trader. Three different forms of direct marketing The plant operator does not change the way the plant operates The electricity trader can control the plant remotely The plant operator and the electricity trader agree on a fixed schedule. 23

24 How does direct marketing and FiT of the EEG combine? Name der Veranstaltung am xx.yy.2016 in Musterstadt By channeling the generated electricity through a public grid Market premium, flexibility premium Direct transmission to consumers Biogas plant No direct marketing Public grid Biogas plant Public grid 24

25 Market premium The biogas plant operator can combine direct marketing with the Feed-in Tariff of the EEG = Market Premium The biogas plant adheres to the requirements of the EEG and will also be reimbursed according to the statutes of the EEG but the electricity will be sold to an electricity trader. The biogas plant has two sources of income: Market premium: payed by the grid operator Revenue of direct marketing: payed by the electricity trader 25

26 The market premium principle Market premium = Feed-in tariff monthly market value at the electricity exchange The plant operator has to get the monthly market value from his electricity trader Will be paid by the grid operator Feed-in tariff EEG Market premium More revenue More revenue of direct marketing Monthly market value Revenue of direct selling Will be paid by the electricity trader 26

27 Flexibitlity premium If biogas plants can store the gas and provide additional capacity for electricity production they can apply for the flexibility premium / flexibility surcharge in addition to the market premium. A flexibility premium will be paid for extra capacity: For example: A biogas plant is operating with an average of 100 kw, 200 kw are installed at the plant and there is a big gas storage, so the plant can get the flexibility premium for its ability to produce more electricity in case it is needed. Flexibility premium is an additional premium to market premium. Direct marketing and market premium can be used by all other renewable energies. Flexibility premium is only for biogas plants! 27

28 Market premium and flexibility premium Flexibility premium More revenue Revenue from electricity trader Additional revenue for direct selling and flexibility premium Will be paid by the electicity trader Will be paid by the grid operator Market premium 28

30 Conclusions Germany is a frontrunner in renewables Biogas is as an all-rounder and a key in the energy mix (reduction of emissions, flexible electricity production, heat/cold, biomethane, fertiliser) Three main trends in Germany: 1. Feedstock: manure/waste - no energy crops 2. Flexibility: balancing the fluctuating power generation 3. Export business of the manufactures (60%) Various technologies are available for the digestion of waste and residues Huge potential and interest for biogas worldwide (biowaste digestion, agricultural residues, industrial residues and waste) know-how is necessary Local circumstances are a major aspect of finding the right approach and technology Lots of experience in Germany! 30

31 15-17 November 2016 BIOGAS Conference & Trade Fair / Hanover parallel to EnergyDecentral Biogas Basics! Know-How Transfer! International Panel on Development & Emerging Countries! Best practise on waste digestion and exotic feedstock! 31

32 Thank you for your attention! German Biogas Association Sebastian Stolpp