Bioenergy in Germany. Legal Framework and Market Development. Energy. June 23, 2009, Syracuse (NY)
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1 Energy Bioenergy in Germany Legal Framework and Market Development June 23, 2009, Syracuse (NY) Stephanie Nsom, MBA, DESCM, Dipl.-Kffr. German Energy Agency (dena) on behalf of the German Federal Ministry of Economics and Technology
2 Ownership Structure of the German Energy Agency
3 Fields of Competence and Activities at dena
4 Current EU renewable energy targets 20% share of renewable energies in the total energy consumption in the EU by % share for biofuels in petrol and diesel by % reduction of greenhouse gases by 2020 (1990) 20% progression in energy efficiency by 2020
5 German Energy Policies in Transition - Milestones 29 Key Elements of an Integrated Energy Climate Change Programme (Decision of German Cabinet at Meseberg, August 07) German government s energy and climate package (Decision of German Cabinet in December 2007, follow-up June 2008) Amendment to the EEG (Electricity) Amendment to the Gas Grid Access Ordinance Design of EEWärmeG (Heat) Meeting of the cabinet, Meseberg, 23./24. August 2007
6 German Targets for Renewable Energy 91,4 TWh 2008: 237,7 TWh 108,7 TWh 37,7 TWh 994,9 PJ Source, BMU 2009
7 Development of bioenergy in final energy consumption Long-term Potential 8,2% 9,8% 25% Source, BMU 2009
8 Germany - Legal Framework for RE Power Production I Renewable Energy Sources Act (EEG) Further development of the Power Feed-In Law StrEG of EEG replaces StrEG Priority for feed-in of renewable energies Extensive regulation of grid access Purchase price regulated by law Tariffs measured according to competitiveness of each technology Degression measured according to sophistication of each technology EEG apportionment (additional costs are passed on to consumers via electricity bill) = no subsidy!
9 Feed-in tariffs under the EEG for 2009 (excluding bonuses). Duration (yrs) Hydropower (< 5MW) 20 (15> 5MW) Cent/kWh Degression % (1.0% >5MW) Biomass % Sewage and landfill gas, biogenic share of waste % Geothermal energy % Wind energy (onshore) % Wind energy (offshore) % (as of 2015) Photovoltaics % (9% as of 2011)
10 Bonus regulations under the EEG for biomass, 2009 Technology bonus Gas reprocessing 1,0 2,0 -Cent/kWh ( Nm 3 ) (<=20 MW) Innovative installation engineering 2,0 -Cent/kWh (<=20 MW) Adherence to limit values of formaldehyde (biogas) 1,0 -Cent/kWh (<= 0,5 MW) Bonus for electricity from renewable raw materials Energy crop bonus biomass 4,0 6,0 -Cent/kWh (<= 5 MW) Combustion of wood 2,5 6,0 -Cent/kWh (<= 5 MW) Energy crop bonus biogas 7,0 11,0 -Cent/kWh (NaWaRo-Bonus including manure bonus or rural conservation bonus) (<= 0,5 MW) CHP-bonus: 3,0 -Cent/kWh (<=20 MW)
11 Break Down of Electricity Costs for Private Households 25 Average household with kwh/year: 3,10/month (2008) 20 18,0 18,6 19,4 20, ,3 16,1 Turnover tax Electricity tax Cent/ kwh 10 Concession levy EEG CHP Act Generation, transportation, distribution Source: BMU 2007
12 Structure of RE Power Generation, 2008 Total: 91.4 TWh Source: BMU April 2009
13 Biogas Utilization Today Increasing plant capacity (average 500 kwel). Entering of new players (energy utilities). Inefficient use of heat from biogas plants due to limited (local) heat sinks (CHP utilization < 70% of installed capacity). Feed-in into the national grid (prospects) Decoupling of production from utilization (favorable laws) Share of biomethane/natural gas: 6% 2020, 10% 2030 Ongoing projects: 14 in commission, 17 under construction
14 Legal Framework for RE Heat Production I Renewable Energies Heat Act (EEWärmeG) Obligation to use renewable heat sources in new buildings > 50 m² Minimum share of heat demand with RE: min. 50% with biomass in high efficient systems, or min. 50% with biofuels when sustainability is certified, or min. 30% with biogas district heating if provided by a CHP plant, or min. 50% with heat pumps, or min. 15% with solar energy. > buildings per year, thereof residential, and non-residential houses Increased share of RE in heat production by 2,8 4,7% by 2020 Facilitation of heating grid expansion
15 Legal Framework for RE Heat Production II The Market Incentive Program (MAP) Since 1999 support of RE heating systems Budget (p.a.): 500 Mio. (213 Mio. 2007) Subsidies modern ovens for split logs/pellets, condensing boilers for private households, commercial applicants, public institutions, etc. Long-term and low-interest loans and/or partial release of depth construction of biomass plants, CHP, heat storage vessels, equipment for biogas conditioning, grids for raw biogas, district heating grids Increased share of RE in heat supply from 6,6% in 2007 by 3,6 4,8% by 2020 (add up to 14% in total)
16 Structure of RE Heat Supply, 2008 Total: TWh Source: BMU April 2009
17 Development of biofuel supply Source: BMU April 2009
18 Legal Framework for Biofuels Tax exemption for pure biofuels until July 2006 (full tax: 47,04 Cent/ l) Annually decrease of tax reduction for pure biofuels, first generation as from Aug (see table for pure biodiesel) (Annually) increase of mandatory blending in conventional fuels Quota in 09 at 5,25%, from at 6,25% Tax exemption for biofuels 2nd generation (BtL, CellulosicEtOH) until 2015 Source: UFOP 2006 Year Quota Tax reduction Tax kal. % Cent/ l Cent/l Aug ,04 9, ,40 39,94 9, ,40 33,64 15, ,25 27,34 21, ,75 21,04 27, ,00 14,74 33, ,25 2,14 45, ,50 2,14 45, ,75 2,14 45, ,00 2,14 45,08
19 CO 2 avoidance via the use of renewable energies, 2008 bio energy in total: 57.2 million t (51%) Source: BMU April 2009
20 Total turnover from renewable energies, 2008 Total: 28.7 bill. EUR Source: BMU April 2009
21 Jobs in the German RE sector, Source: BMU April 2009
22 Renewables Made in Germany 3 catalogues and CD-Rom (edition of ) Technology Exhibition Imagefilm Website: Online-Forum b2b: Newsletter
23 Organized by the German Energy Agency (dena) and the German American Chambers of Commerce (GACC) 4 day conference on renewable energies in the U.S. Over 500 participants from business and government In the context of the Transatlantic Climate Bridge Under the patronage of Foreign Minister Dr. Frank-Walter Steinmeier High German political support: Economics Minister Dr. Karl-Theodor zu Guttenberg Environment Minister Sigmar Gabriel Next German American Energy Conference planned to take place in March 2010 in Berlin 1 st Event on renewable energies and energy efficiency in the U.S., NY, November 2 3, 2009
24 dena project: biogas partner Cooperation platform to support biomethane feed-in Provides information and enhances transparency about political, technical and economical aspects Brings together all sorts of stakeholders involved in the biomethane production chain Tools: Website as a cooperation platform Conferences, brochures, etc. Contest: biogas partnership of the year Biogas partner goes international in
25 Energy Thank you. Deutsche Energie-Agentur GmbH (dena) German Energy Agency Stephanie Nsom Chausseestr. 128a Berlin Germany Tel: +49 (0)
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