Energy Structure NCs - Germany- (update 2016)

Energy Structure NCs - Germany- (update 2016)

Basic facts Area: 357 168km² Population: 81 272 000 (2015) 4 TSOs 883 DSOs (source: BNetzA) 45 Mio. consumers (source: BNetzA) Peak load: approx. 86 GW (source: German TSOs) Average interruption of electricity (2014): <12 min (unplanned interruption without exceptional contingencies (source: VDE)) 1

Germany in the European meshed grid Interconnectors to: Austria; Czech Republic; Denmark; France; Luxembourg; Poland; Switzerland; The Netherlands. Source :ENTSO-E 2

Grid facts and characteristics The electricity grid in Germany is sub-divided into transmission grids (maximum voltage) and distribution grids (high, medium and low voltage) Voltage Level Total length (approx.) Transmission Grid 380kV 20 000 km TSO Transmission Grid 220 kv 16 000 km TSO High Voltage 60 kv to 110 kv 77 000 km DSO Medium Voltage 6 kv to 60 kv 479 000 km DSO Low Voltage 230 V or 400 V 1 123 000 km DSO Responsibility Source :BMWI 3

Structure of electrical power supply TSO-Grid 380 kv Conventional Generation TSO Bulk-Industry 220 kv 110 kv Utilities Industry DSO-Grid 20/10 kv 380 V Dispersed Generation Households DSO Source : Amprion GmbH 4

High Voltage Grid Source : FNN 5

The 4 German TSOs Amprion TenneT 50Hertz Transnet BW 50Hertz Network length [km] (380 kv) 5.300 5.800 6.870 1.970 Network length [km] (220 kv) 6.100 5.300 2.870 1.721 Amprion Served area [km²] 73.100 140.000 109.000 34.600 TenneT Annual transmission [TWh] 27 20 18 11 TransnetBW Share load [%] 35 32 19 14 Source : German TSOs http://www.amprion.net/en/ http://www.tennet.eu/de http://www.50hertz.com/en/ https://www.transnetbw.com/en 6

Cooperation of TSO and DSO: Cascade in Generation Dispatching of Renewables In case of (n-1)- security violations in the EHV-grid due to high dispersed generation TSO and DSO collaborate to lower the infeed of renewable generation in DSOs grid. TSO initiates and DSOs operate these measures according following cascade: Transmission grid TSO Distribution grid 1. Level DSO DSO Distribution grid 2. Level DSO DSO Distribution grid n. Level DSO DSO Source: BDEW Grid area Generation Load 7 Hallo 7

Responsibilities within the cascade TSO monitoring the overall system Responsibility for SoS* Operative contact to DSOs / generators on TSO-Level Requests support by the DSOs TSO Support of industrial customers to SoS through decreasing / increasing load End user can be disconnected DSO Cascade Consumers Monitoring own system Operative contact to generators on DSO-Level Support of TSO to operate the cascade *SoS = Security of Supply Generation facilities Support of TSO / DSO to SoS through decreasing / increasing the power of generation units 8

Power structure Germany Lignite Hard Coal Natural Gas Nuclear Power Oil Other Gas Waste Refinery Gas Furnace Gas Oil Residue Wind Hydro Biomass PV Power Plants > 100 MW Source: Umweltbundesamt 9

Installed capacity with reference to primary resources installed capacities [GW], 2014 photovoltaics wind power hard coal-fired gas-fired lignite-fired nuclear power hydro power biomass oil others 0 5 10 15 20 25 30 35 40 GW source: BMWI 10

Energy production with reference to primary resources electricity generation [TWh], 2015 lignite-fired hard coal-fired nuclear power gas-fired wind power biomass photovoltaics hydro power oil others 0 20 40 60 80 100 120 140 160 TWh source: BMWI 11

35% 30% 25% 20% Development of Generation Capacity since 2010 (share of primary energy) Others Gas Renewables Lignite Hard coal Nuclear 15% 10% 5% 0% 2010 2011 2012 2013 2014 2015 Source: Amprion GmbH 12

Consumption power consumption by consumer groups, 2014 public institutions 9% agriculture 2% transport sector 2% business sector 15% industry 47% households 25% Source: BDEW 13

Renewables 14

Location of RES Installed Wind turbines Installed PV panels Source: IWES 15

Development of Wind Power 4.500 MW 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 0 Development of Capacity Accummulated Capacity (End of Year) 793 8.754 505 534 428 6.095 309 4.445 42 74 155 2.875 110 193 334 643 1.1371.5462.082 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 40.580 45.000 MW 40.000 36.437 4.143 3.247 32.855 35.000 30.800 3.582 28.300 30.000 2.659 2.645 26.387 24.980 2.500 23.100 25.000 21.500 2.037 2.055 1.871 19.700 1.880 1.913 20.000 1.568 1.665 1.800 18.500 1.600 16.629 14.609 1.357 15.000 1.200 12.061 10.000 5.000 0 Source: IWES, TSOs 16

Development of PV Power 10.000 Development of Capacity 45.000 MW 9.000 8.000 7.000 Accummulated Capacity (End of Year) 7.200 8.654 31.154 35.784 37.097 MW 40.000 38.460 35.000 30.000 6.000 5.515 25.000 5.000 4.000 3.806 22.500 4.630 20.000 3.000 15.300 15.000 2.000 1.000 0 9.785 1.313 1.363 5.979 2008 2009 2010 2011 2012 2013 2014 2015 10.000 5.000 0 Source: BNetzA, TSOs 17

90.000 MW 80.000 RES generation D Installed capacity Average RES generation D RES Installed Capacity and Production since 2011 70.000 PDE 60.000 max. EE: 47.634 MW Wind: 34.637 MW PV: 12.609 MW ca. 62% (30.03.2015; 15:00) 50.000 40.000 30.000 20.000 10.000 0 min. EE: 118 MW Wind: 118 MW PV: 0 MW ca. 0,2% (19.11.2014; 23:00) Source : Amprion GmbH h-values 1 Hallo 18

Market 19

Price development for industry consumers Average price for electricity for industry consumers [cent/kwh] (incl. electricity tax) Yearly consumption 160 20,000 MWh generation, transport, distribution CHP-surcharge sheddable loads contribution *since 2010: implementation AusgleichMechV concession levy 19 grid fee contribution electricity tax EEG contribution Offshore contribution Source: BDEW 20

Price development for households Average price for electricity for households [cent/kwh] Yearly consumption about 3,500 kwh supply, grid fee, distribution grid fee incl. Measurement, accounting, monitoring network concession levy CHP-surcharge offshore contribution supply, distribution value-added tax EEG contribution 19 grid fee contribution sheddable loads contribution electricity tax *since 2010: implementation AusgleichMechV **offshore contribution negative in supplementary entry Source: BDEW 21

80.000 70.000 MW 60.000 50.000 Development Price Power Exchange and RES RES generation Price Power Exchange Trend RES generation Trend Price Power Exchange 250 200 /MWh 150 100 50 40.000 0 30.000 20.000 10.000 0-50 -100-150 -200-250 Source: Amprion GmbH 22

German EEG concept Electricity Energy Market Power Exchange Costs / Proceeds marketing Marketing through control area TSO Horizontal balancing adjustment Control area TSO EEG-Account EEG-Account EEG-Account EEG-Account Proceeds from direct marketing Energy supply Federal and financial funding less network charges EEG apportionment RES Energy supply Händler Händler Federal and financial funding grouted under EEG Connection and compensation obligated SO Vertical balancing adjustment EEG apportionment to own consumption Final consumer with own power production Upon application: EEG apportionment costreduction to energy price Privileged final consumer Händler Händler Supplier EEG apportionment nationwided to energy price Final consumer 23

GERMANY Power balance 2015 consumption 600,00 TWh generation 651,8 TWh difference ~ 52 TWh Source: BMWI 24

Energy exchange Commercial flows Physical flows DK SE DK SE 2,08 3,07 1,94 2,08 3,07 1,94 2,11 2,11 BE NL 0,12 16,29 0,17 Germany Export 72,21 Import 23,76 0,76 1,36 0,12 PL 2,70 Export D Import D BE NL 0,34 23,96 0,17 Germany Export 79,12 Import 32,16 0,76 6,27 10,66 PL 0,02 FR LU 2,25 11,73 7,80 31,87 5,00 CZ FR LU 12,11 1,36 16,06 17,77 6,10 CZ CH 2,99 3,61 AT CH 3,02 3,48 AT Values in TWh, Jan 2015 Dec 2015, Source Amprion 25

Market Coupling General principle Capacity nomination Calculation & Distribution CZCs Closing of Order books Publication of Market results Deadline schedules 08:15 10:30 12:00 12:55 14:30 08:15: Latest time for market participants to nominate Day-Ahead Use acquired rights or capacity given to Market Coupling - Use-it-or-Sell-it 08:15: Nominations are summed up and sum is send to Common System Common System calculates with help of nominations the CZCs 10:30: Common System sends the collected CZCs to the exchange system 12:00: Order books of power exchange close 12:55: Final market results are send to all market participants 14:30: Deadline for nomination of schedules CZC: cross zonal capacity 26

Price Coupling of Regions (PCR) in Europe WHAT is PCR? Price Coupling of Regions (PCR) is the initiative of seven European Power Exchanges to harmonise the European electricity markets HOW is this done? By developing a single price coupling algorithm to be used to calculate electricity prices across Europe Source: EpexSpot 27