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 www.german-renewable-energy.com
Ownership Structure of the German Energy Agency
Fields of Competence and Activities at dena
Current EU renewable energy targets 20% share of renewable energies in the total energy consumption in the EU by 2020 10% share for biofuels in petrol and diesel by 2020 20% reduction of greenhouse gases by 2020 (1990) 20% progression in energy efficiency by 2020
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
German Targets for Renewable Energy 91,4 TWh 2008: 237,7 TWh 108,7 TWh 37,7 TWh 994,9 PJ Source, BMU 2009
Development of bioenergy in final energy consumption Long-term Potential 8,2% 9,8% 25% Source, BMU 2009
Germany - Legal Framework for RE Power Production I Renewable Energy Sources Act (EEG) Further development of the Power Feed-In Law StrEG of 1991 2000 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!
Feed-in tariffs under the EEG for 2009 (excluding bonuses). Duration (yrs) Hydropower (< 5MW) 20 (15> 5MW) 2009 -Cent/kWh Degression 3.50-12.67 0% (1.0% >5MW) Biomass 20 7.79-11.67 1.0% Sewage and landfill gas, biogenic share of waste 20 4.16-9.00 1.5% Geothermal energy 20 10.50-20.00 1.0% Wind energy (onshore) 20 5.02 9.20 1.0% Wind energy (offshore) 20 3.50-13.00 5.0% (as of 2015) Photovoltaics 20 31.94 43.01 8-10% (9% as of 2011)
Bonus regulations under the EEG for biomass, 2009 Technology bonus Gas reprocessing 1,0 2,0 -Cent/kWh (300 700 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)
Break Down of Electricity Costs for Private Households 25 Average household with 3.500 kwh/year: 3,10/month (2008) 20 18,0 18,6 19,4 20,7 15 14,3 16,1 Turnover tax Electricity tax Cent/ kwh 10 Concession levy EEG CHP Act Generation, transportation, distribution 5 0 2000 2002 2004 2005 2006 2007 Source: BMU 2007
Structure of RE Power Generation, 2008 Total: 91.4 TWh Source: BMU April 2009
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
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. > 175.000 buildings per year, thereof 150.000 residential, and 25.000 non-residential houses Increased share of RE in heat production by 2,8 4,7% by 2020 Facilitation of heating grid expansion
Legal Framework for RE Heat Production II The Market Incentive Program (MAP) Since 1999 support of RE heating systems Budget 2009-2012 (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)
Structure of RE Heat Supply, 2008 Total: 108.7 TWh Source: BMU April 2009
Development of biofuel supply 1991-2008 Source: BMU April 2009
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. 2006 (see table for pure biodiesel) (Annually) increase of mandatory blending in conventional fuels Quota in 09 at 5,25%, from 2010-2014 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. 06 0 38,04 9,00 2007 4,40 39,94 9,03 2008 4,40 33,64 15,03 2009 6,25 27,34 21,58 2010 6,75 21,04 27,56 2011 7,00 14,74 33,43 2012 7,25 2,14 45,07 2013 7,50 2,14 45,08 2014 7,75 2,14 45,08 2015 8,00 2,14 45,08
CO 2 avoidance via the use of renewable energies, 2008 bio energy in total: 57.2 million t (51%) Source: BMU April 2009
Total turnover from renewable energies, 2008 Total: 28.7 bill. EUR Source: BMU April 2009
Jobs in the German RE sector, 2004-2008 Source: BMU April 2009
Renewables Made in Germany 3 catalogues and CD-Rom (edition of 20.000) Technology Exhibition Imagefilm Website: www.renewables-made-ingermany.com Online-Forum b2b: www.renewablesforum.com Newsletter
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
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 2009 www.biogaspartner.com
Energy Thank you. Deutsche Energie-Agentur GmbH (dena) German Energy Agency Stephanie Nsom Chausseestr. 128a 10115 Berlin Germany Email: nsom@dena.de Tel: +49 (0)30 72 61 65-782 www.dena.de