16.presentation-freier bioenergy in Germany final

Dr. Karin FreierDr. Karin Freier

Head of Division „Solar energy, Biomass, Geothermal energy; Market incentive programmes for renewableenergies“

German Federal Environment Ministry

DGIHKThessaloniki, 11/12.05.06

BioenergyBioenergy in Germanyin Germany–– Experiences and Perspectives Experiences and Perspectives ––

Dr. Karin Freier - 1 - Thessaloniki, 11/12.05.06

Quellen: nach Arbeitsgruppe Erneuerbare-Energien-Statistik (AGEE-Stat); Zentrum für Sonnenenergie- und Wasserstoff-Forschung Baden-Württemberg (ZSW); Arbeitsgemeinschaft Energiebilanzen (AGEB); Statistisches Bundesamt (StBA)

** einschließlich biogener Anteil des Abfalls

* vorläufige Angaben, teilweise geschätzt, Stand Februar 2006

1,93,45,25,49,410,2Gesamt

0,110,11< 0,1< 0,1Geothermie

0,20,2--Solarthermie

--0,10,2Fotovoltaik

1,93,44,95,11,62,2Biomasse**

--4,24,3Windenergie

--3,53,5Wasserkraft

[%]

2004*2005*2004*2005*2004*2005*

KraftstoffWärmeStrom

Anteil am Endenergieverbrauch 2005

Introduction

Climate change


– Climatic turbulence on an unprecedented scale,

– oil price shock and– conflict over natural gas supplies:

the future energy mix has to be different to the current one!

Climate protection, Climate protection, affordability and supply affordability and supply security!security!

Climate change


A future-orientated energy supply must consistently pursue three strategies:

–– Energy savingEnergy saving–– Energy efficiencyEnergy efficiency–– Renewable energiesRenewable energies

Achievements & Goals


feste Biomasse46,2%

Windenergie14,6%

Wasserkraft11,9%

Solarthermie1,6%

Photovoltaik0,6% Geothermie

0,9%

Biodiesel9,7%

flüssige Biomasse stationär

0,1%

Pflanzenöl0,9%

Bioethanol0,9%

gasförmige Biomasse

8,1%

biogener Anteil des Abfalls

4,6%

Mineralöle36,0%

Braunkohle11,2%

Steinkohle12,9%

Kernenergie12,5%

Erneuerbare4,6%

Erdgas22,7%

Sonstige0,1%

Quelle: AGEEStat, Febr. 2006


German targets

-- Share of RES from primary energy supply:Share of RES from primary energy supply:2010: at least 4.2 %2020: at least 10 % (new!)

-- Share of RES from bioShare of RES from bio--fuelsfuels::2010: at least 5.75 %

-- Share of RES from electricityShare of RES from electricity::2010: 12.5 %2020: 20.0 %

- 2050: at least 50 % of total energy consumptiontotal energy consumption- 2020: doubling energy efficiencyenergy efficiency compared to 1990


Taking stock

Contribution of renewable energy sourcesto electricity generation 1990 - 2005

0

10

20

30

40

50

60

70

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003* 2004* 2005*

[TW

h]

Hydropower Wind energy Biomass Photovoltaics


RES in electricity, heating & bio-fuels

market 2005

0 5 10 15 20 25 30

BioethanolPflanzenölBiodiesel

GeothermieSolarthermie

Biomasse übrigeBiomasse Haushalte

Geothermieflüssige Biomasse

PhotovoltaikKlärgas

Deponiegasbiogener Anteil Abfall

Biogasfeste Biomasse

WasserkraftWindenergie

Economic aspects


- Security of energy supply and reduction of energy imports

- Regional positive effects (infrastructure, small industry, additional income)

- Innovative technology and knowledge created- Export opportunities- 170,000 jobs (2005), 2020: 300,000!- 16 billion euro turnover (2005)- 83 Mio. tonnes CO2 avoided by RES

Outlook 2020


0

20

40

60

80

100

120

140

160

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Stro

mer

zeug

ung

[TW

h/a]

Wind Land28%

Wasser EEG3%

Strom außerhalb EEG

17% Geothermie2%

Solarenergie4%

Biomasse17%

Wind offshore 26%

Struktur der Stromerzeugung aus erneuerbaren Energien im Jahr 2020

19

39

56

85

151

Wasser EEG Wind Land Wind offshore Biomasse

Solarenergie Geothermie Strom außerhalb EEG Variante „Externe Kosten“

EEG Strommenge„Börsenpreis“

Outlook: Investment RES-Electricity until

2020


0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Jähr

l. In

vest

ition

en [M

io. €

/ Ja

hr]

Wasser Wind Fotovoltaik Biomasse Erdwärme EE-Import

Two-pronged strategy


Supporting accelerated market introduction fornew technologies

ANDAND

accelerate innovationthrough R+D!


Instruments

- Renewable Energy Sources Act- Market incentive programme- Tax reduction on bio-fuels

respectively minimum blending quota

- Research and development


R+D for RES

6850

86 83 88 93 98

0

20

40

60

80

100

120

2003 2004 2005 2006 2007 2008 2009


Renewable Energy Sources Act

ThreeThree obligationsobligations forfor gridgrid operatorsoperators::- obliged to connect to their grids installations generating

electricity from renewable energies- first purchase all of the electricity produced from these

installations as a priority- pay fixed rates for the electricity.

The fees are fixed for a period of 20 years. This bringsinvestment security for the renewable energy industry.

Tariffs vary by energy sources (wind power, biomass, solar power, geothermal power, hydropower), locations, and installation rate.


2.06.19 - 9.10Wind energy (offshore)

2.05.28 - 8.36Wind energy (onshore)

5.0/6.540.60 - 56.80Solar energy

1.07.16 - 15.00Geothermal energy (<20MW)

1.53.78 - 17.16Biomass (<20MW)

0.0/1.03.62 - 9.67Hydropower

Degression (%/a)

2006 (€Cent/kWh)

Tariffs for 2006


Market incentive programme

- Promotion of 485,000 investment measures (BAFA: 483.000, KfW 2.566)

BAFA: grants: 590 million €KfW: loans: 741 million €

The promotion totalling to 665 million € led to an The promotion totalling to 665 million € led to an investment volume of more than 5 billion €!investment volume of more than 5 billion €!


Grants for investments (BAFA)

- 483,000 measures, thereof:421,000 solar collectors60,000 small biomass plants

- Investment volume: 4.2 billion €, thereof:3.2 billion € for solar collectors1 billion € for small biomass plants


Interest-subsidised credits (KfW)

- Interest-subsidised credits with/ without partial abatement of debts (KfW)

- 2.567 measures (loans: 741 million €)

Biogas: 510 million € (1.217 measures)Biomass: 129 million € (1.035 measures)Biomass-CHP: 36 million € (46 measures)Hydropower: 45 million € (252 measures)Geothermal: 18 million € (8 measures)


EU bio-fuels directive

0,3% 0,5%0,8% 1,2%1,9%

3,4%

5,75%

0,0%1,0%2,0%3,0%4,0%5,0%6,0%7,0%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010A

ntei

l am

Kra

ftsto

ffver

brau

ch


Development of bio-energy in Germany

8501043

13601608

17602010

2690

247

665

160111

7849

190

0

500

1000

1500

2000

2500

3000

Dez 19

99

Dez 20

00

Dez 20

01

Dez 20

02

Dez 20

03

Dez 20

04

Dez 20

05

Anl

agen

anza

hl

0

100

200

300

400

500

600

700

Anl

agen

leis

tung

in M

WelAnlagenanzahl gesamt

Anlagenleistung gesamt


Structure of electricity generationfrom renewable energy sources 2005

Total: 62.1 TWh

Biogenic solid fuels7.6 %

Photovoltaics1.6 %

Biogenic liquid fuels0.2 %

Biogenic share of waste3.3 %

Biogas5.1 %

Sewage gas1.4 %

Landfill gas3.5 %

Geothermal energy 0.0003 %

Hydropower34.6 %

Wind energy42.6 %

Source: working group on renewable energies stat ist ics (AGEE-Stat), Status February 2006

Electricity generation


Structure of heat supply fromrenewable energy sources 2005

Total: 81.1 TWh

Biogenicshare of w aste

4.4 %

Solar thermal energy3.7 %

Biogenic solid fuels, industry20.7 %

Deep geothermal energy0.1 %

Near-surface geothermal energy

1.8 %

Biogenic liquid and gaseous fuels

0.3 %

Source: working group on renewable energies stat ist ics (AGEE-Stat), Status February 2006

Heat generation


acc. to physical energy content

method

acc. to substitution

method

acc. to physical energy content

method

acc. to substitution

method[GWh] [PJ] [PJ] [million tonnes]

Biodiesel 17,567 2.88 0.4 0.4 6.2

Pure vegetable oil 1,567 0.26 0.04 0.04 0.4

Bioethanol 1,563 0.26 0.04 0.04 0.2

total 20,967 3.4 0.5 0.5 6.9

163,930 651.9 947.5 6.4 4.6 6.6 82.9

Contribution of renewable energy sources to energy supply 2005

Primary energy equivalentCO2 emissions

avoided Final energy

Share in total primary energy consumption

5.6

5.6

Share in total final energy consumption

Total

Fuel

s

Shar

e in

fu

el

con

sum

ptio

n

for

road

tra

ffic

74.5

[%][%]

63.2

Sources: Centre for Solar Energy and Hydrogen Research (ZSW); Working Group on Energy Balances (AGEB);Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU); Federal Ministry of Economics and Technology (BMWi); Federal Ministry of Food, Agriculture and Consumer Protection (BMELV); Federal Ministry of Finance (BMF); Federal Statistical Office (StBA); Agency of Renewable Resources (FNR); German Electricity Association (VDEW);Association of German network operators (VDN); German solar industry association (BSW); Institute for Energy and Environment (IE); German Wind Energy Association (BWE);For explanations please refer to BMU brochure "Renewable energy sources in figures - national and international development", Internet update December 2005

Status: Provisional figures, partly estimated, status February 2006

Bio-fuels


Jobs in bio-energy

10.000

1.600

700

4.700

8.600

13.000

2.400

6.000

6.700

8.400

29.000

53.20015.600

25.400

0 10.000 20.000 30.000 40.000 50.000 60.000

Dienstleistungen

W ärmepumpen

Photov oltaik

Solarthermie

W asserkraft

Biomasse

W indenergie

1998 2002


Total turnover

Total turnover from renewable energy sources 2005 (investments and operation)

approx. € 16 billion

Hydropower€ 1,170 m; 7 %Wind energy

€ 4,500 m; 28 %

Geothermalenergy

€ 280 m; 2 %

Solar energy€ 4,250 m; 26 %

Biomass€ 5,850 m; 37 %

Source: F. Staiß: Jahrbuch Erneuerbare Energien, ed.: Stiftung Energieforschung Baden-Württemberg


Investments in new plants

Investments in new plants for the use ofrenewable energy sources 2005

approx. € 8.7 billion

Wind energy;€ 2,100 m; 24 %

Solar thermal energy;€ 750 m; 9 %

Photovoltaics€ 3,000 m; 34 %

Geothermal energy;€ 250 m; 3 %

Biomass electricity; € 1,300 m; 15 %

Biomass heat € 1,550 m; 14 %

Hydropow er€ 70 m; 1 %



Operation of plants

Turnover from the operation of plants for the use of renewable energy sources 2005

approx. € 7.3 billion

Biofuels€ 1,700 m; 23 %

Biomass heat€ 500 m; 7 %

Biomass electricity € 1,100 m; 15 %

Photovoltaics € 500 m; 7 %

Wind energy€ 2,400 m; 33 %

Hydropower€ 1,100 m; 15 %

Geothemal energy€ 30 m; 0,4 %



Biomass Action Plan

- Biomass Action Plan implemented on 7 December 2005- Implementation of BAP-measures: National Biomass

Action Plans

Aims:- Doubling the use of biomass energy in Europe within the next years- Providing a basis for further increase of the use of biomass energy in

2020

Communities’ targets till 2010:- A 12 % overall share of renewable energy of primary energy

consumption- A 21 % share of renewable energy in electricity generation- A 5,75 % market share for bio-fuels


EU-Scenario

8014969TOTAL

18191Transport

277548Heat

355520Electricity

DifferenceFuture (2010)

Current (2003)

mtoe


Outlook 2050

1

Bioenergy in Germany – Experiences and perspectives DGIHK, Thessaloniki, 11 – 12 May 2006

Dr. Karin Freier

Head of Division “Solar energy, Biomass, Geothermal energy; Market incentive programmes for renewable energies”

German Federal Environment Ministry

Slide 1: Introduction

In order to reach the German government’s goals of covered at least 20 % of electricity and 10 % of primary energy through renewable energies by 2020, the greater use of bio-energy in future – as part of an expedient mix of all renewable energies – is a key prerequisite.

Therefore, according to BMU plans, bioenergy will contribute the biggest share after wind energy (especially offshore) to meeting this goal.

However, biomass is already making by far the most significant contribution of renewable energy sources to energy supply in 2005:

• 2.2 % from biogenic heat,

• 5.1 % from electricity from biomass and

• 3.4 % from biofuels.

Furthermore biomass is an energy source with a great future that has massive potential for development. In the medium term it has the greatest potential for the further expansion of renewable energies. Biomass should accordingly be the next sector after wind energy to be exploited on a large scale as it can make a significant contribution to reaching expansion goals for renewable energies.

Slides 2, 3: Climate change

Climate protection and a transformation in the energy system are closely interlinked.

Climatic turbulence on an unprecedented scale, the oil price shock and conflict over natural gas supplies: not only the events in recent months have shown us that the future energy mix has to be different to the current one.

There is increasing realisation globally that the current energy system based to a large extent on the wasteful and inefficient use of fossil energies cannot guarantee either climate protection or affordability and supply security.

2

The global challenge of climate protection calls for wide-ranging innovations in energy policy. These are aimed at achieve a future-oriented energy supply. To this end we must consistently pursue three strategies:

• Energy saving

• Increasing energy productivity

• Increasing the use of renewables.

We need to decouple energy and resource consumption from economic growth.

In order to stop this growth in energy consumption, with all its negative consequences for climate protection, we need political strategies for a future-oriented energy supply. Increasing the use of RE is a key part of this.

Slides 4, 5: Achievements and Goals

Present energy mix:

• Lignite and hard coal 24 %

• Mineral oil 36 %

• Nuclear 13 %

• RE 4.6 %.

In our expansion of renewable energies, Germany has set itself ambitious targets:

• Increase the share of renewable energies in electricity consumption to at least 12.5 % by 2010; this is twice the share of 2000

• In 2020 we aim for a share of at least 20 %.

• Increase the share of RES from bio-fuels to at least 5.75 % till 2010

• We want to raise the share of renewables in total energy consumption to 4.2 % by 2010, and to 10 % by 2020.

• In 2050 we want to cover half our total energy consumption from renewable energies.

Renewable energies make us independent of oil imports, thus contributing to supply security and conserving finite fossil resources.

The risks of oil dependency are clearly demonstrated by the rapid increase and heavy fluctuations in oil prices since the beginning of 2004: from 25 dollars to more than 70 dollars a barrel.

3

To achieve this we must ensure that renewables can compete sooner with conventional energies. For in the long-term only economies which have switched at least half their energy supply to renewables will be competitive.

At the same time we need to decouple energy and resource consumption from economic growth. Renewable energies are environmentally friendly, but the most environmentally friendly kilowatt-hour is one that is not consumed. The German government is therefore also pursuing ambitious efficiency targets: Our efficiency strategy aims at doubling our energy productivity by 2020 compared to 1990.

Biomass plays a significant role in the German government’s expansion strategy since it is to have a proportionately higher share in energy provision from renewable energies. Of course it is not only electricity production that is the focus here, heat generation and fuel supply from biomass are also important.

What have we achieved so far?

Slides 6, 7: Taking stock

Germany has made a successful start on the road towards a renewable energy supply!

• Renewables are developing strongly in the electricity sector: their share rose from 4.7 % in 1998 to 10.2 % in 2005. This means that already every 10th kilowatt hour is generated from renewable energies. Germany is therefore within reach of the 12.5 % target being striven for by 2010.

• In the same period, the share of renewables on the heating market rose from approximately 3.5 % to its current 5.4 %.

• The share of renewables in primary energy consumption rose to 4.6 %.

Already in 2005 Germany reached a share of 3.6 % of bio-fuels. This is already above the intermediate goal of the EU bio-fuels directive of 2 % in 2005.

The expansion of renewables also plays an important role in climate protection: in 2005 they contributed to a CO2 reduction of approximately 83 million tonnes.

Slides 8: Economic aspects

But renewables are also successful from an economic point of view:

• At present around 170,000 people work in the field of renewable energies. The wind and biomass branches have the highest employment effects.

4

• Prospects up to 2020: number of jobs will double to a good 300,000 (future gross employment).

• Last year the branch generated a total turnover of € 16 billion (a growth of 30 % compared to 2004). Here, wind power sets the pace, with € 4.5 billion.

Renewable energies are an engine for innovation. Research and development aims at a steady increase in plant efficiency and reduction of costs.

Slide 9, 10: Outlook 2020

The expected expansion of renewable energies leads to an increase of electricity generated from renewable energies from 55.8 TWh/a at present (2004) to 86 TWh/a in 2010 and 151 TWh/a in 2020. This corresponds to a share of approximately 25 % of gross electricity consumption.

The red lines indicate that within the next decade an expanding share of electricity generated from renewable energies will presumably not depend anymore on the feed-in payments laid down in the EEG. Reason: According to the annual degression of the feed-in payments and the rising value of produced electricity at the same time an increasing share of electricity produced from renewable energies reach economic efficiency.

Slide 11: Political framework: Two-pronged strategy

At present renewable energy technologies are not yet competitive, they need political framework conditions.

To close the gape in economic viability between renewables and conventional energies more quickly, we are relying on rapid scale up and the resulting cost reduction.

The point when renewables become competitive will also essentially depend on how electricity prices, or the prices of oil, gas and coal develop.

In order to continue this course we need a two-pronged strategy:

• Support for market introduction, in order to bring technologies onto the market more quickly.

• Support for research and development, in order to accelerate innovation processes.

But it is not only attractive framework conditions that are crucial for a corresponding market development. To achieve this goal it is also essential to increase public

5

awareness of these technologies and at the same time to awaken interest in and acceptance for these technologies for environmentally friendly electricity and heat production.

Slides 12, 13: Instruments

• Renewable Energy Source Act

• Market incentive programme

• Tax reduction on bio-fuels respectively minimum blending quota

• Research and development

We are on the right path to reaching the targets. With our Renewable Energy Sources Act we have established a successful market introduction instrument for renewable energies in Germany and developed this instrument over several years.

The Market incentive programme, which is also to be continued in its existing scope by the new German government, is particularly crucial for the expansion of renewable energies for heat provision.

The instruments for the market introduction of renewable energies are now to be further enhanced with the elaboration of a Heating Act.

To reach the goal of increasing the bio-fuels percentage the coalition partners agreed to introduce a minimum blending quota starting in January 2007.

A further positive development is thus mapped out for bio-energy.

Long-term cost reduction can only be achieved with intensive research and development activities in addition to market development. Research and development thus have a central role in the increased use of renewable energies.

In 2006 the BMU's budget for research and development in RE was approximately € 83 million. The budget will raise to 98 Mio. € until 2009.

Slides 14, 15: Renewable Energy Sources Act

The key instrument for the expansion of renewables in Germany is the Renewable Energy Sources Act.

With fixed payment rates over 20 years, it creates framework conditions which mean long-term investment security.

6

Amendment to this Act in 2004 further improved the conditions for renewables: the photovoltaic sector is booming, biomass is being massively expanded, the preparations for offshore wind-parks are pressing ahead.

The Renewable Energy Sources Act contains three obligations for grid operators:

• They must connect plants for generating electricity from renewables to the general electricity supply grids.

• They must give priority to the purchase of this electricity.

• They must pay fixed fees to the electricity generator.

The rates are laid down in such a way as to allow installations to be efficiently managed and viably operated.

The fee rates are differentiated according to branch (wind energy, hydro, biomass, geothermal energy, solar energy, landfill gas, sewer gas and mine gas), plant capacity and geographic location (wind power only).

The annual degression of the feed-in payments laid down in the EEG creates incentives for industry and research to improve the quality of their products and to lower prices. As with all new technologies, renewables have to go through a learning curve. Learning curves show what the cost reduction potential of a technology is if production volume is doubled. This is also an indicator for a technology’s innovative power.

The actual rate of technological progress and hence competitiveness will vary for each renewable energy type. It will be considerably sooner for wind power than for photovoltaics.

In this context, the Renewable Energy Sources Act has proven in an international comparison to be an extremely effective instrument for increasing electricity production from renewable energies. The relatively new renewable energy markets are supported across the entire spectrum, potential for innovation and cost degression is fully exploited.

Germany plans to continue adapting the Renewable Energy Sources Act to market and technology developments and will do this on the basis of the progress report on the Act due in 2007.

Slides 16-18: Market incentive programme

• Promotion of 485,000 investment measures (BAFA/ Federal Office of Economics and Export Control: 483.000 and KfW 2.566)

• BAFA: grants: 590 million €

7

• KfW: loans: 741 million €

The promotion totalling to 665 million € led to an investment volume of more than 5 billion €!

Grants for investments (BAFA):

• 483,000 measures, thereof:

- 421,000 solar collectors

- 60,000 small biomass plants

• Investment volume: 4.2 billion €, thereof:

- 3.2 billion € for solar collectors

- 1 billion € for small biomass plants

Interest-subsidised credits with/ without partial abatement of debts (KfW):

• 2.567 measures (loans: 741 million €)

- Biogas: 510 million € (1.217 measures)

- Biomass: 129 million € (1.035 measures)

- Biomass-CHP: 36 million € (46 measures)

- Hydropower: 45 million € (252 measures)

- Geothermal: 18 million € (8 measures)

Slide 19: Tax reduction on bio-fuels/ Minimum blending quota

Within the plans to expand the use of renewable energies the German government agreed to increase the percentage of bio-fuels to 6 % (in terms of energy content) in the year 2010.

Already in 2005 Germany reached a share of 3.6 % bio fuels. This is already above the intermediate goal of the EU bio-fuels directive of 2 % in 2005.

To reach the goal of increasing the bio-fuels percentage the coalition partners agreed to introduce a minimum blending quota starting in January 2007. Therefore the existing tax reduction on bio-fuels will be replaced.

The EU is planning to increase the minimum blending quota to 10 %.

Slide 20: Development of bioenergy in Germany

The entry into force of the amended Renewable Energy Sources Act on 1st August 2004 facilitated the tapping of new and major potential for biomass and the market

8

launch of new innovative technologies for electricity produced from biomass. This was also necessary because the potential of waste wood and biowastes previously used for electricity production had already been exhausted to a large degree.

The so-called “Nawaro bonus” (bonus for the energetic use of regenerative raw materials), an increased fee payment for electricity from biomass exclusively produced from regenerative raw materials from agriculture and forestry, closed a gap in the Renewable Energy Sources Act and triggered a momentum for the use of biogenic energy forms similar to the momentum in the wind energy sector 10 years ago.

The expansion of electricity produced from biomass picked up pace soon after the entry into force of the amended Renewable Energy Sources Act. The biomass sector, in particular the biogas sector, is booming. Interest in biogas plants has increased rapidly as “biogas production” is now an interesting source of income for many farmers.

Graphik: Biogasanlagen in Dt.: Entwicklung des Anlagenbestands, Quelle: IE, Feb. 2006

Slide 21: Electricity generation from biomass

Electricity generation from solid, gaseous and liquid biomass is increasing steadily:

Solid biomass (wood):

• Approx. 130 power plants or thermal power plants exclusively using solid biomass were in operation by the end of 2005. Waste wood and logging residues are used mainly, the installed electric capacity of these installations was approximately 790 MW.

• Since 2000, the number of installations has more than doubled, the installed capacity more than tripled.

Biogas:

• From late 1999 to late 2005 the number of biogas installations more than tripled to approx. 2,700. There is a trend towards larger installations so that the installed electric capacity increased even more than tenfold within the same period.

• In 2005 alone more than 600 installations went into operation for the first time, most of them in the agricultural sector (“Nawaro bonus” is effective).

Vegetable oil:

• Currently, approx. 700 block-type thermal power stations using vegetable oil are in operation. In August 2003 there were only about 130.

9

• Economic efficiency crucially depends on whether the installations are eligible for the “Nawaro bonus”.

• Half of the installations are very small (electric capacity lower than 10 kW).

• The overall installed electric capacity adds up to approx. 60 MW and is mainly generated by a few (about 12!) very large installations with an electric capacity on the MW-scale.

• The growing demand for rape seed for biodiesel production led to an increase in the prices for rape oil in 2005. Therefore especially in larger commercial installations an effort is made to use less expensive vegetable oil (palm oil and soybean oil).

Slide 22: Heat generation from biomass

Almost the entire heat supply from renewable energy sources (5.4 %) comes from biomass (about 94 %):

• Focus on small-scale wood combustion – approx. 8 million installations

• Support through Market incentive programme only available for installations with comparatively low emissions and high energy efficiency

• Market for wood-chip heating systems shows an especially dynamic development

Slide 23: Bio-fuels

Dynamic development continued in 2005:

• Sale of bio-fuels rose from 1.1 million tonnes in 2004 to a good 2 million tonnes in 2005: reasons: development of prices for mineral oil and the possibility of blending (exempt from mineral oil tax)

• Biodiesel still dominates the market with 1.7 million tonnes. Other important biofuels are bioethanol (0.21 million tonnes) and vegetable oil (0.15 million tonnes)

• To date 1,900 service stations offer biodiesel

Slides 24-27: Economic factor bioenergy

• In 2004 approx. 157,000 jobs in the renewable energies sector. With 57,000 jobs in bio-energy, this sector offers the largest number of jobs among the renewable energies after the wind energy sector (64,000 jobs)

• In 2005, bio-energy accounted for 37 % (€ 16 billion) of total turnover in the renewable energies sector

10

Investments in new installations for the energetic use of biomass 2005:

• electricity generation installations: € 1.3 billion

• heat generation installations: € 1.25 billion

Turnover from the operation of bioenergy installations 2005:

• Electricity: € 1.1 billion

• Heat: € 500 million

• Bio-fuels: € 1.7 billion

Slides 28, 29: Biomass Action Plan

The European Union also clearly recognizes the prominent role of biomass in the energy mix of the future. In the Biomass Action Plan presented on 7 December 2005 the EU Commission proposed measures, the implementation of which can lead to an increase in the energetic use of biomass from 69 million tonnes of crude oil equivalent in 2003 to approx. 150 million tonnes of crude oil equivalent in 2010.

The intention of this action plan is the proposal of measures to accelerate the deployment of bio-energy in Europe to

• Cut its dependence on fossil fuels,

• Cut greenhouse gas emissions,

• Stimulate economic activity in rural areas.

In particular, the biomass action plan aims at:

• Doubling the use of biomass energy in Europe within the next years,

• Providing a basis for further increase of the use of biomass energy in 2020.

The following scenario serves as the basis for the measures set out in the action plan. It is compatible with the achievement of the Communities’ targets till 2010:

• A 12 % overall share of renewable energy of primary energy consumption,

• A 21 % share of renewable energy in electricity generation and

• A 5,75 % market share for bio-fuels.

Mtoe (million tonnes of oil equivalent)

Current (2003) Future (2010) Difference

11

Electricity 20 55 35

Heat 48 75 27

Transport 1 19 18

TOTAL 69 149 80

When it comes to the EU's potential with regard to biomass, the European Environment Agency estimates that it will be possible to more than double the current 4 % share of biomass in the EU energy supply. This will be done in accordance with good agricultural practice, by keeping up a sustainable biomass production and with no appreciable impacts on the national food production.

For further information please contact: http://europa.eu.int/comm/energy/res/biomass_action_plan/green_electricity_en.htm

Slide 30: Outlook 2050

For poor countries it is even more important than it is for Germany or the EU to be free from the expensive dependence from fossil fuels. For these countries as well, the use of renewable energy sources and especially the sustainable and efficient use of biomass is a decisive step towards independence from energy imports and hence towards the eradication of poverty and underdevelopment.

Renewable energies are booming worldwide. Since in Germany the signs of the times were read early on, German technology for the use of renewables holds a leading position in many sectors. German companies are increasingly successful on the global market for renewable energies. There is also a lot of interest in biogas technology worldwide.

It is a characteristic of the renewable energy sources sector that most participants are medium-sized companies. For these companies to be able to make use of the opportunities the global market offers, the German Government will continue to intensify its Renewable Energy Export Initiative and continue with its international activities for the increased use of renewable energies.

16.presentation-freier bioenergy in Germany final

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