Energy

Dr. Rudolf Rauch Principal Advisor, Renewables

Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ)

GIRED, Jakarta, 24 October 2011

How feed in tariffs can boost bio energy development in Germany & Indonesia

Development of the German PV Market(total 17200 MWp, 860000 systems @ average 20 kWp)

Source: BSW Solar

3 3 3 3 4 7 1 2 10 1 2 42 7 8 118 13 9

6 70

9 5 18 43

1. 271

1 .809

3 .806

7.408

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*

annually installed cumulated installed

Market Data Photovoltaics in Germany 2010*

Newly installed power 7,400 MWp

Total installed power 17,200 MWp

Solar electricity produced 12,000 GWh

No. of all systems installed 860,000

Employees 130,000(Source: BSW -Solar)

* Preliminary figures, rounded, 3/2011

Milestones

1991: First Feed -in Law (FIT with low tariffs)

1991 - 1995: 1,000 roofs program (grants)

1999 - 2003: 100,000 roofs program (loans)

2000: Renewable Energy Sources Act (EEG) (FIT)

2004 +2009: Amendment (revision) of EEG (FIT)

2010: Amendment (revision) of EEG (FIT)

17 GWp in Germany = 120GWp in Indonesia(Indonesia’s land area = 5 x Germany’s, solar irradiation = 50% higher than in Germany)

1991 2010

17 GW

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The „renewables – Made in Germany“ initiative

Commissioned by the Federal Ministry of Economics

and Technology

Implementing agencies in Southeast Asia:

AHK, GIZ, GTAI, dena: close collaboration and joint implementation

Activities: Supporting new business partnerships

Supporting project and market development

Improving framework conditions

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The „renewables – Made in Germany“ initiative

Aim of this Conference:

To exchange experience

To accelerate technology transfer

To create business partnerships

To support Indonesia in tapping its RE

potential

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Renewable Energy in Germany

RE share of total final energy consumption Status Quo: 10.9%

Target for 2020: 18%

Total investment in the construction of RE

installations in 2010: 26.6 Bio Euro

Total economic boost from the construction of

RE installations in 2010: 11.1 Bio Euro

Jobs in the RE in Germany in 2010: 367 400

Source: BMU

Shares of renewable energy sources among total final

energy consumption in Germany 2010

Other fossil energy

resources (e.g. hard

coal, lignite, mineral oil,

natural gas) and nuclear

energy

89.1 %

Hydropower

0.8 %Wind energy

1.5 %

Biomass2)

7.7 %

Other renewables

0.9 %

RES share 2010

10.9 %

Total: 9,060 PJ1)

1) Energy Environment Forecast Analysis (EEFA) GmbH & Co KG; 2) Solid and liquid biomass, biogas, sewage and landfill gas, biogenic share of waste, biogenic fuels;

Source: BMU-KI III 1 based on Working Group on Renewable Energy-Statistics (AGEE-Stat) and the Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW), according to Working

Group on Energy Balances e.V. (AGEB); RES: Renewable Energy Sources; deviations in the totals are due to rounding; 1 PJ = 1015

Joule; as at: July 2011; all figures provisional

Source: BMU

Contribution of renewable energy sources to electricity

supply in Germany

0

20,000

40,000

60,000

80,000

100,000

120,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

[GW

h]

Hydropower Wind energy

Biomass * Photovoltaics

* Solid and liquid biomass, biogas, sewage and landfill gas, biogenic share of waste; electricity from geothermal energy not presented due to negligible quantities produced; 1 GWh = 1 Mill. kWh;

StromEinspG: Act on the Sale of Electricity to the Grid; BauGB: Construction Code; EEG: Renewable Energy Sources Act;

Source: BMU-KI III 1 according to Working Group on Renewable Energy-Statistics (AGEE-Stat); image: BMU / Christoph Edelhoff; as at: July 2011; all figures provisional

StromEinspG:

January 1991 - March 2000

Amendment to BauGB:

November 1997

EEG:

April 2000

EEG:

January 2009

EEG:

August 2004

Source: BMU

Economic boost from the construction of renewable energy

installations in Germany 2010

3,050 Mill. EUR

1,280 Mill. EUR

600 Mill. EUR

370 Mill. EUR

4,870 Mill. EUR

740 Mill. EUR

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Biomass

(electricity & heat)

Biofuels

Wind energy

Photovoltaics

Geothermal

energy

Hydropower

[Mill. EUR]* Only fuels used exclusively to supply heat;

Geothermal energy is not shown in this figure, because of the small turnover by operation (EUR 4.0 million); deviations in the totals are due to rounding;

Source: BMU-KI III 1 according to the Centre for Solar Energy and Hydrogen Research Baden-Wuerttemberg (ZSW); as at: July 2011; all figures provisional

Total: approx. 11.1 Bill. EUR

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The German Bioenergy Sector

6.000 Biogas Power Plants (total 2.279 MW,

avererage capacity 400 kW

220 CHP biomass power plants (total 1200 MW,

average capacity 6 MW)

12 billion Euro turnover/a in the industry

128.000 jobs

65,2 mio t avoided CO2-Emissions (total

avoided emissions through RE: 120 mio t)

Source: Bundesverband Bioenergie e.V.

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Regulatory Framework: The Renewable Energy SourcesAct (EEG)

Purchase obligation for electricity grid operators

Priority integration of RE into the grid

Guaranteed remuneration rates for a 20-year period

Feed-in-tariffs vary according to technology and system

size

Annual degression for the tariff measured by capacity

growth of the respective technology

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Indonesia„s Biomass Energy Potential & how to tap it

Overall potential > 10000 MW

Most economic target: agroindustry with surplus waste

Biggest potential palm oil (600 mills, 4500 MW)

Others: sugar (62 mills), rice, tapioca starch

FIT adds value to waste and increases efficiency Policy & tariff issues

Administrative issues

Technical issues

FFibers 4.6 MW

Shells 2.7 MW

EFB 2.3 MW

Biogas 1MW

Power Potential from POM Residues

10 MW / mill

Example Palm Oil Mills Thailand

0.7 MW

• 25 biogas plants (range 0.5 MW – 4.2 MW)

• 7 biomass power plants (1 MW – 12 MW

Energy

Terima Kasih

rudolf.rauch@giz.de

Thank You

Get the Mega Watts!

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Content

The „renewables – Made in Germany“ initiative

The renewable energy market and the regulatory

framework in Germany

The bioenergy potential in Indonesia

How to tap it

Energy

The initiative„renewables – Made in Germany“

Partners in the “renewables – Made in Germany” initiative

German Chambers of Commerce (AHKs) and the Association of German Chambers of Industry and Commerce (DIHK)

The German Chambers of Commerce represent German business and support German companies operating abroad. The

chambers are responsible for the AHK business trip programme. They organise special events overseas and establish contactswith potential customers and partners in target markets. The local chambers are coordinated by the Association of German

Chambers of Industry and Commerce.

The German Energy Agency (dena)

dena provides industry and export-specific information and advises companies on issues connected with foreign markets. It also

carries out marketing activities for German technologies and companies abroad. The “Solar roofs programme” is part of its remit.

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

GIZ is implementing the Project Development Programme (PDP). PDP organises information events in Germany and abroad. It

is responsible for organising business trips and trips for delegations visiting Germany. Capacity development and policy advisory

services complement the range of services offered.

Germany Trade & Invest (GTAI)

Germany Trade and Invest is responsible for foreign trade, and marketing Germany as a business location. Germany Trade andInvest also provides information about foreign markets.

Energy

Renewable energy in Germany

Source: BMU

Feed-in and payment under

the Electricity Feed Act (StromEinspG) and

the Renewable Energy Sources Act (EEG) in Germany

44.0 51.5 67.0 71.1 75.1 80.738.528.425.018.110.4

3.5

7.96.8

4.83.72.82.31.61.31.0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

[Mil

l. E

UR

]

0

10

20

30

40

50

60

70

80

90

[TW

h/a

]

Feed-in under StromEinspG [TWh/a]

Feed-in under EEG [TWh/a]

Payment of fees [Mill. EUR]

StromEinspG: Act on the Sale of Electricity to the Grid; BauGB: Construction Code; EEG: Renewable Energy Sources Act; 1 TWh = 1 Bill. kWh; Source: BMU-KI III 1 according to Working Group on

Renewable Energy-Statistics (AGEE-Stat); Year 2010: provisional estimate (IfnE); image: BMU / Bernd Müller; as at: July 2011; all figures provisional

StromEinspG:

January 1991 - March 2000

Amendment to BauGB:

November 1997

EEG:

April 2000

EEG:

January 2009

EEG:

August 2004

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Development of installed biogas plants and capacity in Germany

139 159 186274

370450

617

850

1.050

1.300

1.6001.750

2.5002.680

3.500

3.711

4.100

4.500

1.100

1.271

1.435

650

390333

256

182

6550

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Num

ber

of

pla

nts

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

Insta

lled c

apacity [

MW

]

Biogas plants

Capacity

Source: German Biogas Association

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Development biomass CHP and structure 2008

0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007 2008

nu

mb

er

of

pla

nts

0

200

400

600

800

1000

1200

1400

insta

lled

cap

acit

y [

MW

]

biomass plants Capacity

Source: Deutsches BiomasseForschungsZentrum

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The German Bioenergy Industry

Structure of electricity supply from biomass

in Germany 2010

Biogenic solid fuels:

35.4 %

Biogenic liquid fuels:

5.4 %

Biogas:

39.9 %

Sewage gas:

3.3 %

Landfill gas:

2.0 %

Biogenic share of

waste:

14.0 %

Total: 33.3 TWh

Source: BMU-KI III 1 according to Working Group on Renewable Energy-Statistics (AGEE-Stat); 1 TWh = 1 Bill. kWh;

deviations in the totals are due to rounding; as at: July 2011; all figures provisional

Source: BMU

Source: BSW Solar

Year of commissioning < 30 kWp (Ct/kWh)

> 30 kWp (Ct/kWh)

> 100 kWp(Ct/kWh)

> 1.000 kWp(Ct/kWh)

Jan 1, 2011 28.74 27.33 25.86 21.56

Tariff degression Jul 1, 2011 0 % 0 % 0 % 0 %

Tariffs as of Jul 1, 2011 28.74 27.33 25.86 21.56

Tariffs as of Jan. 1, 2012

**app.. 15 % degression 24.43 23.23 21.98 18.33

Year of commissioning

Commercial zones, on

constructionsystems,

along motor- & railways(Ct/kWh)

Conversionand sealed

areas (Ct/kWh)

Jan 1, 2011 21.11 22.07

Tariff degression Jul 1, 2011 0 % 0 %

Tariffs as of Jul 1, 2011 21.11 22.07

Tariffs as of Jan 1, 2011* 18,94 18,76

For systems at or on buildings (or integrated) feeding to the grid:

For ground-mounted PV systems feeding to the grid:

Current feed-in-tariff for PV and estimations for 2012

Source: BSW Solar

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Remuneration system for electricity from biogas and biomass

Biogas in 2009 (Degression: 1,5% - Duration: 20 years)

Biomass in 2009 (Degression: 1 % - Duration: 20 years)

Up to 500 kWel

in ct/kWh

500 kWel - 5 MWel

in ct/kWh

1 MWel - 5 MWel

in ct/kWh

more than 5 MWel

in ct/kWh

Landfill gas 9,00 6,16 - -

Sewage gas 7,11 6,16 -

Mine gas 7,16 7,16 (up to 1 MWel) 5,16 4,16

Up to 150 kWel

in ct/kWh

150 kWel – 500 kWel

in ct/kWh

500 kWel - 1 MWel

in ct/kWh

5 MWel – 20 MWel

in ct/kWh

Biomass 11,67 9,18 8,25 7,79

Source: BMU