The German Renewable Energy Sources Act - Sistema de
Transcript of The German Renewable Energy Sources Act - Sistema de
The German Renewable Energy Sources ActObjectives, Design & Achievements
Dr. Volker Oschmann
Energy Policy in Germany
Ministry of Economics: fossil energies
Ministry for the Environment: renewable and nuclear energies
Outline
Overview of the Renewable Energy Sources Act (RE Act)
Objectives
Mechanism
Achievements
Feed-in tariffs in the EU Member States
Outline
Overview of the Renewable Energy Sources Act (RE Act)
Objectives
Mechanism
Achievements
Feed-in tariffs in the EU Member States
Renewable Energy Sources Act –What’s that?
“Feed-in law”:= fixes prices for electricity from renewable energies (RE)-> gives planning and investment security-> encourages private action and investments
Main instrument for promotion of RE electricity in Germany
Most successful German instrument to reduce CO2(52 million t in 2004)
Outline
Overview of the Renewable Energy Sources Act (RE Act)
Objectives
Mechanism
Achievements
Feed-in tariffs in the EU Member States
Objectives of the RE ActLong term: sustainable electricity system based on REShort term:
- develop RE- create an innovative RE industry- facilitate economies of scale- cost reduction
Specific targets for the share of RE electricity:- 2010: > 12.5 %- 2020: > 20 %- 2050: ~ 70%
Electricity Scenario up to 2050
0
100
200
300
400
500
600
700
2000 2010 2020 2030 2040 2050
[TW
h/a]
Nuclear energy Coal/gasCombined heat/power generation BiomassWater WindGeothermal energy PhotovoltaicsImported ren. energy
Quelle: Fischedick, Nitsch u.a
Hydropower
Outline
Overview of the Renewable Energies Act (RE Act)
Objectives
Mechanism
Achievements
Feed-in tariffs in the EU Member States
Main Features of the RE ActThe RE Act
Gives RE priority access to the electricity grid
Obliges grid operators to purchase the RE electricity
Fixes the price (tariff) for RE electricity
How does the RE Act work?
2. RE producer feeds electricity into the grid
1. RE Act sets tariffs and pay period
3. Grid operator pays remuneration (no state aid involved!)
4. Transfer of RE electricity and costs to the consumers
RE Act: Transfer Mechanism
Renewable Electricity
Payment
RE Power Plant
TransmissionGrid
Operators
DistributionDistributionGridGrid OperatorOperator
SupplyCompanies
Consumers
Feed-in tariffs in Germany
2.06.19-9.10Wind energy (offshore)
2.05.39-8.53Wind energy (onshore)
5.043.42-59.53Solar energy
1.07.16-15.00Geothermal energy (<20MW)
1.58.27-17.33Biomass (<20MW)
06.65-9.67Hydropower
Degression
(%/a)
2005 (Cent/kWh)
Degression: The tariff remains constant for commissioned installations, but depends on the year of the initial operation. The later an RE installation is commissioned, the lower the tariff
Why different tariffs?All types of RE are needed to reach the RE targets
Costs for RE electricity depend on different factors, e.g. kind of RE or size of plant
Consequences:tariffs need to be differentiated by source and size of planttariffs for new plants need to decrease every year to further technological development and to bring costs down
How do we calculate the tariff ?
Scientific studies investigate specific cost per kWh.
Payback period: 16 to 20 years
Internal rate of return: e.g. wind power: ~10%
E.g.: Wind PowerCalculation basis for tariffs:
Price of power plant (€ 895/MW)
Costs for infrastructure etc. (30% of price of power plant)
Operating costs year 1-10 (4.8% of price of power plant)
Operating costs year 11-20 (6% of price of power plant)
Expected rate of inflation for 20 years (2%)
Imputed interest (7.45%)- On borrowed capital (70%) : 5.5%- On own capital (30%): 12%
Outline
Overview of the Renewable Energy Sources Act (RE Act)
Objectives
Mechanism
Achievements
Feed-in tariffs in the EU Member States
Achievements of the REA (2005)
Rapid growth of RE (about 10 % per year since 1999)
Share of RE electricity about 11% by the end of 2005 [1999: 4.6 %]
150,000 jobs
11.5 billion euro turnover per year
6 billion euro investment per year
52 million tonnes of CO2 reduction
RE Electricity Generation in Germany
0,0005,000
10,00015,00020,00025,00030,00035,00040,00045,00050,00055,00060,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
[GW
h/a]
PhotovoltaicsBiomassWind energyHydropower
Electricity from:
Wind Energy in Germany
0,000
5,000
10,000
15,000
20,000
25,000
30,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
[GW
h/a]
0,000
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
[MW
]
Electricity generation Capacity
Photovoltaics in Germany
0
50
100
150
200
250
300
350
400
450
500
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
[GW
h/a]
0
100
200
300
400
500
600
700
800
[MW
]
Capacity Electricity generation
Share of RE Electricity Generation 2005
89%
11%
RenewableEnergiesOther Sources
Expected Development[b
illion
kWh/
a]
0
25
50
75
100
125
150
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
Hydro Power Wind Onshore Wind Offshore Biomass
Photovoltaics Geothermal Energy RE not included in REA Additional Costs for RE
Erzeugte Strommenge in Mrd. kWh je Jahrab 2003: erwartete EntwicklungElectricity produced (billion kWh p.a.)
Cost for the Promotion of RE just 3%
Share of costs for one kilowatt hour(18 Ct)
VAT14%
EEG3%
Electricity tax (Ecological Tax
Reform)11%
Production, transport and marketing of
electricity60%
CHP Act2%
Concession levy10%
Outline
Overview of the Renewable Energy Sources Act (RE Act)
Objectives
Mechanism
Achievements
Feed-in tariffs in the EU Member States
RE Electricity Policy in the EU:
Cert if icate Systems
BE
UKIT
SE
Quota
IE
Tender
FI
UK
NL
Tax measures
AT
DK
FR
DEESPT
LU
GR
Feed-in Tarif f
NL
PL
SKCYLVCZ
LT
HUEE
BG SIRO
SLMT
Cert if icate Systems
BE
UKIT
SE
Quota
IE
Tender
FI
UK
NL
Tax measures
AT
DK
FR
DEESPT
LU
GR
Feed-in Tarif f
NL
PL
SKCYLVCZ
LT
HUEE
BG SIRO
SLMT
Additional RE Generation 1997-2003
-5
0
5
10
15
20
25
30
AT BE FI FR DE IE IT ES SE UK
Cha
nges
of R
ES-E
gen
erat
ion
pote
ntia
l (2
003
vers
us 1
997)
[TW
h/ye
ar]
Gaseous biomass Solid biomass BiowasteGeothermal electricity Photovoltaics Wind on-shoreWind off-shore Hydro small-scale Hydro large-scale
Effectiveness wind onshore 1997-2004
0%
2%
4%
6%
8%
10%
AT BE FI FR DE IE IT ES SE UK EU 15
aver
age
annu
al e
ffect
iven
ess
indi
cato
r [%
]
Feed-in tariffsTender Quota/tradable green certificates
Tax incentives/rebates
Level of support for wind onshore
0
2
4
6
8
10
12
14
16
18
AT BE DE DK ES FI FR GR IE IT LU NL PT SE UKSup
port
win
d po
wer
ons
hore
(€c
t/kW
h)
Feed-in tariffs
Tender Quota/Tradable green certificates
Tax Incentives/Rebates
2004
Effectiveness vs. annuity (wind onshore)
BE-Flandern
BE-WallonienFR
DE IE
IT
ES-Marktoption
ES-Festpreis
SEUK
AT
0%
5%
10%
15%
20%
0 2 4 6 8 10 12 14Normalised support level [€ Cent/kWh]
Effe
ctiv
enes
s in
dica
tor
Feed-in system Tender system Quota / TGC 2004
Conclusions:European Commisison (12/2005):
„feed-in tariffs are currently in general cheaper and moreeffective than so called quota systems“, because
- they give high planning and investment security- involve lower risks for the investor- are easy to handle- cause low transaction costs
But: Success depends highly on details of regulation -> design carefully and properly!
Thank you for your attention!
www.erneuerbare-energien.de
Comparison of main RE instruments
Feed-in laws: price fixed, quantity determined by market
Quota obligation/tender: quantity fixed, price determined bymarket
LawMarketQuota/Tender
MarketLawFeed-in law
QuantityPrice
=> In both cases markets are regulated