www.germany.info

current trends and the role of markets

in Germany´s energy transition

Joint meeting of the Minnesota Environmental Quality Board and

the Minnesota Public Utilities Commission, November 29, 2016

Jens Acker, German Embassy

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1. targets and state of play

2. the role of markets in energy transition

3. current trends

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1. targets and state of play

So

urc

e:

Fe

de

ral

Go

ve

rnm

en

t2

01

0, B

MU

/BM

Wi

20

14

, BM

Wi

20

15

, A

GE

E-S

tat

20

14

, AG

EB

20

15

, Ag

ora

20

16

Climate

Renewable

Energies

Energy

Efficiency

% gross final energy

consumption

% gross electricity

consumption

% primary energy

consumption (vs. 2008)

final energy productivity

(vs. 2008)

building renovation

% greenhouse gas

reduction (vs. 1990)

2020 2025 2030 2035 2040 2050

+2.1% p.a. (2008-2050)

doubling of renovation rate: 1% � 2% p.a.

-40-55

-70 -80 to -95

35 40 to 4550 65

8055 to 60

1830

4560

-20

-50

13,7%

32.5% (2015)

- 7.3 %(2015)

1.7% p.a.

~1% p.a.

-27%

Achieved

2014

1.7%% transport energy

consumption (vs. 2008)-10 -40

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2. the role of markets

• EU Emissions Trading System:

• 2013 – 2020 => - 21 % vs 2005

• 2021 – 2030 => - 43 % (proposed)

• liberalized power market• consumers choose their supplier

• no monopolies!

• new supplier: guaranteed access to the

grid => regulator

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2. the role of markets

• European Power Exchange in

Paris and i.a. Leipzig is trading

platform for GER, F, AUT and CH

• => market decides on dispatch!

• support for renewables must take

into account market setting!

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• Renewable Energy Sources Act

(amendment 2017)

• Energy efficiency

• climate protection plan (long term deep

decarbonisation strategy)

3. latest trends in Germany

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IRENA 2016

renewables cost reduction

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auction pilots for ground-mounted PV

So

urc

e:

Eco

fys

20

16

ba

sed

on

BN

etz

A

2nd and 3rd round: uniform pricing1st round (pay-as-bid)

8,49

9,17

8,00

7

7,5

8

8,5

9

9,5

10

Jan 2015 Mai 2015 Sep 2015 Jan 2016

cent/kWh

Level of feed-in premium as result of the auctions compared to the old EEG

Feed-in permium ofold EEG

Results of auctionsin cent/kWh

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• auctions determine level of support

• auctions also define pace of transition

• Wind onshore 2,8 -2,9 GW/y

• Wind offshore: 500 – 840 MW/y

• Photovoltaic: 600 MW/y

• Link to grid expansion + provisions for stakeholder diversity

Renewable Energy Sources Act

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Increase market integration through premium system

price signal reaches RES generators, who thus react to market needs,

generators can create additional profit by adjustment to market prices

Renewable Energy Sources Act

Feed-in Tariff

level (FiT)

Low

market

price

High

market

price

Profit

Market Premium (paid out by TSO, average difference between

market price and FiT, determined monthly)

Average Market Revenues(fluctuating market price)

Risk

€

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Energy Efficiency: general approach

Transport

Buildings

Industry and business

• Labelling (EU Directive Fuel Economy)

• Regulation of consumption

• Motor vehicle taxation

• E-mobility strategy

• Mobility and fuel strategy

taxation – regulation – financial incentives – information & consultation

• Obligatory energy audits

• KfW credits and loans

• Energy consulting services

Industry and business

• Energy saving legislation

• KfW progammes for

construction

Buildings

• Energy Efficiency Labelling

Ordinance

• National Top Runner

Initiative

Products & appliances

Transport

• Motor vehicle taxation

• Regulation of consumption

www.germany.info

Energy efficiency: tendering tool

Tendering

agency

Govern-

ment

Proof of

energy savings

Companies

(individual

projects)

Companies

(collective

projects)

Energy

service

providers

End-user(s) End-user(s)

Contract (incl. MRV)Application

Measures (incl. MRV)

• Funding quota max. 30% of

investment costs and 0.10 €/kWh

saved

• Min. amortisation rate of 3 years

• Open for individual and collective

projects

• Between 26 and 51.5 PJ can be

realised in energy savings until

2020

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climate protection plan 2016

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new: sectoral targets for 2030

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Thank you!

Happy to answer your questions.