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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
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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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