Germany aims at having a sustainable energy supply, satisfying a large number of requirements, such as: compatibility with environment, climate and health (i.e. less greenhouse gas emissions); sparing use of resources for future generations; low risks; equality of access, social equity and public acceptance. At the same time the energy supply should also give a fresh boost to innovation and help to create jobs. In this framework, the German government has concluded that the development of renewable energy sources is capable of meeting these requirements of the country.
In addition, if the energy demand in Germany is reduced by practicing energy efficiency, a scenario of optimal renewable energy, then the proportion of these domestic sources of renewable energy alone will accordingly increase to levels considerably higher than 60%.
Measures and Instruments Supporting Renewable Energy in Germany
Various activities already are being undertaken by the German Government for the promotion of the applications of renewable energy and energy efficiency in Germany. For instance, the revised Renewable Energy Sources Act (EEG) creates the ideal framework for further expansion of electricity generation from renewables.
The specific measures and instruments that support renewable energy promotion in Germany include the following:
_ The Renewable Energy Sources Act (EEG) superseded the very successful Electricity Feed-In Act in the year2000, and was subsequently adapted to meet the new basic conditions for the liberalized and hence more competitive markets. The Renewable Energy Sources Act foresees payment at a fixed reimbursement rate for an assured period of time for feeding electricity from renewable energy into the grid and increases the investment security for the operators, which are overwhelmingly in the private sector so far.
Within the scope of the Renewable Energy Sources Act, specific issues concerning bio-energy are regulated. While retaining this proven basic structure, the government's draft from the end of 2003 to amend the Renewable Energy Sources Act adapts the reimbursement rates to ongoing developments.
_ Within the "100,000-roof programme", low-interest loans were made available for the installation of photovoltaic systems on the roofs of households. It was successfully concluded in 2003. As a result about 350 MW installed capacity was achieved. The further expansion of photovoltaic systems will be supported.
_ In 2003, the volume of financial support from the German government for the market stimulation programme was around 190 million Euros and this will be increased to 230 million Euros by the year 2006. In this way, subsidies are being made available for investments. On the one hand, investment-cost subsidies are available which focus in particular on systems providing heat (e.g. solar-thermal energy, geothermal energy), biogas systems, and systems which are operated by multipliers (e.g. schools). At the same time, larger projects within the scope of this programme receive financial support in the form of low-interest loans.
_ Further low-interest loans are available for renewable energy purposes, for different parties, from the KfW and DtA banks. E.g. within the scope of the CO2 reduction programme, a total of some 6.9 billion Euro were granted by these two banks in the period 1999 - 2002 in the form of loans.
_ Exemption for bio-fuels from the mineral oil tax.
_ Support provided in the form of advisory services, information, and public relations work.
_ Support provided for demonstration and pilot plants.
_ The programme for an eco-premium for homebuilders which, in addition to the normal owner-occupied
home subsidies for the installation of solar energy systems, provided further financial support in the form of tax relief. The volume of financial support amounted to roughly 60 million Euro in the period 1995 - 2001.
_ Specific financial support programmes in the agricultural sector (amongst others, biogenous fuels and lubricants).
_ The Energy-Saving Ordinance which, in addition to thermal insulation, also permits active measures (e.g. installation of a solar system) in order to comply with specific energy requirements for the building.
_ The support of measures in the European environment, like e.g. participation in jointly establishing areas of research to be focused on in Europe within the concept of the 6th Framework Programme of the EU, inclusion of the positive German experience made with the Feed-In Ordinance in the drafts for European directives.
_ An increased focus of energy research funds to renewable energies. In 2003, the German government released a total of about 162 million Euros for energy research projects. Of these, about 60 million Euros were used for research and development in the field of renewable energy.
The German renewable energy sources present the following picture:
WIND POWER
It is applied for electricity generation, which costs 5.5 to 13 cents/kWh. Capacities between 0.05 kW to 5 MW per wind turbine are installed, wind farms of 100 MW and more are established. Modern wind turbines already produce electricity with an energy yield very close to the theoretical maximum, i.e. 50% efficiency.
The installed wind capacity in Germany has been growing considerably for years now. New wind turbines with a total capacity of 2,645 MW were installed in 2003, thereby increasing the number of wind power stations to some 15,400 installations with a total installed capacity of 14,600 MW by the end of 2003. With a total electricity yield of 18.5 TeraWh, wind power now provides some 3 % of the electricity generated in Germany, which is equivalent to a reduction of CO2 emissions of about 15 million tons. There is no country in the world with more wind turbines than Germany.
HYDROPOWER
Hydropower is applied for electricity generation and energy storage. Electricity costs between 2 and 10 cent/kWh for large size power stations and between 10 and 25 cent/kWh for small-scale hydropower stations.
In 2003 a total of 20.4 TeraWh were generated from hydropower plants in Germany with an installed capacity of about 4,600 MW (excluding pump storage power plants).
PHOTOVOLTAIC SYSTEMS
Photovoltaic Solar cells directly convert sunlight into electrical power without any mechanical, thermal, or chemical intermediate steps. Electricity from photovoltaic installations costs: 50 to 80 Cent/kWh.
The volume of the German photovoltaic market rose from 0.6 MWp/yr to 80 MWp/yr in the period from 1990 to 2001. With a total capacity of approximately 400 MWp (2003), Germany is the second largest market after Japan for photovoltaic systems.
Grid-connected photovoltaic systems: A typical system consists of a solar generator integrated into the roof or the façade of a building. The generator provides direct current power when irradiated, which is transformed into alternating current by means of a current inverter, and can then be used directly by domestic appliances or fed into the grid. While the capacity of a typical domestic solar installation is between 2 and 5 kWp. In 1999, the German federal government introduced the 100,000-roof programme to encourage the market introduction of photovoltaic systems by providing low interest loans.
SOLAR COLLECTORS
By using solar collectors, the radiated sunshine is transformed into heat, e.g. for hot water for daily use, or for heating the building. Capacit1es between 1.5 to 200 MWh/yr are installed. Space heating costs today between 10 and 25 Cent/kWh. About 550,000 m2 of glass-covered collectors were sold in Germany in 2002. There are a total of 5 million m2 of collectors installed on German roofs. More than 2.5 billion kWh of fossil fuels have been substituted in this way, equivalent to 250 million litres of heating oil.
PASSIVE USE OF SOLAR ENERGY
Direct and diffuse solar radiation is directly used for heating buildings. As a rule, the saving in fuel costs compensate for the additional expenses related to the systems, such as transparent insulation material.
Passive use of solar energy is characterized by the fact that the solar energy is used without any technical
support like pumps. In the cold season wall s of buildings are used for heat storage and insulation.
BIOMASS
Biomass resources are: Wood, grain, vegetation containing sugar and starch, plants containing oil, organic leftovers, and bio-waste, including the municipal solid waste.
Field of application include: Electricity generation, heating purposes, combined heat and power generation (cogeneration). Thermal plants of capacity 1 kW to 50 MW are installed all over Germany. Heat energy costs between 1 and 10 cent/kWh and Electricity: between 5 and 30 Cent/kWh.
The use of biomass for generating electricity and heat is a particularly attractive form of energy conversion from the climate point of view. When growing, plants first remove the greenhouse gas CO2 from the atmosphere and bind the carbon into biomass.
The interest in producing electricity from biomass has increased considerably since adoption of the biomass
regulation in mid-2001. The electricity generation from wood alone (1.2 billion kWh in 2002) will double by 2006.
By anaerobic fermentation of bio-wastes biogas is produced, which is utilized similar to natural gas. It is used to generate electricity, preferably in cogeneration units. Biogas is liberated when organic material is decomposed by anaerobic bacteria. 100 cubic meters of biogas develop from between a half and one ton of bio-waste, corresponding to the daily excrement from 90 cows or 12,000 chickens.
The largest potential for producing biogas is to be found in agriculture and municipal solid waste treatment. More than 1,500 biogas plants currently are in operation in German farms producing an overall energy equivalent to 360 billion kWh/year.
BIOFUELS
Transportation is the single largest consumer of energy in Germany with nearly 30 %, closely followed by households (28 %) and industry (26 %). This implies that there is a ready market for bio-fuels.
Biofuels come from various biomass sources and are used in combustion engines and fuel cells, in the future. They are more expensive than fossil fuels. There is not just the one biofuel, but rather a whole range of liquid and gaseous bio-energy carriers which can be used in the transportation sector. Best known among the liquid biofuels are the vegetable oils from rape seed and sunflower seeds, and the processed form of rape oil called biodiesel. Ethanol from sugar beets, grain, potatoes, etc., and methanol from lignocellulosic material, such as wood, are major types of liquid biofuels.
GEOTHERMAL ENERGY
Geothermal energy, or heat from the earth, is heat which reaches the surface of the earth from the earth's molten core. This heat is used to produce steam and operate power plants. Capacities of such power plants range: 6 - 8 kW for geothermal probes and 3 to 30 MW for hydrothermal plants. Energy production costs range: 2 to 6 cent/kWh for Heat and 7 to 15 cent/kWh for electricity.
In Germany, the hydro-geothermal energy has long been tapped as an energy source. At the beginning of 2003, there were 34 plants in operation, with a thermal output totaling 88 MW.
HYDROGEN AND RENEWABLE ENERGY
Hydrogen is generated from renewable energy sources (e.g. solar photovoltaics) through electrolysis of water. So hydrogen production cost is coupled to the costs of primary energy. E.g. hydrogen from natural gas costs about 4 cent/kWh; from biomass approximately 9 - 13 cent/kWh; from low-cost hydropower (electrolysis) approximately 8 - 10 cent/kWh.
Hydrogen from solar energy and water will one day form an inexhaustible source of heat and electricity. As a consequence, the further expansion of renewables would be associated with the rapid introduction of hydrogen.
One of the main reasons for the renaissance of hydrogen is the fuel cell technology. This innovative and very efficient energy converter transforms hydrogen and oxygen into water while generating electrical and thermal energy and without producing any of the pollutants associated with conventional fuels and engines. This makes hydrogen as an ideal fuel in the transportation sector.
Production of hydrogen from renewable energy sources is not necessary before 2025 because of the high costs.