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Local Renewables Freiburg 2007 June 14, 2007
Renewable Energy Law Stimulating Investment in
Germany
Tobias Kelm Centre for Solar Energy and Hydrogen
Research
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Content

• German Renewable Energy Law (EEG)
• Development of renewable electricity in Germany
• Investment and Employment in the RES/RES-E-sector
• Support schemes for RES-E in the EU

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EEG Principles

• Feed-in tariff system
• Obligation on grid operators to connect RES-E
  plants, to purchase RES-E and to pay fixed prices
  (remuneration)
• Obligation on suppliers to purchase RES-E from
  grid operators at an average remuneration
• The amount of remuneration is cost oriented,
  differentiated by technology, commissioning year
  and capacity
• Remuneration is fixed for 20 years
• ? Planning and cost reliability for investors

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Development and goals of renewable electricity in
Germany
Source Renewable Energy in Figures, BMU (2007)
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Development of RES-E Generation in Germany
amended EEG
Source Renewable Energy in Figures, BMU (2007)
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Wind Power Development in Germany
Source Renewable Energy in Figures, BMU (2007)
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Photovoltaics Development in Germany
amended EEG
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Development of annual remuneration
amended EEG
Figures for 2006 provisional
Remuneration total costs (of which
approximately 50 are differential costs)
Source Association of German network operators
(2007)
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Electricity Bill 2006
Total 0.194/kWh
Approximately 2 per month for a typical 3-person
household
Source BMU (2007)
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Turnover from investment and operation in 2006
11.3 billion from investment in construction of
RES-plants 10.3 billion from operating RES-plants
Source BMU (2007)
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Employees in the renewable energy sector
Employees in the RES-E-sector 124,000 in 2006
(98,000 in 2004)
Source BMU (2007)
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Dominating support schemes for RES-E in the EU
Feed-in tariff
FI
Quota
SE
Feed-in tariff and Quota
EE
LA
DK
LT
IE
UK
PL
NL
Tax incentives / Investment grants
DE
BE
BE
CZ
SK
LU
AT
FR
HU
SI
Other system
IT
PT
ES
GR
MT
CY
A clear majority of EU countries use feed-in
tariffs as a main instrument
Source Feed-In Cooperation
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Summary

• Development of RES-E in Germany has mainly been
  driven by the establishment of the EEG,
  implemented in 2000
• Deployment requires time and money
• Tools of German RES-E policy have been
  successful for accelerating the market for RES-E
  and thus for the generation of investment and
  employment

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• Thank you for your attention!

Tobias Kelm Centre for Solar Energy and Hydrogen
Reseach tobias.kelm_at_zsw-bw.de www.zsw-bw.de