Objectives:: German Policies Background

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GERMAN POLICIES Background:

Germany currently imports 88 % of its gas needs and 98 % of its oil needs, making us heavily dependent on energy imports. Energy policy needs to address climate change. Energy consumption in Germany accounts for some 80 % of our green-house gas emissions

OBJECTIVES:
The Energy Concept plans to cut greenhouse gas emissions by 40 % by 2020, and by at least 80 % by 2050 as agreed by the industrialised nations. The aim is to increase their share in gross final energy consumption from roughly 10 % in 2010 to 60 % in 2050. The share of renewables in electricity supply is to grow to as high as 80 % by 2050. By 2050, electricity consumption is to drop 25 % compared to 2008, and should already be down 10 % by 2020 Final energy consumption in the transport sector is to be reduced by around 40 % by 2050 compared to 2005 levels. The annual rate of energy retrofits for buildings is to be doubled from current levels.

Policy 1

2009 Amendment of the Renewable Energy Sources Act -EEG

Background:
In January 2011 the installed capacity in Germany was around 160 GW (according to ENTSO-EForecast). Of these 160 GW, around 93 GW could be considered reliably available capacity. Renewable energy sources (wind, photovoltaics, biomass, hydro) only contribute around 12 GW to this reliably available capacity. Of the renewable sources of energy, photovoltaic energy is not available at all in a reliable available capacity, and wind energy only to a minor extent. Hydro power is the renewable source that makes the biggest contribution to the reliably available capacity.

Aim and key provisions / targets : On 1 January 2009 the amendment of the Renewable Energy Sources Act (EEG) came into force. It provides a higher feed-in tariff for wind energy The law also increases the repowering bonus, to support the replacement of old turbines by new ones Hydropower tariffs have increased, and differentiate between new and modernised facilities Biogas facility tariff changes generally favour small plants. Tariffs for landfill gas facilities have increased for small plants . Tariffs for geothermal facilities increase, and are simplified into under and over 10MW capacity categories. For Solar PV, tariffs under the new law decreased for all capacity sizes On 1 January 2011 a degression of 13% for PV-systems became effective
Policy 2 CHP Support

Aim and key provisions / targets : 1. 25 June 2001, the German government and German industrial sector and energy industry initialled an agreement concerning the reduction of CO2 emissions and the promotion of CHP generation 2. The objective being to reduce emissions by 2010 by a total of roughly 45 million tonnes of CO2/year by at least a minimum of 20 million t CO2/year.

3. Under this policy the objective is to increase the % of high efficiency CHP in the national energy mix from 12% to 25% 4. A fixed price is paid for the electricity generated by the Combined Heat and Power plant, whether it is fed into the grid or consumed. Policy 3 Background: In the wake of the previously unimaginable Fukushi-ma disaster, Germany decided to abandon nuclear energy by 2022. The seven oldest nuclear power stations have been taken off the grid permanently since spring 2011. The nine remaining nuclear power plants will be shut down gradually by 2022. Amendment of the Atomic Power Act: nuclear phase out

Aim and key provisions / targets : 1. In May 2011, the German Government announced domestically-driven plants to withdraw from nuclear power completely by 2022. This will change the electricity generation mix in the country.

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