Renewable energy in Germany

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Photovoltaic array and wind turbines at the Schneebergerhof wind farm in the German state of Rheinland-Pfalz
Biogas fermenter, wind turbine and photovoltaics on a farm in Horstedt, Schleswig-Holstein
Renewable electric power produced in 2011 by energy source

Germany's renewable energy sector is among the most innovative and successful worldwide. Nordex, Repower, Fuhrländer and Enercon are wind power companies based in Germany. Solon SE, Q-Cells and Conergy are solar power companies based in Germany. These companies dominate the world market. Every third solar panel and every second wind rotor is made in Germany, and German turbines and generators used in hydro energy generation are among the most popular worldwide.[1] In 2010, investments totaling 26 billion euros were made in Germany’s renewable energies sector. According to official figures, some 370,000 people in Germany were employed in the renewable energy sector in 2010, especially in small and medium sized companies. This is an increase of around 8 percent compared to 2009 (around 339,500 jobs), and well over twice the number of jobs in 2004 (160,500). About two-thirds of these jobs are attributed to the Renewable Energy Sources Act[2][3] Germany has been called "the world's first major renewable energy economy".[4]

The share of electricity produced from renewable energy in Germany has increased from 6.3 percent of the national total in 2000 to about 25 percent in the first half of 2012.[5][6] In 2011 20.5% (123.5 TWh) of Germany's electricity supply (603 TWH) was produced from renewable energy sources, more than the 2010 contribution of gas-fired power plants.[7][8] Siemens chief executive, Peter Löscher believes that Germany’s target of generating 35 per cent of its electricity from renewables by 2020 is achievable – and, most probably, profitable for Europe’s largest engineering company.

In 2012, the use of variable renewable energy is, according to the German newspaper Der Spiegel, causing increasing electricity prices and grid instability induced power outages.[9] However, based on official statistics for the period between 2007 and 2012, electricity prices for industrial consumers in Germany were decreased from €94.6 to €89.5 per MWh.[10]


Contents

Renewable energy targets [edit]

Wind and solar power accounted for over 16% of the electricity generated in Germany in 2012

Since the passage of the Directive on Electricity Production from Renewable Energy Sources in 1997, Germany and the other states of the European Union have been working towards a target of 12% renewable electricity by 2010. Germany passed this target early in 2007 when the renewable energy share in electricity consumption in Germany reached 14%.[11] In September 2010 the German government announced the following new ambitious energy targets:[12]

  • Renewable electricity - 35% by 2020, 50% by 2030, 65% by 2040, and 80% by 2050
  • Renewable energy - 18% by 2020, 30% by 2030, and 60% by 2050
  • Energy efficiency - Cutting the total energy consumption by 20% from 2008 by 2020 and 50% less by 2050
  • Total electricity consumption - 10% below 2008 level by 2020 and 25% less by 2050

The German Government reports that in 2011 renewable energy (mainly wind turbines and biomass plants) generated more than 123 TWh (billion kilowatt-hours) of electricity, providing nearly 20% of the 603 TWh of electricity supplied.[7]

Chancellor Angela Merkel, along with a vast majority of her compatriots, believes that, "As the first big industrialized nation, we can achieve such a transformation toward efficient and renewable energies, with all the opportunities that brings for exports, developing new technologies and jobs".[13]

Wind power [edit]

Wind farm in Bernburg
See main article: Wind power in Germany

Wind power in Germany describes wind power in Germany as part of energy in Germany and renewable energy in Germany. In 2011, the installed capacity of wind power in Germany was 29,075 megawatts (MW), with wind power producing about 8 percent of Germany’s total electrical power.[14] According to EWEA in a normal wind year, installed wind capacity in Germany will meet 10.6% at end 2011 and 9.3% at end 2010 of the German electricity needs.[15][16]

More than 21,607 wind turbines are located in the German federal area and the country has plans to build more wind turbines.[17][18] As of 2011, Germany's federal government is working on a new plan for increasing renewable energy commercialization,[19] with a particular focus on offshore wind farms.[20] A major challenge is the development of sufficient network capacities for transmitting the power generated in the North Sea to the large industrial consumers in southern Germany.[21]

Photovoltaic solar power [edit]

Solar Electricity potential in Germany
Erlasee Solar Park
See also: Solar power in Germany

In July 2012, there was a cumulative installed total solar PV power of 29.7 GW.[22] Solar PV provided 18 TW·h (billion kilowatt-hours) in 2011, 3% of the total electricity demand. As solar power installations rise fastly, in first half of 2012, about 5.3% of the total electricity demand was covered by solar power.[23] At 25 May 2012, a Saturday, solar power reached a new record with feeding 22 GW, as much as 20 nuclear power stations, into the German power grid, which made 50% of the nation's midday's electricity demand.[24]

Some market analysts expect the solar electricity share could reach 25 percent by 2050.[25] Price of PV systems has decreased more than 50% in 5 years since 2006.[26]

Geothermal power [edit]

See main article: Geothermal power in Germany

The installed capacity for geothermal energy in Germany was of 8.9 MW in 2007.[27]

Hydroelectricity [edit]

The total installed capacity in Germany at the end of 2006 was 4.7 GW. Hydropower meets 3.5% of the electricity demand. Latest estimates show that in Germany in 2007 approx. 9,400 people were employed in the hydropower sector which generated a total turnover of €1.23 billion.[28]

Biofuels [edit]

Biofuel and biomass is one of Germany's most important sources of renewable energy. In 2010, biomass accounted for 30% of renewable electricity generation[29] and for 70% of all renewable energy (mostly wood).[30]

Germany has committed to blending 6.25% biofuels in petroleum by 2014 with the Biofuels Quota Act.[31][32]

Renewable energy industry [edit]

Source:[7]
The yearly yield of renewable electricity in Germany by source.

Germany's renewable energy sector is among the most innovative and successful worldwide. Nordex, Repower, Fuhrländer and Enercon are wind power companies based in Germany. SolarWorld, Q-Cells and Conergy are solar power companies based in Germany. These companies dominate the world market. Every third solar panel and every second wind rotor is made in Germany, and German turbines and generators used in hydro energy generation are among the most popular worldwide.[1]

Nearly 800,000 people work in the German environment technology sector; an estimated 214,000 people work with renewables in Germany, up from 157,000 in 2004, an increase of 36 percent.[1]

Siemens chief executive, Peter Löscher believes that Germany’s target of generating 35 per cent of its energy from renewables by 2020 is achievable – and, most probably, profitable for Europe’s largest engineering company. Its “environmental solutions” portfolio, which is firmly focused on renewables, is “already generating more than €27 billion a year, 35 per cent of Siemens’ total revenue, and the plan is to grow this to €40 billion by 2015”. Ending its involvement in nuclear industry will boost the credibility of Siemens as a purveyor of “green technology”.[33]

Germany's main competitors in solar electricity are Japan, the US and China. In the wind industry it is Denmark, Spain and the US.

Government policy [edit]

The renewable energy sector benefited when the Alliance '90/The Greens party joined the Federal Government between 1998 and 2005. The renewable energy sector was aided especially by the Renewable Energy Sources Act that promotes renewable energy mainly by stipulating feed-in tariffs that grid operators must pay for renewable energy fed into the power grid. People who produce renewable energy can sell their 'product' at fixed prices for a period of 20 or 15 years. This has created a surge in the production of renewable energy.[34] In 2012, Siemens estimated the total cost of renewable energy would come to at least €1.4 trillion (US$1.8 trillion) by 2030.[35]

For the 2005–2010 period the Federal Government set aside nearly 800 million euros for scientific research in the country. That research will be earmarked for policies of long-term development. Additionally, in 2001 a law was passed requiring the closing of all nuclear power plants within a period of 32 years. The shutdown time was extended to 2040 by a new government in 2010. After the Fukushima incident, the law was abrogated and the end of nuclear energy was set to 2022.

The cost of replacing Germany's nuclear power generation with renewable energy has been officially estimated by the German Ministry of Economics at about €0.01/(kW·h) (about €55 billion for the next decade), on top of the €13 billion per year already devoted to subsidizing renewables. However, unofficial estimates of the ministry, and of the Rhenish-Westphalian Institute for Economic Research (RWI), German Energy Agency (DENA), Federation of German Consumer Organizations (VZBV), and the government-owned development bank (KfW), put the cost several times higher, at about €250 billion ($340 B) over the next decade.[36][37]

The German energy policy is framed within the European Union, and the March 2007 European Council in Brussels approved a mandatory energy plan that requires a 20% reduction of carbon dioxide emissions before the year 2020 and the consumption of renewable energies to be 20% of total EU consumption (compared to 7% in 2006).[38] The accord indirectly acknowledged the role of nuclear energy — which is not commonly regarded as renewable, but emissions-free — in the reduction of the emission of greenhouse gasses, allowing each member state to decide whether or not to use nuclear generated electricity.[39]

Also a compromise was reached to achieve a minimum quota of 10% Biofuels in the total consumption of gasoline and diesel in transport in 2020.

Debate [edit]

A 2009 study from RWI Essen of the effects of the Renewable Energy Sources Act concluded that:

  • using photovoltaics in emission reduction is 53 times more expensive than the European Union Emission Trading Scheme's market price, while wind power is 4 times more expensive, thereby discouraging other industries from finding more cost-effective methods of reducing emissions;
  • although renewable energy subsidies increase retail electricity rates by 3%, they reduce the profits of German electrical utilities by an average of 8%, making them less competitive with other European utilities;
  • despite lavish subsidies, Germany's photovoltaic industry is losing its market share to other countries, particularly China and Japan;
  • it stifles renewable energy innovation by arbitrarily awarding subsidies to different technologies, instead of according to their cost-effectiveness.[40]

Germany's Federal Ministry for Environment, Nature Conservation and Nuclear Safety responded to the RWI Essen study, describing the criticisms as "well known and refuted a long time ago".[41]

In 2013, Peter Altmaier, an environment minister in Germany stated.[42]

The costs of our energy reform and restructuring of energy provision could amount to around 1 trillion euros by the end of the 2030s...We need a cost brake that will limit the costs of renewable energy equally for all consumers for the long term.

Germany was generating about 25 percent of its electricity from coal, about 61 percent from fossil fuels in total, 23 percent from nuclear power and about 15-20 percent from renewable sources in 2009. In 2012 The German electricity sector increased its coal usage by 4.9 percent over its coal consumption value of 2011.[43] This increase in coal usage was largely due to a power gap in Germany created after the nation shutdown 8 of its 17 nuclear power plants.[44] The shortfall in electricity supply from these 8 power plants, is primarily being filled by building more lignite coal burning power plants.[45][46] The return to coal in Germany, beginning in 2011, could undermine the nations legal commitment to the kyoto protocol's carbon dioxide reductions.[47][48][49]

In 2012, the use of variable renewable energy is, according to the German newspaper Der Spiegel, causing increasing electricity prices and grid instability induced power outages.[50][51] Based on official statistics for the period between 2007 and 2012, electricity prices for industrial consumers in Germany decreased from €94.6 to €89.5 per MWh.[52] Based on the same statistics for the period between 2006 and 2012, electricity prices for industrial consumers in Germany increased from €87.1 to €89.5 per MWh in 2012.[53] Moreover, according to a 2012 survey conducted by members of the Association of German Industrial Energy Companies in relation to power outages:[54]

The number of short interruptions to the German electricity grid has grown by 29 percent in the past three years. Over the same time period, the number of service failures has grown 31 percent, and almost half of those failures have led to production stoppages.[Machinery] Damages have ranged between €10,000 and hundreds of thousands of euros, according to company information.

Statistics [edit]

Increases in installed renewable electric power capacity and generation in recent years is shown in the table below:[55]

Year Installed
capacity
[MW]		 Hydropower
[GWh]		 Wind energy
[GWh]		 Biomass
[GWh]		 Biogenic share
of waste
[GWh]		 Photovoltaics
[GWh]		 Geothermal
energy
[GWh]		 Total electricity
generation
[GWh]		 Share of gross
electricity
consumption
[%]
onshore offshore
1990 4,069 15,580 71 221 1,213 0.6 17,086 3.1
1991 4,097 15,402 100 260 1,211 1.6 16,974 3.1
1992 4,331 18,091 275 296 1,262 3.2 19,927 3.7
1993 4,483 18,526 600 433 1,203 5.8 20,768 3.9
1994 4,864 19,501 909 569 1,306 8.0 22,293 4.2
1995 5,464 20,747 1,500 665 1,348 11 24,271 4.5
1996 5,874 18,340 2,032 759 1,343 16 22,490 4.1
1997 6,477 18,453 2,966 880 1,397 26 23,722 4.3
1998 7,473 18,452 4,489 1,642 1,618 32 26,233 4.7
1999 9,012 20,686 5,528 1,849 1,740 42 29,845 5.4
2000 10,875 24,867 9,513 2,893 1,844 64 39,181 6.8
2001 13,756 23,241 10,509 3,348 1,859 76 39,033 6.7
2002 17,487 23,662 15,786 4,089 1,949 162 45,648 7.8
2003 20,857 17,722 18,713 6,086 2,161 313 44,995 7.5
2004 24,074 19,910 25,509 7,960 2,117 556 0.2 56,052 9.2
2005 28,122 19,576 27,229 10,978 3,047 1,282 0.2 62,112 10.1
2006 31,883 20,042 30,710 14,841 3,844 2,220 0.4 71,657 11.6
2007 35,479 21,169 39,713 19,760 4,521 3,075 0.4 88,238 14.3
2008 39,597 20,446 40,574 22,872 4,659 4,420 17.6 92,989 15.1
2009 46,584 19,036 38,602 38 25,989 4,352 6,583 18.8 94,618 16.4
2010 55,742 20,956 37,619 174 29,085 4,781 11,683 27.7 104,372 17.1
2011 65,843 17,674 48,315 568 31,920 5,000 19,340 18.8 123,519 20.5
2012 76,017 21,200 45,325 675 35,950 4,900 28,000 25.4 136,075 22.9

See also [edit]

Portal icon Renewable energy portal
Portal icon Germany portal
Portal icon European Union portal

References [edit]

  1. ^ a b c Green energy boom in Germany
  2. ^ Renewable Energy Sources in Figures - National and International Development
  3. ^ Germany Leads Way on Renewables, Sets 45% Target by 2030
  4. ^ Germany: The World's First Major Renewable Energy Economy
  5. ^ Crossing the 20 Percent Mark. Green Energy Use Jumps in Germany
  6. ^ Erneuerbare Energien liefern mehr als ein Viertel des Stroms (in German)
  7. ^ a b c "Development of Renewable Energy Sources in 2011". December 2012. 
  8. ^ Paul Gipe (25 March 2011). "New Record for German Renewable Energy in 2010". Renewable Energy World. 
  9. ^ http://www.spiegel.de/international/germany/instability-in-power-grid-comes-at-high-cost-for-german-industry-a-850419.html
  10. ^ http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&plugin=1&language=en&pcode=ten00114
  11. ^ Share in electricity supply has gone up to 14 per cent
  12. ^ The Federal Government's energy concept of 2010 and the transformation of the energy system of 2011 p. 5
  13. ^ Alexander Ochs (2012-03-16). "The End of the Atomic Dream: One Year After Fukushima, the Shortfalls of Nuclear Energy Are Clearer Than Ever". Worldwatch. 
  14. ^ Bundesministerium für Wirtschaft und Technologie (February 2012). "Die Energiewende in Deutschland". Berlin. p. 4. 
  15. ^ Wind in power 2011 European statistics EWEA February 2012, pages 4 and 11
  16. ^ Wind in power 2010 European statistics EWEA February 2011, page 11
  17. ^ "Wind energy in Germany". 
  18. ^ "72,6 Gigawatts Worldwide" (PDF). Wind Energy Barometer. February 2007. Retrieved 4 July 2007. 
  19. ^ "100% renewable electricity supply by 2050". Federal Ministry for Environment, Nature Conservation and Nuclear Safety. 26 January 2011. Retrieved 4 June 2011. 
  20. ^ Schultz, Stefan (23 March 2011). "Will Nuke Phase-Out Make Offshore Farms Attractive?". Spiegel Online. Retrieved 26 March 2011. 
  21. ^ The Wall Street Journal Online, 24 April 2012
  22. ^ Entwicklung des deutschen PV-Marktes Jan-Jul 2012 (German)
  23. ^ Erneuerbare Energien liefern mehr als ein Viertel des Stroms
  24. ^ Germany sets new solar power record, institute says
  25. ^ Another Sunny Year for Solar Power
  26. ^ BSW-Solar, Statistische Zahlen der deutschen Solarstrombranche (Photovoltaik), Oct 2011
  27. ^ World Geothermal Generation in 2007
  28. ^ General information - Hydropower
  29. ^ Errore nella funzione Cite: Marcatore <ref> non valido; non è stato indicato alcun testo per il marcatore 201_report
  30. ^ General Information - Biomass
  31. ^ Bundesministeriums der Justiz in Zusammenarbeites mit der juris. August 9, 2009. Verordnung über Anforderungen an eine nachhaltige Herstellung von Biokraftstoffen (Biokraftstoff-Nachhaltigkeitsverordnung - Biokraft-NachV).
  32. ^ BioenergyWiki: Policy implementation in Germany
  33. ^ "Nuclear sunset?". The Irish Times. September 23, 2011. 
  34. ^ Renewable Energy Sources in Germany - key information 2009 at a glance
  35. ^ "Eye-watering cost of renewable revolution". World Nuclear News. 23 January 2012. Retrieved 26 January 2012. 
  36. ^ Neubacher, Alexander (27 July 2011). "The Latte Fallacy: German Switch to Renewables Likely to Be Expensive". Der Spiegel. Retrieved 22 September 2011. 
  37. ^ Nicola, Stefan (19 September 2011). "KfW to Provide 100 Billion Euros to Aid German Energy Transition". Bloomberg L.P. Retrieved 22 September 2011. 
  38. ^ EU2007.de - Historical agreement on climate protection
  39. ^ EU2007.de - Historical agreement on climate protection
  40. ^ Frondel, Manuel; Ritter, Nolan; Vance, Colin (October 2009), Economic impacts from the promotion of renewable energies: The German experience 
  41. ^ BMU response to renewed criticism of EEG by RWI: Well known and refuted a long time ago
  42. ^ http://www.reuters.com/article/2013/02/20/us-germany-energy-idUSBRE91J0AV20130220 German 'green revolution' may cost 1 trillion euros - minister
  43. ^ Merkel’s Green Shift Forces Germany to Burn More Coal
  44. ^ http://www.hurriyetdailynews.com/default.aspx?pageid=438&n=germany-to-shut-down-seven-reactors-temporarily-2011-03-15
  45. ^ http://www.instituteforenergyresearch.org/2012/08/01/generating-companies-are-shuttering-coal-plants-at-record-rates-eia-reports/ Germany is generating about 25 percent of its electricity from coal, having increased coal consumption by ~3.3 percent last year. The power gap in Germany, created by the shutdown of eight nuclear power stations, is largely being filled by lignite coal.
  46. ^ http://www.bloomberg.com/news/2012-08-19/merkel-s-green-shift-forces-germany-to-burn-more-coal-energy.html
  47. ^ online.wsj.com/article/SB10001424052702304259304576375154034042070.html
  48. ^ http://www.spiegel.de/international/germany/new-coal-fired-plants-could-be-key-to-german-energy-revolution-a-854335.html
  49. ^ http://www.forbes.com/sites/jamesconca/2012/08/31/germany-insane-or-just-plain-stupid/
  50. ^ http://www.spiegel.de/international/germany/instability-in-power-grid-comes-at-high-cost-for-german-industry-a-850419.html A survey of members of the Association of German Industrial Energy Companies (VIK) revealed that the number of short interruptions to the German electricity grid has grown by 29 percent in the past three years. Over the same time period, the number of service failures has grown 31 percent, and almost half of those failures have led to production stoppages. Damages have ranged between €10,000 and hundreds of thousands of euros, according to company information.
  51. ^ http://www.eike-klima-energie.eu/uploads/media/2012_01_09_EIKE_Germa_energy_turnaround_english.pdf “There is a threat of power outages over large areas, mainly in wintertime when the demand is high and less (power) gets delivered from abroad.”
  52. ^ http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&plugin=1&language=en&pcode=ten00114
  53. ^ http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&plugin=1&language=en&pcode=ten00114
  54. ^ http://www.spiegel.de/international/germany/instability-in-power-grid-comes-at-high-cost-for-german-industry-a-850419.html A survey of members of the Association of German Industrial Energy Companies (VIK) revealed that the number of short interruptions to the German electricity grid has grown by 29 percent in the past three years. Over the same time period, the number of service failures has grown 31 percent, and almost half of those failures have led to production stoppages. Damages have ranged between €10,000 and hundreds of thousands of euros, according to company information.
  55. ^ Böhme, Dieter (February 2013). "Entwicklung der erneuerbaren Energien in Deutschland im Jahr 2012" (PDF). Federal Ministry for Environment, Nature Conservation and Nuclear Safety. Retrieved 20 April 2013. 

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