Renewable Energies in Germany at a Glance - Focus on Geothermal Energy

1. Renewable Energies in Germany at a Glance-Focus on Geothermal Energy • János Büchner, energiewaechter GmbH • Consultant to the Initiative “renewables – made in Germany” of the German Federal Ministry of Economics and Technology (BMWi) www.renewables-made-in-germany.com

2. Content • The Initiative Renewables – Made in Germany • Political background and framework for RE development in Germany • RE Market development in Germany and economic effects • Some figures: RE and Geothermal Energy • Presentation of representatives of German companies

3. The Initiative Renewables – Made in Germany • Scheme financedand coordinated by the German FederalMinistry of Economics and Technology (BMWi) • German Government intends to • contribute to global climate protection through support of advanced RE-technologies • contribute to international knowledge exchange through conferences, fostering cooperations and joint ventures • supportGerman SMEs finding cooperation partners in foreign countries Source: Development of renewable energy sources in Germany 2011 provided by BMWi

4. The Initiative renewables – Made in Germany • Tools are • not only organized business tripsand conferences in foreign countries • but also information trips for decision makers from foreign countries to Germany (visits of research institutions, companies and pilot projects in Germany)

5. The initiativeon the Web • www.renewables-made-in-germany.com • Info on upcoming events: Business trips, trade fairs, information trips for foreign decision makers to Germany • Information on German companies • and institutions Information on actual market developments • www.renewablesb2b.com • Virtual Market Place; B2B platform

6. Political background and framework • for RE development in Germany

7. Already after Chernobyl (1986) and even before many Germans called for a phase out of nuclear energy use • Finally the Catastrophe in Fukushima led to Germany’s • energy turnaround by cabinet decision in June 2011: • Nuclear power use phase out until 2022… • …while keeping the aim to ….. • … reduce our GHG-emissions • by 40% until 2020 • by 80% until 2050 • (compared to 1990) • How to achieve that? Germany’s Energiewende (‘Energy Turnaround’) in 2011

8. Share of Renewable Energy Sources in Total Final Energy Consumption in Germany 2011 (& 2012) 2012: RES all together: 12.6% Huge potential! Source: Development of renewable energy sources in Germany 2011 provided by BMWi

9. Suitable Regions for the Use of Geothermal Energy Even the (comparably small) hydrothermal potential could supply a fivefold of the current German electricity demand (Potentialatlas Erneuerbare Energien) Source: Development of renewable energy sources in Germany 2011 provided by BMWi

10. Main Instrument to Promote REs (ELECTRICITY production) • Act on Granting Priority to Renewable Energy Sources (EEG) • Grid operators are obligedto connect RE systems to the grid and to buy the electricity from the system operators to set prices • Fixed Feed-In tariffs (FITs) for 20 years guaranteedby law for RE system operators • Tariffs vary depending onthe utilized source, e.g. biomass, PV, geothermal energy etc. • Amendmentstake place at regular intervals depending development on market development and competitiveness of technologies • Example: FITs for geothermalelectricityproduction increased in 2012. (Depending on technology up to 23, 25 or even 30 ct/kWh (e.g. petrothermal projects). FITs for Photovoltaics - in contrast - decreased • FITs financed by consumers: reallocation charge of currently 5,3 €-centper kWh consumed

11. Share of the reallocation charge in the consumer’s electricity bills now: 5,3 cents Credits: Renewable Energies Agency, Berlin

12. EEG: Increasing Share of Renewable Energy Sources for Electricity Generation in Germany, 1990-2010

13. Share of Renewables in Energy Consumption: ELECTRICITY 2012: roughly 23% 2012: 22,9% 2012: 12,6% 2012: Stagnation at 10,4% Credits: Renewable Energies Agency, Berlin

14. Renewables replace Nuclear Power Credits: Renewable Energies Agency, Berlin

15. Main Instruments to Promote REs (HEAT production) Renewable Energies Heat Act (EEWärmeG) since 2009: Minimum share of heating energy supply from REs for new buildings usually obligatory Obligations depending on the technology/ies used (e.g. biomass and heat pumps: 50%, solar thermal 15%) Market Incentive Program for Renewable Energies (Marktanreizprogramm / Federal Environment Ministry, (BMU): Financial contributions / beneficial loans for certain REs investments Loans by KfW Bankengruppe (KfW Group) - National business development bank: subsidised loans for energy-efficient housing and RES

16. Development of RES Share in Reference to Heat Production Heat supply share of REs planned to reach 14% by 2020

17. Structure of Renewable-based Heat Supply in Germany 2011

18. Near-surface Geothermal Utilities for Heat Allocation in Germany

19. Germany’s Energy Turnaround today • Currently a political debate about the costs, (election 2013 / political campaigns started) • but the EEG (Act on Granting Priority to Renewable Energy Sources) • remains major instrument to boost renewables • Current Challenges: • Research & Developmentfor energystoragesolutions (even here large geothermal potentials: heating/cooling) • Intensify energy saving and efficiency efforts • Speed-up grid expansion (major problem: transport e.g. offshore wind power from the north to highly industrialized areas in the south)

20. Public opinion: Costs of RE development regularly an issue of election campains, but generally .... Credits: Renewable Energies Agency, Berlin

21. Benefits of RE • promotion in Germany

22. Renewables in Germany: Growth of Total Employment 2010 alltogether almost 370,000 jobs / Solar 120,000 / Geothermal energy: 13,000

23. Who are the owners /investors in German RE installations? Credits: Renewable Energies Agency, Berlin

24. Many thanks for your attention andhave a fruitful event day! Contact: János Büchner, energiewaechter GmbHE-Mail: jb@energiewaechter.de