Energy Transition – Energiewende - in Germany

The German Energiewende Integrated policy framework which combines four objectives: - Combat climate change - Avoid nuclear risks - Improve energy security - Guarantee competiveness and growth (Source: Agora Energiewende – 12 insights on Germany‘s Energiewende)

Wind and Solar -The cheapest renewable energy sources -Weather dependent -Variable -Only capital expenditure

Energiewende Wind energy and solar photovoltaics form the backbone of the German Energiewende. - Relatively high capital costs, but no operating costs - Weather dependency, production electricity fluctuates rapidly - Flexibility - the new paradigm of the German power system - These characteristics are fundamentally different from those of coal and natural gas; they profoundly alter the energy system and energy market

Challenge: Balance demand and supply - Baseload power plants disappear altogether - Natural gas and coal operate only part time - Operation of combined heat-and-power and biomass plants according to electricity demand - Balance successful using national and (not yet) European grids, they are cheaper than storage systems - Low power generation costs (2015): prices cts€ /kWh for wind energy cts€/kWh for solar PV.

Seasonal supply and demand scenarios

Renewable energies and electricity demand 2033 (source Agora website)

Solutions for flexibility challenge - Wind and PV power need to be expanded in tandem since they have mutually complementary features - The wind blows when the sun is not shining and vice versa - Integrate the heat sector, offers enormous potential for increasing system flexibility

Midterm solution combined heat and power plants - in the medium term, dual-mode heating systems, capable of using either fuel or electricity will be deployed; - over the longer term, integration will occur by using a common fuel – natural gas, biogas, or power-to-gas combined

Renewable energy –sector overview 2014 by 2020 Investment in energy plants € 18.8 bn € 235 bn Share of electricity consumption 27.8% 47% Share of heat consumption 9.9% 25% Share of fuel consumption 5.4% 22% Share of final energy consumption 12.3% 28% GHG savings (CO2 eq.) 148 m t2 287 m t (source: renewable energies agency,

Renewable Energy –sector overview by Employment – nr. of jobs 371,400 min. 500,000 - Fossil fuel imports savings € 9.1 bn € 50 bn - Prevented environmental damage € 11.0 bn € 12.3 bn Source:

Long term state funding: Renewables 102 bn Euro - Hard coal 327 bn Euro - Lignite 95 bn Euro - Nuclear 219 bn Euro Renewable energy receives considerably less support than nuclear power, coal, etc. According to IEA data, annual subsidies for fossil fuels alone amounted to around 550 bn $ in 2013 – more than four times the amount for renewables. Source:

Electricity mix in Germany

Sorry, bad news, we need European help!