1. Photovoltaic arrays in German municipalities Dipl.-Ing. Markus Bauer IHK Zetis GmbH, Germany

2. Content 1. Definition and perspectives 1.1 Definition, potential 1.2 Current status 2. EU Framework 2.1 EU-Directive, targets 2.2 Key figures, capacity 3. National context: Germany 3.1Feed-in tariffs ( Renewable Energy Sources Act/EEG) 3.2Key figures (Installed capacity and energy supply, CO2 avoidance, Jobs) 3.3 Photovoltaic industry in Germany 4. Regional context 4.1Problems of the municipalities 4.2Options for action 4.3 Financing and ownership models 4.4 Advantages for the municipalities 4.5Best practices February 22th 2011 – Markus Bauer, IHK Zetis GmbH

3. How does Photovoltaic (PV) work ? ‘ photo’ = light, ‘voltaic’ = electric potential Photovoltaic systems use cells to convert solar radiation into electricity.  One or two layers of a semi-conducting material.  Sunshine > Cell creates electric field across the layers, causing electricity to flow.  The greater the intensity of the light, the greater the flow of electricity is.  It can also generate electricity on cloudy days.  The most common semi conductor material used in photovoltaic cells is silicon A photovoltaic array is a linked collection of photovoltaic modules. February 22th 2011 – Markus Bauer, IHK Zetis GmbH

4. PV Solar Electricity Potential in Europe http://re.jrc.ec.europa.eu/pvgis/apps4/pvest.php?lang=en&map=europe# February 22th 2011 – Markus Bauer, IHK Zetis GmbH

5. Current status and Perspectives PV in more than 100 countries PV is the fastest growing power-generation technology in the world. Ground-mounted or built onto the roof or into walls of a building (Building Integrated Photovoltaics (BIPV)) REN21 Renewable Energy Policy Network for the 21st Century, Renewables 2010, Global Status Report February 22th 2011 – Markus Bauer, IHK Zetis GmbH

6. Current status and Perspectives REN21 Renewable Energy Policy Network for the 21st Century, Renewables 2010, Global Status Report February 22th 2011 – Markus Bauer, IHK Zetis GmbH

7. 2. EU Policy on energy from Renewable Energy Sources February 22th 2011 – Markus Bauer, IHK Zetis GmbH

8. 2.1 Renewables Directive 2009/28/EC The Renewables Directive is a European Union directive, published 23rd April, 2009.  mandates levels of renewable energy use within the European Union  official title is 2009/28/EC  pre-agreed share of energy consumption from renewable sources for the member countries  the EU as a whole shall obtain at least 20% of total energy from Renewables by 2020. The directive amends and repeals the 2001 Directive on Electricity Production from Renewable Energy Sources. February 22th 2011 – Markus Bauer, IHK Zetis GmbH

9. National targets for the proportion of final energy consumption from renewable sources in 2020 February 22th 2011 – Markus Bauer, IHK Zetis GmbH

11. 3. German context An adequate mechanism to develop grid-connected Photovoltaic markets The European photovoltaic market has been pulled by the successful development of the German market. The revision of the Renewable Energy Sources Act (Feed-in-tariff law) in 2003 has confirmed the leadership of Germany with 80% of the European market share. It offers customers an attractive price for selling their produced electricity to the utility grid. 3.1 Feed-In Tariff - Renewable Energy Sources Act / EEG February 22th 2011 – Markus Bauer, IHK Zetis GmbH

12. Feed-In Tariff Key to success : The tariff is set at the point of connection to the grid. The level of the tariff is guaranteed for 20 years > planning security + attractive investment in solar electricity systems. The cost of the feed-in tariff is supported by all electricity users > it does not rely on State budgets The simplicity of the feed-in tariff concept and its low administrative costs > it is a highly effective and efficient tool February 22th 2011 – Markus Bauer, IHK Zetis GmbH

17. 2011 > 340,000 jobs

18. 3.3 Photovoltaic (solar energy) industry in Germany - Brief overview from the end of 2009 Number of photovoltaic companies (incl. installers and suppliers): approx. 10,000 Of which are producers of cells, modules and other components: > 200 New photovoltaic (PV) capacity installed in 2009 approx. 3,800 MWp Total PV capacity installed in Germany in 2009 approx. 9,800 MWp Growth of new capacity installed from 2009* to 2010 approx. 60 percent Industry turnover 2009 approx. 9 billion euros Supplier turnover 2009 approx. 2 billion euros Proportion of domestic value added > 65 percent Proportion of German electricity consumption 2010 / 2020*/ 2050*approx. 2%/10%/25% CO2 savings in 2009* approx. 3.5 million tonnes Number of jobs in 2004 / 2009 / 2013*/ 2020* approx.17,000/63,000/68,000/100,000 Export quota PV industry 2004 / 2009 / 2013*/ 2020* approx. 14%/47%/70%/80% Export earning (industry and suppliers) 2004 / 2009/ 2013*/ 2020* approx. 0.27/5.6/14/20 billion €

19. 4. Regional context 4.1 Problems of the municipalities Political majorities Public acceptance Municipal budgets Higher administrations / authorities > Veto Lack of competence Unclear ownership structure Time frame February 22th 2011 – Markus Bauer, IHK Zetis GmbH

20. 4.2 Options for action > direct influence: Urban land use planning and land consolidation planning / building law Construction and operation of own PV systems Solar Roof Exchange Markets/ register > indirect influence Citizens advice on technical issues and support programs Local promotion / aid Local Public Relations February 22th 2011 – Markus Bauer, IHK Zetis GmbH

21. Solar Roof Exchange Market – e.g. Berlin The state of Berlin offers rooftops of public buildings to private investors to build on these photovoltaic systems and to operate them The rent = some % of the feed-in tariff In the last years were more than 64 solar systems installed “Currently, the demand for suitable roof areas is so large that set roofs often find an interested party within a day.” Note on the homepage of the solar roof exchange Stuttgart

22. February 22th 2011 – Markus Bauer, IHK Zetis GmbH

23. 4.3 Financing and ownership models Several ways for local governments: The municipality invests and operates the facilities under its own responsibility (with equity capital or financed by debt) > municipal operating company is founded or the municipal utilities provide the work Advantages: > more competences > raising of capital - financing directly through banks > shorter time frame for realization (In-house order) > manage as a company not as a municipality February 22th 2011 – Markus Bauer, IHK Zetis GmbH

24. A contractor could build and operate the PV-array for the municipality > The contracting company takes charge of planning, construction and operation of the facility >The municipality then pays the energy from those facilities for a fixed time frame

25. Citizens’ solar plants – cooperative associations Citizens join forces to establish an operating company and finance the project through corresponding shares. The municipality can offer suitable areas for free on municipal roofs or grounds Each participant invests a contribution to establish a common solar plant Motivation: to promote the PV and to make a 20-year-well-secured investment (feed-in tariffs), ROI 4-8% Form of organization: civil law association or cooperative associations

26. Planning and operating companies take care for > planning, construction, financing and management > Community creates the legal requirements in the area of planning and permit. Professional investors (e.g. banks) buy PV projects and offer their customers the shares as a capital investment of an investment fund. >>> The municipality does not have to be financially strong to use photovoltaic arrays.<<< February 22th 2011 – Markus Bauer, IHK Zetis GmbH

27. 4.4Advantages for the municipalties Solar energy is free Produces no noise, high public acceptance Minimal maintenance required to keep the system running Modular systems can be quickly installed and easily expanded Climate protection Financial income (Feed-In Tariff, tax) Image improvement Generate local jobs New perspectives for the rural areas February 22th 2011 – Markus Bauer, IHK Zetis GmbH

28. 4.5 Best Practices February 22th 2011 – Markus Bauer, IHK Zetis GmbH

29. Fritz Walter Stadium, Kaiserslautern World's largest solar installation on a stadium roof May 2010, on roof solar power plant 1.38 MWp, 1.156 kWh/year 5.800 polycristalline LiteOn Solarmodules Annual electricity needs of about 450 households Saving 856 tons carbon dioxide Investor and operator is the Taiwanese LiteOn-Group 5 Mio. Euros Investment Installed by the local partner SOLAR ENERGIEDACH GmbH, Sembach February 22th 2011 – Markus Bauer, IHK Zetis GmbH

30. Solar Park Municipality Wörrstadt Electrical power: 5.6 MWp Current annual income: about 5.6 million kWh Location (Province): Rhineland-Palatinate 77.000 modules, First Solar (thin-film modules) module area: 55.360 m 2 Project development: juwi Holding AG, Germany Feed-in tariff: 35,49 Cent/kWh for 20 years Financing: own capital and low-interest loans Avoidance: 4,000 tons carbon dioxide / year Start of construction: end of May 2008 Putting into operation: end of December 2008 February 22th 2011 – Markus Bauer, IHK Zetis GmbH

31. Thank you for your attention. IHK Zetis GmbH Europaallee 10 67657 Kaiserslautern www.zetis.de Germany February 22th 2011 – Markus Bauer, IHK Zetis GmbH