The Energiewende - A Social Contract for the German Energy Future
1. Institute for Advanced Sustainability Studies
IASS in Potsdam
The Energiewende – A Social Contract for the German Energy Future
Dr. Petri Hakkarainen
Senior Fellow
IASS Potsdam
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
2. The German Energy Transition in a Nutshell
Along history …
The concept “Energiewende” was first coined already in 1980 (Öko-Institut)
Two main elements: exit from nuclear power, entry into renewable energies
A feed-in tariff system for renewables first introduced in 1991
Government decisions in 2000-2002: nuclear phase-out extending into the
2020s and introduction of the Renewable Energy Sources Act (EEG)
New energy concept under the current government in September 2010:
extension of nuclear operating times combined with ambitious goals for
emission reduction, share of renewables and energy efficiency
… and a recent shock
Immediate shutdown of the oldest nuclear power plants and appointment
of an Ethics Commission for a safe energy supply after the Fukushima shock
in March 2011
Final report of the Ethics Commission in May 2011, government decision on
“The Energiewende” in June 2011: nuclear exit by 2022
Other targets of the 2010 energy concept remain, e.g. share of renewables
by 2050: 60 % of energy consumed, 80 % of electricity produced
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
3. The Road to the First German Nuclear Exit
A strong anti-nuclear public sentiment for decades
Peace movement increasingly against nuclear
weapons from the late 1970s
Nuclear accidents in Three Mile Island
1979, Chernobyl 1986
Neckarwestheim 2 in 1989 – the last new nuclear
power plant to start running in Germany
The Red-Green government 1998-2005
Agreement with the industry in 2000, leading to a
change in legislation in 2002: nuclear phase-out
based on electricity amounts of an average
lifetime of 32 years per power plant
Simultaneous introduction of the Renewable
Energy Sources Act (EEG)
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
4. … and an Exit from the Exit from the Exit
Grand Coalition government of Chancellor Merkel 2005-2009
Agreement to disagree on the phase-out between the coalition partners
Black-Yellow government of Chancellor Merkel from 2009
Autumn 2010: Extension of operating times of nuclear power plants by 8 to
14 years, combined with an ambitious energy concept where nuclear power
figures as a “bridge technology” to the future
Spring 2011: the Fukushima shock, immediate shutdown of the oldest
nuclear power plants in Germany and the appointment of an Ethics
Commission for a safe energy supply
Final report of the Ethics Commission in May 2011 and amendment of the
Atomic Energy Act in the summer: an accelerated phase-out ending in 2022
Federal election in the autumn 2013
Other elements of the Energiewende hotly debated, but a very broad
consensus supporting the nuclear exit – a further nuclear U-turn not to be
expected
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
5. Geography and Timetable of the Nuclear Exit
Eight of the seventeen nuclear power
plants were permanently shut down in
2011 (marked in red)
The remaining nine power plants will be
phased out gradually
Grafenrheinfeld in 2015
Gundremmingen B in 2017
Philippsburg 2 in 2019
Grohnde, Brokdorf and
Gundremmingen C in 2021
Isar 2, Neckarwestheim 2 and Emsland
in 2022
Source for map: stepmap.de
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
6. The Energiewende as a Collective Effort
The Energiewende is more than just a nuclear exit: a complete transformation
of the energy system of a highly industrialized country
An extensive legislative package with ambitious targets for the coming decades
Greenhouse gas emissions: 2020 -40%, 2050 -80% (reference year 1990)
Renewables 2050: 60% of energy consumed, 80% of electricity produced
Consumption 2050: primary energy -50%, electricity -25 % (ref. 2008)
All three corners of the energy triangle need to be taken into account:
security of supply, competitiveness and environmental sustainability
The Ethics Commission: “the energy transition will only succeed through a
collective effort spanning all levels of politics, business and society” (in
German: “Gemeinschaftswerk”)
“The era of renewable energies and energy efficiency” - major opportunities
and challenges involved
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
7. The German Electricity Mix in 2011
Hard coal 19 %
Nuclear 18 %
Renewables 20 %
Natural gas 14 %
Heating oil, pump
Lignite 25 % storage etc. 5 %
Source: BMWi
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
8. Renewables Target: From 20/80 to 80/20 by 2050
Others combined 20 %
Renewables 80 %
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
9. Scenarios for the Future Electricity Generation
Source: BMU-DLR-IWES-IfnE (2012)
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
10. Renewable Energy Sources Act (EEG)
Feed-in tariffs existed already in the early 1990s, but the genuine success story
of the renewables began with the introduction of the EEG in 2000
Feed-in tariff system guarantees preferential grid access for renewable
electricity and a price fixed for the next 20 years
Share of renewables in the electricity mix has been tripled in ten years:
from 6,7 % in 2001 to 20 % in 2011
In the first half of 2012 renewables already accounted for 25 % of
electricity consumption – expansion is ahead of schedule
A lively debate about the future of the EEG is currently going on in Germany
Distribution of the expanding costs of the system between consumers and
industry – exemptions of the EEG surcharge (“EEG-Umlage”)
Cap of installed capacity for PV solar now set at 52 GW, tariff and
degression-rate adjustments across the board
Expansion of offshore wind: funding and accountability
How to make renewables competitive and market-compatible?
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
11. Rapid Expansion of Renewables in the Past 10 Years
Source: BMU
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
12. Towards a New Electricity Market Design
With the rising share of renewables, an energy-only market is approaching its
limits
With their marginal costs close to zero, renewables push conventional
capacities out of the merit order at the wholesale market
Increased volatility due to the fluctuating character of wind and solar power
Introduction of flexibility as a new economic value
The debate about a new market design is under way
Market integration of renewables and a reform of the EEG – when and how?
The role of the conventional power plants – capacity markets or strategic
reserves?
Aggressive campaign for a quota model to replace feed-in system
Separate solutions or convergence?
The European context: market design needs to be compatible with the internal
market of the European Union
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
13. New Requirements for the Infrastructure
The Energiewende requires a thorough
transformation of the grid infrastructure
Linking expanded wind supply in the North to
the demand in the West and the South: 3800
km of new transmission lines needed
Increasingly decentralized production also sets
new demands for the distribution grid
Introduction of smart grids and smart
meters, demand side management, storage
options, electric vehicles etc.
The building sector accounts for 40 % of total
energy consumption: a key role in improving
energy efficiency
Source: Bundesnetzagentur
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
14. Energy Prices and Public Acceptance
Source: BMU
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
15. “Future Made in Germany”?
In spite of the evident
challenges, the Energiewende holds
enormous potential for the future
Sustainability and climate
protection
Decoupling of emissions and
growth – if one of the leading
economies in the world
succeeds in this, others are
more likely to follow
A leading role in the growing
global market of energy and
environmental technologies
Job creation at home: by some estimates already over 380.000 people in Germany
working in the renewables sector
Reduced dependency of energy imports
Decentralization enhancing public participation in energy policy
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
16. Research and Development for the Energiewende
The sixth energy research program of the Federal Government
3,5 billion Euros for R&D on sustainable energy technologies in 2011-14
Funding from the federal budget and from the “Energy and Climate Fund”
Main priorities: energy efficiency, renewables, energy storage, grid
technology, fusion technology and nuclear safety
Improvements in international research cooperation
A key role of the traditional scientific research institutions of Germany
(Fraunhofer, Leibniz, Max Planck and Helmholtz)
IASS Potsdam a new actor in the field, relevant with all its research clusters
Global Contract for Sustainability
Earth, Energy and the Environment
Sustainable Interactions with the Atmosphere
Enabling Technologies for Sustainability
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
17. Institute for Advanced Sustainability Studies
Inspired by the 2007 Nobel Laureate Symposium “Global Sustainability – A Nobel
Cause” held in Potsdam
International, interdisciplinary and networked research on sustainability
More than 70 researchers, fellows and project managers from renowned research
institutions
Contacts to high-level scientific communities as well as to politics, NGOs and
media in Berlin
Ranked No 1 among the “best new think tanks, established in the last 18
months” in 2010 by University of Pennsylvania
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
18. Vision and Mission of the IASS
Vision
An independent, international research institute and think tank
Serves as knowledge hub and broker for international high-level experts from
science, politics and society
Focuses on sustainable development projects in a highly transdisciplinary
environment
Links its activities to strategic dialogue with policy makers, civil society, the
business sector and the media
Mission
• Applying a transdisciplinary approach in making outstanding contributions to
scientific progress
• Developing innovative ideas on sustainability challenges and how solutions could
best be implemented across regions and sectors in open democratic societies
• Functioning as a hub for strategic dialogue between researchers, policy
makers, businesses and society
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
19. Transdisciplinary Panel on Energy Change (TPEC)
Launched in March 2012 as part of the IASS Cluster “Global Contract for
Sustainability”, taking on the suggestions of the Ethics Commission
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
20. Transdisciplinary Panel on Energy Change (TPEC)
Main tasks
Providing independent scientific guidance of the Energiewende
Facilitating an objective discourse about the transition
Bringing together stakeholders from all sectors of society
Various formats
Public hearings
Thematic working groups (current priority topics “RES”, “CO2” and “Social”)
Workshops and own research
“TPEC Bilaterals” with neighboring countries
First annual report in 2013
A transdisciplinary team
Academic backgrounds in engineering, physics, law, history, political
science, sociology etc.
Joint work experience spans from research and science to
diplomacy, consulting and management
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
21. Contact
Dr. Petri Hakkarainen
Senior Fellow
petri.hakkarainen@iass-potsdam.de
Institute for Advanced Sustainability Studies e.V.
Berliner Straße 130
D – 14467 Potsdam
Web: www.iass-potsdam.de
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
22. Rapid Expansion of Energy Cooperatives
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012
23. Real Costs of Energy Carriers
Institute for Advanced Sustainability Studies e.V. Sitra Sustainable Economy Forum, 7 November 2012