EEG – Germany’s Renewable Energy Source Act –

7/31/2019 EEG Germanys Renewable Energy Source Act

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Presented by-Group 2

Sudeep Dhar 25NMP13Alankar Sinha 25NMP03Om Prakash 25NMP30Ajay Rawat 12EM02Sourabh Roy 12EM12


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40%

18% 20%

10%

55%

30%

70%

90%

60%

50%

40%

0%

10%

20%

30%40%

50%

60%

70%

80%90%

100%

Target %reduction in

GHG's (as

compared to

1990 levels)

share ofrenewables in

final energy

consumption

EnergyEfficiency (as

compared to

2008 levels)

cut energyconsumption in

thetransport

sector

2020

2030

2040

2050


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("Erneuerbare-Energien-Gesetz" EEG)

Launched in year 2000.

EEG is an aggressive policy by Germany to fulfill asubstantial part of its Energy Requirement byrenewables especially SPV & Wind.

Three main principles

1) Investment protection through guaranteed feed-in tariffs and connection requirement.

2) No charge to Germanys public purse :Differentfeed in tariffs for different renewable sources.

3) Innovation by falling feed-in-tariffs.


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Implementation in Three Phases.)

Focus on scaling up domestic renewable

energy generation with cost protectionthrough FIT (Feed In Tariff) policy

To provide TLC-Transparency, Longevity &certainty through customer

Reduction in the FIT rates were modest


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Rapid decline in the cost of solar PV models. Active adjustment of FIT. Linkage of FIT reduction to degree of PV installation. Reviewing of PV policy more frequently.

Reduced FIT payments. Market premium options. Evolution towards grid parity. A subsidy Cap upto 52 Gig watts SPV installation.


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Chancellor Angela Merkel's coalition announced onMay 30, 2011, that Germanys 17 nuclear powerstations will be shut down by 2022.

Huge investment in Solar PV installations due to highrate of return of 7.5%.

Due to increase in Solar PV installations the subsidyalso went up.

To recuperate the subsidy German Govt.senvironmental surcharge known as the EEGcontribution increased from 3.6 cents to 5.5 cents.

Increased surcharge led to increase in the alreadyhigh Electricity Bills for the German Consumers(German consumer pay at an average of 23 cents perKWhr)


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German Govt. made drastic cuts in FIT as detailed below:

Feed-in tariff lowered in an effort to stabilize the market


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Largest share of renewable energy subsidiesdiverted SPVs despite being the mostexpensive renewable energy technology.

SPVs are also the renewable energy least

suited to the German climate. Photovoltaic power plant operators and

homeowners with solar panels on theirrooftops are expected to pocket around9

billion ($11.3 billion) this year, yet theycontribute barely 4 percent of the country'spower supply, and that too only erratically.


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Germany ends up importing nuclear powerfrom France and the Czech Republic tocompensate for shortages in solar power.

Total Installed Capacity of SPV is 25 GW

(approx.) which contributes to a total 4% ofthe Electricity Demand whereas total installedcapacity of Nuclear Plants is 12.5 GW and itcontributes to 18% of the total Electricity

Demand. Thus, In reality, all of Germany'sphotovoltaic arrays together generate lesspower than two nuclear reactors.


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Every solar array must be backed up with a conventional powerplant as a reserve, creating an expensive double infrastructure.

Despite the drop in the price of solar modules, solar power isstill the least efficient of Germany's renewable energytechnologies, yet it's the one that receives the most funding.

Nearly 50 percent of all green energy subsides go to solar power,which yields only 20 percent of the energy generated bysubsidized technology.

For the same amount of money, wind power produces about fivetimes more energy than solar power. Hydropower generates sixtimes more, and even biomass power plants are three times aseffective as solar power.


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ThyssenKrupp, Germanys largest steelmaker,expects 5,000 job losses because of highelectricity prices.

The average household in Germany will bepaying almost double for energy next year

compared to last year. Many of Germanys poor and unemployed are

on fixed energy credits, and cant afford eitherthe increased electricity costs or the cost ofenergy-efficient appliances that could countertheir rising monthly bills. Wealthy citizens caninstall solar panels and actually make moneyon them.


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Germany is building a fleet of new coal-firedpower plants to replace their shuttered nuclearfleet, reversing their downward trend in carbonemissions and pollutants.

Germany is building about 25 coal-firedpower plants to offset the loss of nuclear andaddress Germanys admittedly unaffordablyexpensive and unreliable renewable portfolio.

Germanys present strategy will absolutely notallow them to reduce their carbon emissionsanywhere near their goal of 40% by 2020.


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Thank You

Documents

EEG – Germany’s Renewable Energy Source Act –