Development of Public Solar Power Plants in Germany and Project for Implementation of Public Solar Power Plants in

Ukraine

Transformation to society free of nuclear power and carbon dioxid

Change for nuclear phaseout by 2022 and renewable energy supply by 2050 is one of the biggest infrastructur projects for the next decades.•Development of technologies and energy efficiency•Construction of electricity grids and storage capacity for electricity•New business models: from central supply to decentral, the utility companies struggle against the new way•The behaviour and attitude of electricity and heat has to be changed•Deconstruction of the nuclear power plants and looking for sites for final storage for nuclear waste•Energy import and export has to be planned with European neighboursNot only a technologial thing with new legislative initiativesSocial acceptance of a broad citizenshipImplementation needs citizenship, politics, economy and municipality

Is a highly industrialized country like Germany able to exit from risk technologies like coal and nuclear power to a low-risk, economic and free of carbon dioxid and nuclear

Check Energy TurnaroundThere is still a lot to do!

• Legal framework– RE for thermal heat, energetic restoration for buildings– Supporting mobility sector– No subsidy for new fossil power plants– Intelligent review of German Renewable Energy law– No more unfair cost allocation: Stop relief of added costs for industry– Very low prices at stock market because of low prices of certificates

• Construction and upgrade of electricity grid– Measures to reduce requirement of grid construction, i.e. decentral projects– Enabling the grid for 100% RE– Energy efficiency, technology for energy storage, more efficient power supply line and

intelligent grids (Smart Grids)– Citizens wants to understand, why power lines are needed

• Dialogue with citizens– Reduction of electrictiy consumption– Compatibility of energy turnaround and nature conservation– Early participation and communication with citizen

Electricity Tariffs for Private Households

Grid, Measure6,5ct (22,7%)

Grid, Measure6,5ct (22,7%)

Prognosis for Private Households for 2013

VAT4,6ct (16%)

License fee1,7ct (5,9%)

Offshore fee0,4ct (1,3%)

Energy tax2,1ct (7,2%)

EEG cost5,3ct (18,4%)

Production and sales8,2ct (28,6%)

Current Discussions about Energy turnaround• Unclear policy about future of German renewable

energy law causes unsecurity for investors and stops investments in RE projects

• Broad misleading discussion about unsocial effects of energy turnaround, which are initiated by lobby campaigns

• Energy turnaround as instrument for election campaign is not helpful

• Nevertheless: Awareness of majority that there is no alternative for energy turnaround

Energy turnaround – what goes well?• Increase share of renewable energy for electricity• Germany remains an exporteur for electricity• Economic value: Added value and new jobs (400.000 jobs)• Very high acceptance for energy turn around

– Acceptance for energy turnaround and nuclear phaseout is very high (75%)

– Approx. 64% of interviewed persons accepts RE projects in their neighbourhood

– Approx. 40% are willing to pay higher prices for energy

• Citizen as important promotor for energy turnaround– More then 50% of RE power is supported and in the hand of private persons

and farmers

– The number of public power plants and cooperativas has been doubled the last year

Fuel mix in Germany 2012

Renewable Energy (RE) supplied 22% of electricity production

Gas

Stone coal

Nuclear En.

Brown coal

Other

Windenergy7,4%

Biomass6,6%

Hydro En.3,4%

Photovoltaik4,5%

Renewab.Energy

Ownership of RE projectsRE-Projects in ownership of citizenshipDistribution of RE-Production 2010 (53.000MW)

PrivatesPublic plants40%

Farmers11% Other

1,5%

Companies9%

Funds/Banks11%

Developer14%

Big 4 Utility Comp. 6,5%

Other Utility Comp. 7%

• German Renewable Energy law provides security for planning

and investments

• Starting from home owners and farmers, participation was

possible for people without propery

• Technology of photovoltaik is feasible and affordable for

public households

• Even investments in wind projects are affordable because

investments are possible with small investment volumes

• Most investments are in solar, wind and biofuelprojects

• Investments are possible up to 50€

Reasons for High Public Participation

• Public participation combines responsibility of the citizens and

entrepreneurship

• Build acceptance of citizen through participation and responsibility

• Changes the proportion of power: From central energy supply to

decentralisation => “Energy in citizen’s hands”

• Local engagement as opposite pole to globalisation

• Allows a broad citizenship a financial participation

• Generates local added value

Citizens will play a very important role for energy turnaround.

They have the possibility to organize their energy supply in a

renewable way and to participate financially in this development.

This improves the acceptance of the citizenship

Public Participation

Why cooperative?

€

Producer AND consumer are identical = cooperative

A cooperative is …

• … democratic: Each member has one vote

• … flexible Easy way to become a member and to exit

• … secure: Nearly no insolvencies

• … ethical: as ecological investment

• … expandable: for more projects in the region

• … economic: with dividends

• … sustainable: for a energy production free of nuclear and carbon

• … participativepeople can create the energy turnaround from bottom up with small amounts

Success Story – Public Power Plants in Germany -> Model for Ukraine?

• Commitment of citizens is the most important impetus for the energy turnaround

• Many projects are realised as in the corporate form of cooperativa• This type of corporate represents a very democratic and realistic way

of funding. People can invest even small volumes and are producer and consumer of energy in one person.

Developement of Energy cooperativas in Germany

Project Plan

• Research on „Green Tariff“

• Analysis Risk factors – how to manage and minimize them:• Legal situation with

all contractual partners

• Type of company• Funding• Prepardness and

interest of the citizens

Dialogue and exchange between Kiew and Munich•Energy strategy of City of Kiev•Energy efficiency measures of City of Munich, EEG, legal basis,•Ukrainian Green tariff: legal and technical requirements•Development and success factors of public solar power plants in Germany•Results of feasibility study•How to organize a dialogue and exchange of citizens of Kiev and Munich

• Possible roofs in Kiev• Checking of the

appropriate legal form• Negotiation of

necessary contracts• Electric supply• Insurance• Lease contract for

roof• Funding

• Information for citizens• Construction and

connection of the plant

THANK YOU VERY MUCH!

Aims of Project• Contribution to clean, secure and economic energy supply

with photovoltaik = Energy Security• Exchange of technical know how about small-scaled

photovoltaik projects• Showing funding possibilities of RE projects with public

participation and how the projects run economically• Possiblity to push energy turnaround from bottom up• Dialogue and knowledge transfer

– Short term: First project on school, project can be embedded in curriculum

– Mid term: Development of 2 training modules for technical implementation and public participation

– Long term: Idea of training centre for renewable energy experts with City of Munich, e.g. like centre of solar energy in Munich

Is it feasible in Ukraine?

Risk Risk Management

Funding First Project (approx. 10kWp) could be feasible. If Green Tariff could not be applied, direct marketing

Technical Implementation

Already existing projects (with DENA) show feasibility of technology, but feed-in and direct marketing has to be checked

Estimation of citizen Interested and able to invest with smaller amounts? Projects allows participation and energy turnaround from bottom-up

Application Green Tariff or Direct marketing

No established process. Application has to be negociated with various authorities. Local content has to be taking into account.

Policy Requirements Green Tariff for every project, also for small

scaled photovoltaik projects Clear energy strategy of policy for renewables:

Solar, Wind and Biomass Adjustment of Green Tariff, e.g. feed-in for

photovoltaik

Political Instruments in Germany to increase RE market share

Renewable EnergyLaw: „EEG“ (preferenceIn the grid andBuyback price)

Law for thermal energy:Legal determined quotes for new buildings

Tax relief

Quotes for biomass fuel

Market support program: low interest loans

Main issues of German EEG:

• Guarantee for grid connection and feeding in of the produced energy

• Guarantee for feed-in tariff• Security of investment, because of guaranteed

tariff for 20 years• Targeted technical promotion für the industries• Cost-cutting by the degression of the

guaranteed prices• A targeted promotion creates secure and good

conditions for new business branches

Fuel mix in Germany 2011

Gas

Nuclear En.

Other

Renewable Energy 20%

Windenergy8%

Biomass6%

Hydro En.3%

Photovoltaik3%

RE supplied 20% of electricity production

Stone coal

Brown coal

Renewable Energy (RE) in Germany

Ukrainian Green TariffNecessary steps to apply Green TariffWhich type of corporate could run the projectLarge project documentationContract with utility companyConnection with the grid (expensive for smaller projects)CertifcateLicence of National Committee for allowance to sell energyRegistration for Green TariffRegistration for Wholesale Electricity Market membershipPower supply contract for direct marketing (very bureaucratic, takes very long)

Renewable Energy in Germany – Why?

• Increased energy demand worldwide• Fossil fuels: High prices, high dependency on

imports, limited resources, most important reason for a needed switch: causing climate change

• Climate change: Renewable Energy does not produce external costs, protects the climate and has therefore to be promoted

• March 2011: Fukushima - There is no alternative to RE

• June 2011: German government decides the Nuclear Phaseout

• Renewable Energy industry generates economic growth and is in the long run cheaper

Nuclear phaseout: Year 2 after FukushimaOpinion of citizenship• For more than 75% of Germans is nuclear phaseout the right

way• Approx. 40% are willing to pay higher prices for energy• Approx. 28% think, Germany will phase out completely within

the next 10 years• 50% worry about that nuclear power could be use also after

2022• Discussion about the expensive energy turnaround and impacts

for poor people is in progress

Nuclear phase out is not an energy turnaround, but one of the most important cornerstones for renewable energy supply

Renewable Energy as Job Motor

New jobs with REImportant economic effect

Germany keeps exporter of electricity German electricity balance sheet in TWh

Year Import Export Net1990 31,9 31,1 - 0,81991 30,4 31 + 0,61995 39,7 34,9 - 4,82000 45,1 42,2 - 3,12001 43,5 44,8 + 1,32002 46,2 45,5 - 0,72003 45,8 53,8 + 8,12004 44,2 51,5 + 7,32005 53,4 61,9 + 8,52006 46,1 65,9 + 19,42007 44,3 63,4 + 19,12008 40,2 62,7 + 22,52009 40,6 54,9 + 14,32010 42,1 59,1 + 16,92011 49,6 49,3 + 3,7

Development of electricity price for households

Less Nuclear Power – More renewables

Share of RE of Total Energy Use

Energy Turnaround – Contribution of Citizenshop

Importance of public power plants

1.Reasonable expectation regarding yields of public plants2.Public plants are able to do signifant investments3.Public power plants as socio-political answer regarding fair distribtion of risks and return4.Public power plants as instruments for coordination of grids5.Heat supply6.Public power plants allow to contribute for all stakeholders

Conclusion Risks / Chances

City of Kiev

Ukrainian companyOperator & ownerof the plant

Lease contract

ManufacturerInstallationInsurance

Service- and Maintanence-contract

Energy powerplant

Current supply contract

Members in Kiev

Partner-organisations

participation

participation

e.g. supervisory board

Possible Structure for Solar Power Plant in Ukraine

Members in Munich

Insurance contracts

Company in Kiev

WECF Germany

Coordination / Public relation

NECU /Ecoclub

Kiew/ Munich

Possible partners

Ecoclub City of Kiev City of Munich O.L.T. Consult KPI, University of Kiev EU UkraineForum Munich

Expectation to NECU

Was sind Barrieren, die durch gesetzliches Framework gefördert werden können?

Welche Instrumente gibt es jetzt bereits, wie können sie benutzt werden?

Als lokaler Partner Infos recherchieren, Zeitplan Ressourcen Runder Tisch

Lessons learned

xxx

Nuclear Phase out and Energy turnaround

Cornerstones for Re-orientation of energy policy: •Nuclear phase out at latest by end 2022•Rebuilding from fossil fuel to renewable•Construction and upgrading of the electricity grid•Increase of energy efficiency and a national and european energy efficiency directive•Low-risk, economic and free of carbon dioxid

Is highly industrialized country able to exit from risk technologies like coal and nuclear power

Backup

Export of German EEG RE Law:

• 19 EU countries use feed-in tariffs aiming to promote RE

• The German EEG is a model for various other countries

• Worldwide: 44 countries apply feed-in tariffs in increase the RE-share

• Great Britain promotes small RE plants with feed-in prices

Conclusion: RE is crucial for our future energy supply

• Climate protection• Reliable energy supply• Moderate energy prices• Decentralized system: Very high civil

participation• Economic growth:

• Investments• Jobs• Successful export quotes

Investments in RE Projects in Germany

RE in Germany - Development

„EEG“ promotes RE-develoment

RE in Germany – Energy Mix

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50

100

150

200

250

300

En

d-E

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arf

kW

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m²a

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HH-Strom

Lüfterstrom

Warmwasser

Heizwärme

Energy turnaround todayHas to be• Ecological, i.e. aiming the climate protection• Socially acceptable, i.e. affordable for everybody• Economically reasonable and feasible• Participative, i.e. influence and participation is possible in

decisions and financing of RE projects

The business model of energy turnaround is decentral and renewable and sustainable

Energy turnaround today• 20% of energy production is renewable• 8 of 17 nuclear power plants are switched off• EEG is an important success factor for increase of RE, because small

scaled RE-projects have been economic from the beginning• Network/grid expansion and energy storage are important topics

Public participation is a very important element of the turnaround

Interaction of participation and legal frame is THE success factor