ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC14 151. GERMAN ENERGY TRANSITION – ENERGIEWENDE
instruments which are intended to support Energiewende im
plementation. The integration of national electricity markets
ence of EW in Germany’s neighbour countries.
This study follows the relation between the energy transition
and basic instruments. We also show how EW has changed the
German energy sector. In the second chapter we focus on the
impact of the development of renewable sources on the opera
tion of the liberalized regional electricity market. Chapter 3 in
troduces the construction of the common EU electricity market
and the connection mechanisms of the individual national mar
kets. In chapter 4 we discuss the possible future evolution of the
electricity market in relation to the degree of renewable sources
development. Chapter 5 explores Czech energy strategy and its
compatibility with the changes on the regional market brought
interests and instruments of this policy to the EU level.
1.
GERMAN ENERGY TRANSITION –
ENERGIEWENDE
This chapter provides the detailed information needed to un
derstand the energy transformation in Germany. Energiewende
(EW)1
is not simply an evolutionary change which partially im
reconstruction of a modern industrial country’s energy sector
which is incomparable in Europe.
Energiewende is also an important test case for countries in
side and outside of the European Union. The success of this
ure of Energiewende would strengthen the persisting skepticism
and nuclear resources with renewable technologies. A debate on
Energiewende can be seen in the meeting of the World Energy
sibility of extending EW outside of Germany. One third of the
gest problem and the abandonment of the nuclear power system
1
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC16 171. GERMAN ENERGY TRANSITION – ENERGIEWENDE
was thought to be too fast. The most important output of the
impacts of EW on the energy sector of the Federal Republic of
damental to the continuation of EW.
1.1 Origins and development of Energiewende
interconnected and mutually reinforcing in German politics.
Nuclear energy was an important element in the building of
cient amount of safe (in terms of fuel import) and cheap energy.
German companies were skeptical of the investments needed.
Thus the government began to subsidize nuclear development.
and by 1972 they had added almost 6.7 billion marks more. This
the country on the necessity for nuclear power; these resources
were seen as the key economic element in both energy security
and the reliability of the power supply.
The situation began to change at the end of the 1960s with
the formation of the political movement referred to as the Ex
sition). This movement consisted of leftist students who were
disappointed by the persistence of the great coalition of the SPD
topics. Environmental issues gradually permeated into their
energy. These issues then began to be adopted by both govern
The planned nuclear power plant in the town of Wahl near
the border with France played an interesting role in the forma
of organized protests by students from nearby Freiburg. Lo
to a withdrawal of the construction plan in 1983. In addition to
of nuclear energy was progressively disrupted. The accident at
cult negotiations over the nuclear waste depository in Gorleben
2
had a dramatic impact on the situation in Germany. Surveys of
2
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC18 191. GERMAN ENERGY TRANSITION – ENERGIEWENDE
public opinion carried out during the following weeks showed
the future of nuclear technology.
the nuclear industry is also interesting. From the very begin
for all of the possible environmental and climatic movements in
German society.
mental consciousness raised the issue of renewable energy
1973/1974 and 19793
sidy program was launched in the amount of 10 million marks.
tem of subsidies was introduced which provided investors with
25% of the costs of solar panels and heat pumps. By the end
budget into RES.
The 1980s and ‘90s saw a period of a growing pressure to deal
tional commitments for the reduction of carbon dioxide emis
sions. It is interesting that the strongly environmentally active
3
not immediate. Renewables are today used primarily as sources of electric
draw attention to the general problem of society’s dependence on limited
and imported fossil fuels and in that way emphasized the need for RES.
distrust of nuclear energy and the intensive effort made in the
development of renewables.
the Supply of Electricity from Renewable Energy Sources into
and energy companies4
had to pay producers a certain mini
mum purchase price which was derived from the market price
of the government coalition (with the dominant SPD). Their
programme was actually based to a great extent on radical
ing SPD resulted in the acceptance of a compromise road map
which determined both the rules and schedule of Germany’s
gradual withdrawal from the atom. The road map was intro
duced in 2000 and adopted in 2002. It contained the following
to 32 years; the amount of energy the nuclear plants were al
Parallel activities were carried out which focused on strength
The problem was that the amount of aid was derived from the
market price of electricity which was falling in relation to the
German liberalization. Therefore the Act on Granting Priority to
RES technologies was introduced.
4
the transmission and distribution grid operators was yet not applied. In
most cases it was one and the same company.
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC20 211. GERMAN ENERGY TRANSITION – ENERGIEWENDE
The arrival of Angela Merkel’s great coalition in 2005 (CDU/
CSU and SPD) brought other changes to the German energy
were typical for the Chancellor. The pressure for more RES in
political party actors supported the German climate goals and
environmental policy. The camp of proponents for nuclear en
ergy practically ceased to exist. Parties supported either a faster
the use of nuclear energy as a transitive source on the road to
ward a system based solely on RES.
The key concept paper of Chancellor Merkel’s government
There were still several important shifts to come for the nu
was amended. Production limits for the amount of electricity
German public and the political elites in their resistance to nu
clear technology and the controversial decision was negated. In
and the seven oldest nuclear power plants were shut down. In
plants by 2022.
1.2 Goals of Energiewende
Energiekonzept. It was later amended with the request to aban
don nuclear energy by 2022.
Tab. 1: The Principal EW Targets
2020 2030 2040 2050
Greenhouse gas
emissions (compared
to 1990)
Primary energy
consumption
(compared to 2008)
– –
Electricity demand
(compared to 2008)
– –
Residential sector
heat consumption
– – –
RES share of
electricity
consumption
energy consumption
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC22 231. GERMAN ENERGY TRANSITION – ENERGIEWENDE
of the broader ideological intentions of Energiewende. As laid
energy supply. This shows that EW is not focused merely on cli
mate protection. The document states that “…the world’s rising
demand for energy will lead in the long term to a pronounced
increase in energy prices. Our country’s dependence on energy
imports would also continue to increase…”.
liable (in the terms of independence from other producer coun
tries) and affordable supply (based on the assumptions that
fossil fuel prices will continue to rise and that RES prices will
continue to fall thanks to technological innovation).
“…will reinforce the leading position of German companies in
was even established in order to support the industry abroad.
The search for new opportunities for the German industry
is also linked to the general desire for sustainable economic
vancement and therefore economic growth as well. Unlike many
of some natural resources. In the words of Norbert Röttgen
ergy concerns were the main triggers of Energiewende. There
also outlined in the document which may have played an impor
1.3 Regulatory environment of Energiewende
which greatly exceeds the boundaries of the national energy
and regulations used in its implementation. Although the as
well summarized in a BMWi study.5
In the following section we
introduce the basic pillar of the policy – the Act on Granting
The EEG was adopted in 2000 and its goal was to cover the
costs of development of selected technologies. The document
6
a renewable energy producer could directly trade the electricity
and receive a bonus which was calculated in advance (system of
5
6
that the responsible authority (regulator) derives the basic price per kWh by
dividing the costs of the selected technology by the number of kWhs expect
added (usually in units per cent). The guaranteed prices for the new sources
cording to the varying costs of the given technology.
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC24 251. GERMAN ENERGY TRANSITION – ENERGIEWENDE
to preferentially purchase electricity from RES.
adopted. The reform was predominantly motivated by the
tures needed to subsidize RES. The RES subsidies and other
related costs gradually increased the price of electricity for
the government was compelled to respond. The second mo
tive for reform was the desire to bring more renewables to
This was because the producers of these sources did not need
were associated with the less predictable production of alter
native sources of energy. The reform was intended to prompt
RES electricity producers to consider these market signals more
seriously. The third reason for the reform was the rising de
mand placed on a grid which was historically constructed for
operation based primarily on traditional (dispatchable) sources.
Decentralized RES began to require large investments into the
increased both the cost of network regulation and the cost of
maintaining the source balance disrupted by the multiplying
imbalances.
The reform entered into force on 1 August 2014 and the fol
remained set at 40–45% of RES in gross electricity consump
to stabilize the pace of construction that would be necessary
desired capacities of the new facilities for each year and each
source were established. In the event of over or underproduc
which sends a positive signal to investors. This was intended
growth in the RES share of the energy mix.
Tab. 2: Projected capacity of proposed RES facilities (for
comparison, the total installed capacity in 2014 is in brackets)
plants
The trend to support less expensive technologies (PVE and
onshore farms) at the expense of the more costly technologies
(offshore wind farms) is obvious here.
of small scale production facilities7
) were eliminated and re
and technical conditions permit. Market price is not impor
tant for them; these producers also want to sell when there is
a surplus of electricity.
7
installed capacity of 100 kW that were put into operation after 31 December
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC26 271. GERMAN ENERGY TRANSITION – ENERGIEWENDE
for electricity they sold on the market themselves. Potential
prices8
(periods of relative shortage) under the assumption
that producers will absorb the difference in price between
the contracted amount of electricity and the actual supplied
electricity. The expectation is that producers will attempt to
better manage production and also utilize more short term
energy system as a whole then experiences more stability and
9
3) The cancellation of FiT for the new sources is only one part of
duced auctions as a new mechanism for determining the RES
compliance with the new EU strategy.10
rooftop) solar power stations. This process is regulated by
the Ordinance for Competitive Bidding for Financial Support
for 400 MW in 2016 and for 300 MW in 2017. Individual bids
8
EEG reform also directly deals with the problem of the negative prices of
commercial zone is negative on the spot market of EPEX Spot SE in Paris
9
Variable in the terms of substantial dependence on the weather cycles. This
10
The Guidelines on State Aid for Environmental Protection and Energy
2014–2020 lay down the new framework rules for the RES subsidy across
should be determined using the auctions.
can vary between 10kW and 10MW. The use of agricultural
port. The second model was applied to the second auction.
The amount of aid was uniform and was determined by the
experience from these auctions should serve as the basis for
determining the support structure for all RES. As previously
in 2017.
4) The redistribution of the costs of the RES subsidies has been
controversial for some time. The substantial portion of these
costs is borne by households. Through the Special Equaliza
imately €5.1 billion. The resulting relatively low electricity
have been discussions regarding the unfairness of the state
aid. The exemption also raises the kWh price by 1.35 cents
launched an investigation into the public aid of the exempt
companies.
cantly threatened by electricity prices and which consume
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC28 291. GERMAN ENERGY TRANSITION – ENERGIEWENDE
giving the companies time to adapt to the EEG reform. (Lang
crease was especially seen in the railway sector (123 applica
tions for fee reduction). Total company savings were expected
to be approximately €5.1 billion.
5) The rules governing the use of RES electricity consumption
by the producers for their own needs were also tightened.
ments. RES remain favorable because the subsidy raises the
subsidy is dependent on the date of installation and is gradu
duction of technologies. Grid operators have to pay the EEG
fee for the renewable electricity they receive and they are ob
ligated to connect the RES sources to the grid. The burden of
The 2014 German Renewable Energy Sources Act revision –
sion of the EEG should be carried out in 2016. It will address the
preparation of the above described auction system.
1.4 Energiewende actors and attitudes
regarding the transformation
on the shape and direction of the entire process. The following
1.4.1 Political parties
The basic features of the energy policy are determined at the
ties meet and these we are now going to describe.
CDU/CSU
a wide consensus in Germany regarding the necessity for nu
clear energy. The positions of all the established political parties
when the unity of public opinion regarding this issue started to
The conservative CDU/CSU were among the strongest sup
try remained skeptical of the vision of the strengthening envi
ronmental circles who saw the future of energy in renewable
ment halved the expenditures for RES as a part of austerity
The means for RES development were again increased af
CDU/CSU and FDP established the Federal Ministry for the
Previously dispersed competences were brought together under
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC30 311. GERMAN ENERGY TRANSITION – ENERGIEWENDE
did not question the necessity for nuclear energy.11
While in the 1990s the Christian Democrats’ underlying be
“…serious threat of climate change resulting from the green
conservative deputies began to work with the Greens on a new
legislative tool to support RES. This was partially due to the in
was the aforementioned 1991 Act on the Supply of Electricity
The support of RES became a unifying element in the poli
nuclear energy issue.
The elections resulted in a government of the SPD and the
Greens which focused its energy policy on EEG law and plans
to phase out nuclear power plants by 2022. The CDU/CSU and
diverted the RES support from the principles of market econ
omy which were preferred by these parties.
its tools be improved. In spite of the fact that the conservatives
subsequently created a coalition with the SPD who supported
remained untouched. Chancellor Merkel focused on the area
11
A certain concession to public opinion was made when the government de
cided not to build new nuclear power plants until the opinion of the public
hands of the conservatives to change the nuclear policy. Chan
cellor
into the RES age. It was precisely the development of the al
ternative sources which the government had supported in the
Energiekonzept.
port for nuclear energy dropped to 20%. The government came
Public opinion on this issue began to impact the popularity of
CDU/CSU. One survey (successfully) predicted that the third
12
in the upcoming elections. (Beveridge &
and later restored the red/green coalition plan to disconnect
the rest of the facilities from the network by 2022. (Beveridge &
It is questionable to what extent the Christian Democrats
was probably made only in the face of public opinion. Accord
12
There were several reasons for the decline of the CDU in the regional elec
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC32 331. GERMAN ENERGY TRANSITION – ENERGIEWENDE
because of the social climate13
we cannot expect a change in the
occurs.
Thus a political and social consensus regarding the new en
ergy system was established. There did remain certain differ
for example the role of industry and the way Energiewende is
vaguely worded platform for the energy sector during the 2013
federal elections. The plan mentioned the integration of RES
electricity into the domestic market and the creation of a com
unclear. The reason for this was most probably the intention to
leave an opening for all potential coalition partners. (Kemfert
to reach a common solution in spite of the fact that the conserv
the SPD is closer to the Greens.
FDP
tionally supplements one of the main parties (CDU/CSU and
out and RES development have evolved in relative accordance
FDP has tried to keep RES subsidies within market boundaries.
13
also support the withdrawal from the atom and its replacement by RES.
tions. This resulted in a German political consensus on the am
integration of RES into the market and for certain measures14
which align with the interests of the traditional centralized
situation.
The Greens
peace movement played an important role in the process of
party formation. The party got into parliament as early as 1983.
down of all nuclear power plants in Germany. RES development
tion of Energiewende.
The German Greens became one of the most successful green
parties in the world. This can be partially explained by the grow
energy policy was in collaboration with some representatives
14
E.g. advocating for a European quota model instead of the national EEG or
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC34 351. GERMAN ENERGY TRANSITION – ENERGIEWENDE
of the CDU/CSU on the draft law for support of RES (StrEG).
appeared as a potential coalition partner in the government with
the SPD. The Greens conditioned their participation in the gov
plants. The resulting compromise plan was a success for the
the German energy policy and de facto initiated the present
Energiewende.
The Greens sharply criticized the temporary reversal of the
they organized industrial protest actions with tens of thousands
selves as the advocates for the current shape of Energiewende.
They advocated for the establishment of the special Federal
Ministry for Energy and Environmental Affairs and called for
the intermediate steps which would make the transformation
SPD
half of the 1970s when public opinion on nuclear energy started
A change in party attitude was brought about by the Cherno
down of the nuclear power plants. The postponement to 2022
The SPD also participated in the climatic initiatives of Angela
in the second coalition government.
The Social Democrats’ energy programme in the latest federal
elections was close to that of the Greens. Despite the party’s his
egorical advocate of the transition to an energy system in which
RES plays a primary role. The SPD approved of the current
management through the establishment of the Federal Ministry
electricity tax reduction and the adoption of legislation regulat
Within the framework of the great coalition that resulted
reducing the transformation costs for consumers.
Die Linke
sive implementation of Energiewende. Unlike the SPD and
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC36 371. GERMAN ENERGY TRANSITION – ENERGIEWENDE
electricity producers and the transmission grid. (Kemfert &
1.4.2 Competence structure and its risks
ture of Energiewende and the risks posed by that structure.
The most important actor in the practical implementation of
Energiewende is the Federal Ministry for Economic Affairs and
The ministry was established in 2013 and was transformed from
the former Federal Ministry of Economics and Technology. It con
institutions.
The structure of Energiewende management suffers from cer
tain problems. As was seen in the election platforms of the last
the intersection of the competences at the ministerial level. This
problematic areas of EW management. We outline three of them
which we consider to be the most important.
are therefore able to limit the federal government in the im
the Federal Council (Bundesrat) which is comprised of the rep
resentatives of the federal states and which is similar to the
Upper Chamber of Parliament in the other countries. The rep
resentatives are able to restrict the maneuvering area of the
political parties in power at the state level than at the federal
in the process of the expansion of the new transmission grid.
This expansion often stops on the border of the federal states
for a great part of the approval procedures for the extension
,
Germany takes steps to improve and facilitate this process. Nev
ertheless there is a persistent failure to construct the network
The federal states are able to act not only against the federal
government but also against each other. The second point of
friction in Energiewende in regard to the German federal organ
ment of large RES installations. While southern states want to
the northern part of Germany is lobbying for a larger area to
exploit its wind potential. If the requirements of both parties
ties would be built. But Germany already took steps to overcome
this obstacle when in 2013 the federal states agreed on more
cooperation and on moving certain competences to the federal
administration which implements it changes every few years.
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC38 391. GERMAN ENERGY TRANSITION – ENERGIEWENDE
the future management of the governmental institution as an
is necessary to add that as long as Energiewende is supported
the
or reverse the transformation is not probable. Potential devia
staff does not change according to the electoral cycle.
mon European energy policy on RES support could be based on
the least common denominator of member state interests and
therefore could endanger the more ambitious German Energie
wende. This may be one of the reasons why Germany refuses the
harmonization of the support schemes (more in the subchap
ter 6.2.2)
1.4.3 Private actors
participate in the planning process and implementation of the
p. 2) sees the cause of Energiewende “in the success of an in
the environment as well as to the economy”.
As is clear from the data in the chapter 1.7, the overwhelm
that not everyone in Germany agrees with the transformation.
but rather with those who at least partially disrupt the social
consensus.
It should be noted that these are “opponents” in a very spe
Most of the production facilities in the country are owned by
The sudden decision to quickly leave the atom after the Fuku
the companies actually counted on prolonging the lifetime of
constitutional court. At the same time they also approached the
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC40 411. GERMAN ENERGY TRANSITION – ENERGIEWENDE
received compensation from the German state in the amount of
€380 million for shutting down the power plants Unterwesser
and Isar 1. This was followed by RWE’s compensation claim of
Fig. 1: Owners of RES capacities in 2012
Source: Destatis, 2014
does not apply to RES (see the graph above). This sector was
practically ignored by the large companies as late as 2011. The
viduals. On one hand this fragmented ownership structure may
cantly increases the general public’s awareness of these technol
typical for the local opposition.
tional energy industry caused their initial aversion to the whole
cause of internal conviction or under pressure from the chang
nies; one still holds conventional power plants while the other
focuses on renewables and the new services and products re
The four transmission system operators (TSOs) can also be
placed into the camp of occasional transformation critics. En
ergiewende requires these operators to extensively extend their
networks and the complexity of their operations is increas
The third group of EW critics is a section of the industrial sec
tor. The sector is divided according to its exposure to electricity
tain an exemption from the EEG surcharge. Both factions have
their own associations and lobbyists and are attached to var
ployers’ associations of the metal and electrical industries”
one example.
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC42 431. GERMAN ENERGY TRANSITION – ENERGIEWENDE
opposition; parts of the CDU/CSU and a very small part of the
SPD also tend to regard Energiewende in this way. (Kemfert &
The initiatives by local opposition should not be left off of the list
of transformation opponents. There are tens if not hundreds of
this way they indirectly support the interests of the previously
1.5 Technical indicators
shape of the power sector. We are interested in the energy mix
the end we deal with some indicators of the volume of green
and network stability.
mation can provide us with a general idea about the situation in
Germany.
percent of the total installed capacity.
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC44 451. GERMAN ENERGY TRANSITION – ENERGIEWENDE
power sources remain practically unchanged in Germany due to
the total exhaustion of potential sites. The share of biomass has
(TWh, preliminary data)
The graph showing electricity production contrasts with the
caused by the utilization of the particular sources; while the
on location.
About one quarter of the production is from renewable
sources. Practically the same amount of electricity is supplied
from brown coal power plants. Although it is clear from the pre
vious graphs that the total installed capacity of lignite is smaller
lignite) still provide the bulk of electricity produced in Germany.
Fig. 5: Electricity production from RES in 2014
(TWh, preliminary data, rounded)
tion of a particular RES. It is distributed more equally than it
may appear based on the installed capacities. The different ca
tricity produced with the potentially produced amount when
nature. Therefore we examine the individual sources in more
detail in the following chapters. At the same time we will try to
more accurately describe the development trends over time.
1.5.1 Renewable energy sources
Renewable energy sources are the core of Energiewende. As
sil fuels to a large extent and thereby reduce greenhouse gas
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC46 471. GERMAN ENERGY TRANSITION – ENERGIEWENDE
high added value industrial products.
incentive program. The support programs for transportation
and the development of electromobility (such as the National
Electromobility Development Plan) are also worth mentioning.
by the EU directive 2009/28/EC “On the Promotion of the Use
of Energy from Renewable Sources”. It requires Germany to
reach an 18% share of RES in gross energy consumption by
electricity consumption (the current estimated value for 2014
the RES reached the highest share of consumption on the night
of 11 May 2014 when it accounted for 80% of total demand. (The
fastest pace of growth in RES was seen in photovoltaic pan
els (up by 11 GW between 2011–2013) and wind energy (up by
5.6 GW between 2011–2013). This was due to the amount of
depletion of the water sources. Less frequently discussed is the
ability and stability of production.
The construction of photovoltaic and wind power plants cul
decreased to less than half of what it had been the previous
was a result of the purchase price reduction and of the more
stringent restrictions on connecting photovoltaics to the grid.
Germany also has one of the highest shares of wind power
investments in both onshore and offshore farms increased by
1.5.2 Conventional sources
hard coal (from 117 TWh in 2010 to 121.7 TWh in 2013) and
lignite (from 145.9 TWh in 2010 to 160.9 TWh in 2013) in the
Fig. 6: Development of renewables-based electricity generation
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC48 491. GERMAN ENERGY TRANSITION – ENERGIEWENDE
it is evident that the decrease in nuclear production is more than
compensated for by the production of the renewables. This ap
drop in RES production is actually augmented by an increase in
coal remains important. The currently low coal prices on the
European market thus result in the cheap electricity produced in
German export of the electricity.
The share of nuclear energy in the consumption of electricity
decreased in 2010–2013 from 10.8% to 7.7%. The remainder
is not expected.
thermal power stations were under construction with an ex
capacity will be shut down by 2018. (The Regulatory Assistance
gross electricity consumption by 10% by 2020 and by 25% by
2050. These goals are supported at the EU level by the Energy
has stabilized during the last decade (for energy consumption
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC50 511. GERMAN ENERGY TRANSITION – ENERGIEWENDE
cant improvement. Germany is a large and highly industrialized
consumption is unique in comparison with similar states. At
consumption are not a result of the economic crisis; the German
GDP is growing and the economy is one of the best in Europe.
The savings are clearly due to the active effort of the society and
not a consequence of external factors.
1.5.4 Import and export of electricity
Germany has long been distinctive among European electricity
production to the total trade balance. This has been disrupted by
net export has continued to show steady growth over the last
few years.
The graph summarizes the trade balance between the Czech
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC52 531. GERMAN ENERGY TRANSITION – ENERGIEWENDE
cantly weakened in recent years.
Nevertheless both of the graphs above work only with the
15
The graph below summarizes the
total balance of Germany (purple curve) and its position in rela
1.5.5 Greenhouse gas emissions
The volume of greenhouse gases produced in Germany is cur
rently stagnate or shows only slight growth. The biggest green
a decrease in emissions.
15
do not have to necessarily correspond with the contractual ones. In Germa
(in millions of tons of CO2
Equivalent)
1.5.6 Grid stability and security of supply
the stability of the transmission grid. Nevertheless the available
data show that the German network is dealing with this issue
The extent of RES development in Germany is currently pos
sible because of the traditionally high endurance of a German
grid which was constructed to have very high capacity reserves.
The grid is therefore able to incorporate a tens of per cents share
than 10 MW capacity) are connected to the generally highly sta
ble German distribution network (up to 110 kV). The SAIDI
Index (System Average Interruption Duration Index) indicates
the system average interruption duration of an electricity supply
1100
1050
1000
950
900
850
800
2014(estimate)
2013
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2000
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC54 551. GERMAN ENERGY TRANSITION – ENERGIEWENDE
and is an important indicator of distribution grid reliability. In
The German Bundesnetzagentur notes that Energiewende and
the related decentralization of electricity production have had
When electricity production from RES exceeds the capacity
tricity produced even when applying the balance measures. The
excess electricity is transformed to a higher voltage (220 or 380
kV) and fed into the transmission network where it becomes the
TSO may connect the reserve output capacities which provide
the network with the reserve energy. This can be both positive
(supplied in the case of shortage) and negative (reduced in the
case of surplus).
the amount of contracted reserve capacity16
and the total con
activations there are and the less energy is contracted and used
is because market participants comply with their commitments
serve capacity is necessary to maintain readiness and fewer ex
penses are necessary for network operation.
17
Fig. 15: Frequency of use of minute reserve
(number of dispatch instructions)
16
needed in a given period and contract the reserve capacity suppliers accord
ingly. These services (reserve capacity available) are added into the costs of
the network operator and therefore are passed on to the end consumer. The
viders is then payed for in arrears to the originator of the deviation.
17
The reserve capacity is divided according to the source of the primary con
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC56 571. GERMAN ENERGY TRANSITION – ENERGIEWENDE
The number of minute reserve activations does not follow
the years 2008 and 2009. This drop can be explained by the
for grid control cooperation between all four German TSOs was
– Sharing of the secondary and minute reserve capacities for
all of Germany
– Creation of a common German market with the secondary
and minute reserves
– Compensation for the imbalances between the particular
control areas and for the connection of the reserve capacity
duration and introduced the opportunity for a single investment
ing tool.18
18
Instead of failing to produce/consume and subsequently to pay a deviation
fee the missing/excess electricity is purchased/sold on the short term mar
market on 9 December 2014. The deliveries for such a short in
sources.
tracted and total reserve capacity consumed. Whereas the con
cent years the amount of the contracted minute reserve has been
implementation of RES in electricity production.
Fig. 16: Contracted secondary reserve, in MW
duces the need for secondary control and reserve.
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC58 591. GERMAN ENERGY TRANSITION – ENERGIEWENDE
Fig. 18: Average balancing energy used, in MWh
The volatility also goes hand in hand with reserve capacity
consumption used for network stabilization during periods of
ferent from those in the 2009–2010 period.
values of the consumed reserve capacity decrease despite the
the total consumed regulation energy in Germany decreased by
increase in the production of these sources from 45 TWh to
83 TWh (84%).
Tab. 3: Non-dispatchable RES vs reserve capacity consumed
2009 2013 Balance
36
The consequences for EW are obvious. The robust network
and good market organization help Germany to manage the
implementation of the renewable sources in tens of per cent
ments into the storage capacities but also while maintaining
a reduced reserve capacity demand. A no less important trend is
the increasing volatility of the minute reserve which will further
complicate usage prediction and therefore will also increase the
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC60 611. GERMAN ENERGY TRANSITION – ENERGIEWENDE
1.6 Financial indicators
The German government estimates its total costs at €550 bil
extension increase not only because of the RES subsidy and
increase of more than 305 million over 2011. The estimate for
Whereas the costs of Energiewende are clear and immediate
the ability and willingness of the German public to continue
with the implementation of the whole policy at the present pace.
ity on the wholesale and retail markets and the RES subsidy
calculation.
1.6.1 Electricity Prices
A detailed analysis of wholesale prices reveals two basic pieces
many is among the lowest in Europe. (See graph below.)
needed here.
ities on the European and German markets. This is a result of
of electricity demand. The second factor is the falling price of
coal caused by its replacement with shale gas in the USA.
Yet this reduction in the wholesale price of electricity does
steadily rise. The reason for this is the increase in the regulated
taxes and the costs of related services (e.g. grid services).
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC62 631. GERMAN ENERGY TRANSITION – ENERGIEWENDE
holds is also evident. This is caused by the German government’s
strategy to distribute the costs of the RES subsidy unevenly in
order to alleviate the burden on corporations.
Fig. 21: Electricity prices for industrial and corporate consumers, Even companies do not bear the burden evenly. Prices are
of the EEG fee.
esting paradox. It combines one of the lowest wholesale prices
of electricity in the EU with one of the highest prices for the
consumer (the two graphs below show comparisons with the
rest of the EU). The difference is then used mainly to cover
ically. This is possible thanks to the willingness of households
sive companies are provided with the RES fee relief and there
fore their competitiveness on foreign markets is only partially
hindered.
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC64 651. GERMAN ENERGY TRANSITION – ENERGIEWENDE
nancial support for RES. It is a crucial tool for the development
both praise and criticism. Therefore we must analyze the entire
policy in more detail.
Germany has subsidized RES through the Act on the Sup
ply of Electricity from Renewable Energy Sources into the
this act was replaced by the previously mentioned EEG.
schemes.
Fig. 25: Electricity generation from renewable energy sources with
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC66 671. GERMAN ENERGY TRANSITION – ENERGIEWENDE
the option of market premiums in which the producer sells the
was already prevalent and accounted for 54% of all electricity
included in the EEG.
2000 2002 2004 2006 2008 2010 2012 2013
Electricitygeneration
– –
– – 0 0 25
– – – – –
162
– – – – –
2000 2002 2004 2006 2008 2010 2012 2013
Compensation
512
– – 156 52
55 232
– – 0 0 0.003 0.006 0.006
515
– – – – – 26 152
15
Total
– – – – – –
11.3 16.3
S
it had already grown to €22 billion. The reason for this was the
dramatic growth of the installed capacity and therefore also the
growth in both production and subsidy.
The aggregate EEG surcharge for 2015 is calculated at €21.8
for 2015. This is the result of legislative reforms (mainly the
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC68 691. GERMAN ENERGY TRANSITION – ENERGIEWENDE
EEG) and it is a strong argument in favour of the sustainability
of Energiewende. This is shown in more detail in the graph be
low where the blue curve shows the aggregate EEG surcharge
and the orange curve shows EEG surcharge in cents per kWh.
EEG payments should not be misunderstood as the costs of
the EEG; the proceeds from selling electricity on the electricity
1.7 Public support for Energiewende
Energiewende is also unique for one more reason. In the Euro
rate sector.
Public opinion surveys show that the population consid
The public opinion surveys generally show a high degree of
dividual aspects of Energiewende but consider the concept as
acceptance of EW by the general public to be the high electricity
prices. But it should be noted that because of the relatively high
at a tolerable level (approximately 2.5% of the household in
come). This means that Germans pay the same now as they did
during the 1980s (although in the meantime these costs have
indicate.
consumer price of electricity is based on the different tariff lev
ENERGIEWENDE: CURRENT STATE, FUTURE DEVELOPMENT AND THE CONSEQUENCES FOR THE CZECH REPUBLIC70 712. ECONOMY AND INFLUENCE OF RENEWABLE SOURCES ON ELECTRICITY PRODUCTION AND TRADE
according the supplier.19
the German price is twice as much as the Czech price. Never
three times higher than those in the Czech Republic.20
From
cheaper than Czech electricity prices.
radically change Energiewende will arise.
19
20
For more details regarding the incomes in the individual countries see (Eu
2.
ECONOMY AND INFLUENCE
OF RENEWABLE SOURCES
ON ELECTRICITY PRODUCTION
AND TRADE
The increasing share of renewables in electricity production is
the most important change brought about by Energiewende in
the German energy sector. Renewable sources differ from con
ventional sources (fossil fuels and nuclear energy) in several
ways.
conventional sources. Wind and solar energy production is de
termined by current weather conditions. These sources are vol
atile (e.g. the difference in production of photovoltaic plants
during night and day) and this volatility brings a certain degree
of uncertainty into the planning process (due to the accuracy of
weather forecast models). The second characteristic feature is
the nature of its operating economy. There are no fuel require
ments for renewable sources (with the exception of biomass)
nancial support. It would be a mistake to consider RES merely
as another diversifying source in the German energy mix; RES
and traded.
Other goals and instruments of EW do not have such great
only limited impacts on the German energy system.