Pre Trip Webinar for Germany 13 June 2012
Helping Utilities Make Smart Solar Decisions
Pre-Trip Webinar
for the SEPA Renewable Energy Integration Fact Finding Mission to Germany
About this webinar…. • Webinar introduction to the Germany Fact Finding Mission. – Supplemental information is provided in the “In-Flight Reading” preparatory materials. – Items covered briefly here will be covered in greater detail on the mission.
• Content – Brief overview of our Fact Finding Mission – Review interesting topics and issues that make Germany a great place for our FFM right now. – Itinerary review – Brief overview of Germany and the electric and renewable energy market.
– Review open items for participants Helping Utilities Make Smart Solar Decisions
About the FFM SEPA Goals • Facilitate the sharing of information, lessons learned and best practices from a unique solar/utility market with a focus on issues and content of interest to our utility members • Provide unique learning and networking experiences that result in long-term relationships for the utilities when they return home Utility Delegates • Learn, network and enjoy this unique mission • Get to know your utility colleagues and build relationships • Ask questions and share your knowledge • Bring back lessons learned that can be of use in your utility • Share your experience and knowledge with your colleagues and staff Helping Utilities Make Smart Solar Decisions
Mission Focus • • • • • •
Renewable energy integration High penetration Meeting challenges in a dynamic market Policies Solar technology Solar & electric market trends
Helping Utilities Make Smart Solar Decisions
Participants • • • • • • • • • • • •
Bianca Barth, Research Manager, SEPA David Bates, Manager, Project Development, FPL Greg Bernosky, Manager, Renewable Energy Program, APS Tom Bialek, Chief Engineer, Smart Grid Ron Binz, Principal, Public Policy Consulting David Brown, Principal Distribution System Engineer, SMUD Darren Deffner, Director of Policy, SEPA Joel Dickinson, Senior Engineer, SRP Pat Dinkel, VP, Power Marketing, Resource Planning and Acquisition, APS Nadav Enbar, Senior Project Manager, EPRI Bob Gibson, VP, Market Intelligence, SEPA Julia Hamm, President and CEO, SEPA
• • • • • • • • • • •
Cynthia Hunt Jaehne, Education Manager, SEPA Bob Hunzinger, General Manager, Gainesville Regional Utilities Robert Kaneshiro, Operations Assistant Superintendent, Hawaii Electric Light Co. Eran Mahrer, VP, Utility Strategy, SEPA Melanie McCoy, GM, Wyandotte Municipal Services Patrick McCoy, Solar Program Planner, SMUD David Rubin, Director, Service Analysis, PG&E Mike Taylor, Director of Research, SEPA David Vance, Principal Engineer, SDG&E Jonathan Woldemariam, Director, Electric T&D Engineering, SDG&E Chris Yunker, Rates and Analysis Manager, SDG&E
Helping Utilities Make Smart Solar Decisions
5
Some interesting happenings in Germany: Issues, Ideas and Challenges or Why Germany?
Helping Utilities Make Smart Solar Decisions
6
About Germany • Size: 137,846 sq. mi (~Montana) • Population 81.5M (Berlin ~3.4M) (California: 163,696 sq mi / pop ~38M) • • • •
Government: Federal Republic Executive – Legislative – Judicial Legislative-bicameral parliament; Bundestag – lower house; Bundesrat – upper house Administrative divisions: 16 Länder (states). German economy is the 5th largest in the world (California ranks 8th)
Source: U.S. Department of State
Helping Utilities Make Smart Solar Decisions
Solar Map
U.S.: Installed PV ~1.6 GW in 2011 Germany: ~7.5 GW in 2011 Sources: Solar Resource Availability: NREL, PV Capacity Additions: SEPA
Helping Utilities Make Smart Solar Decisions
Changing Landscape • Germany 2000 –Model FIT. Solar market grows and companies benefit from strong support. • 2008 – 1st SEPA FFM to Germany. Boom time for solar and strong support helped move Germany companies and manufacturing into high-gear in the industries supporting solar power. • 2010-2011 – Drivers for Change – Module prices, more supply than demand, Euro-zone economy – austerity measures, rapid growth on electric system of intermittent RE. • 2012 – Adjustments – New policies in Germany are expected soon – June 2012 New Renewable Law expected at the end of June Helping Utilities Make Smart Solar Decisions
Challenges The Grid • High-penetration of intermittent resources • Infrastructure investments necessary to continue and increase us of RE • Meeting challenges – With new policies and partners: – R&D to find technical solutions to challenges The Solar Industry • Module overcapacities and price declines are challenging the industry • Germany is a top market and the challenges to the solar industry are especially significant/evident here • Indirect market drivers such as policy reductions/realignment are also impacting the industry • Major solar market players are reevaluating their models and, in some cases, moving or closing operations. Helping Utilities Make Smart Solar Decisions
Lessons to be Learned • Germany has a great deal to share in terms of lessons learned and best practices for: – Policy development and implementation – Grid Integration and Management and Infrastructure – R&D and Technical advancements – Solar project development and implementation Helping Utilities Make Smart Solar Decisions
Germany remains a top market for solar and the country has grown its manufacturing base using supportive policies – such as the FIT. RE – including solar – are here to stay but, in Germany and the US, we will have to meet a number of challenges. This mission will help us discuss the best options available with key stakeholders working in one of the largest and most dynamic markets in the world. Helping Utilities Make Smart Solar Decisions
12
Itinerary Overview Sunday, June 24th - Berlin Solar Boat Tour Hosted by SEPA If you have not yet RSVP’d for this event we need it now! SEPA Welcome Come have a drink, meet the delegates and receive your itinerary and badge Welcome Cocktails and Dinner Hosted by Prologis Monday, June 25th - Berlin • •
Meetings on the German Solar Market and Industry Hosted by Germany Trade and Invest BSW Solar – Presentation and Discussion
Dinner hosted by Phoenix Solar Tuesday, June 26th - Berlin Utility Meeting 8KU (A cooperative of 8 large municipal utilities) Meeting with 50Hertz Transmission Networking coffee/lunch hosted by 50 Hertz Utility Workshop with E.ON and E.ON Bayern Helping Utilities Make Smart Solar Decisions
13
Itinerary Overview Wednesday, June 27th - Kassel Fraunhofer IWES (Institute for Wind Energy and Energy System Technology) Presentation and Lab/Site Visit Check-in to Pentahotel Kassel Thursday, June 28th - Kassel – Berlin Enerparc Site Visits - Tour of two large-scale PV power plants (north of Leipzig) Friday, June 29th - Berlin Meeting with BNetzA Bundesnetzagentur (German Federal Network Agency) Meeting with Dr. Georg Nüßlein, Member of Parliament Tour of the Reichstag (Historic Parliament Building) SEPA Farewell Dinner at Habel Weinkultur
Helping Utilities Make Smart Solar Decisions
14
Global Solar Stats • 2011 New PV added to the grid – Global Total: 16.6 GW 2010 27.7GW 2011 • Top solar markets: – 2010: Germany, Italy, Czech Republic – 2011: Italy, Germany, China, US, France, Japan • Total installed PV capacity +67.4 GW (end 2011) • Germany vs. US in 2011 – Germany newly installed capacity 7.5GW (total 24.7 GW) – US newly installed 1.6GW (total 4.2 GW) (Source: European Photovoltaic Industry Association “Market Report 2011”) Helping Utilities Make Smart Solar Decisions
Different policy drivers in Germany vs. the U.S. • German Feed-in Tariff is a national policy that encourages end consumers to install solar systems. • There are no mandates for German utilities to add solar to their generation portfolio. However, they must take any solar electricity generated by their customers (guaranteed access to the grid / “musttake provision” for utilities). • Renewable energy sources have priority in scheduling over conventional energy sources. Helping Utilities Make Smart Solar Decisions
16
Structure of PV Ownership in Germany by end of 2010 The “big 4” IOUs Others
Regional electricity generators Other utilities International utilities
Private households/Residential Commercial businesses
EPC companies
Investment funds/banks Farmers/agricultural businesses
Source: Fraunhofer ISE 2012, p.21 - www.ise.fraunhofer.de/de/aktuelles/veroeffentlichungen/veroeffentlichungen-pdf-dateien/studien-undkonzeptpapiere/aktuelle-fakten-zur-photovoltaik-in-deutschland.pdf; translations: SEPA
Helping Utilities Make Smart Solar Decisions
17
Market segments of on-grid PV systems– more than 1 million systems total in 2011
Helping Utilities Make Smart Solar Decisions Source: BSW April 2012 - http://indonesien.ahk.de/fileadmin/ahk_indonesien/Dokumente/BD/GISED-2012/BSW.pdf
18
Germany Electricity Generation Mix by end of 2009
BNetzA reports 1.8 GW of new PV capacity registered between Jan and March 2012.
(Sources: KEMA and BDEW; Data in Percentages)
2011
2012
January
266 MW
450 MW
February
100 MW
200 MW
March
147 MW
1150 MW
Helping Utilities Make Smart Solar Decisions
19
Policy Goals in Germany • Renewable energy targets: share of at least 35% in total electricity consumption by 2020, a 50% share by 2030, 65% by 2040 and 80% by 2050. • Renewable energy targets: an 18% share of total energy consumption by 2020, a 30% share by 2030, 45% by 2040 and 60% by 2050. • As a response to the nuclear disaster in Fukushima, in summer 2011 Germany adopted decisions on the gradual phase-out of nuclear power by 2022, greater energy efficiency and an accelerated switch to renewable energies. Source: German Government (http://www.bmu.de/english/transformation_of_the_energy_system/resolutions_and_measures/doc/48054.php)
Helping Utilities Make Smart Solar Decisions
20
Policies cont’d: FIT history/details • • • •
•
Electricity Feed-in Law (StrEG) 1990: German utilities were required to buy electricity from non-utility RE generators at a fixed percentage of the retail electricity price. Renewable Energy Sources Act (EEG) 2000 : instituted priority access to the grid for RE; FIT incentive levels based on the costs of generation for all technology types; degression factor included. EEG amended in 2004: further differentiation between building-based, groundbased, and other installation sites. EEG amended in 2009 and 2010: additional incentive level cuts instituted; incentives for installations on green fields formerly used as agricultural land discontinued in 2010; annual degression increased to 9 to 12% (depending on the installation type and size), but is kept variable and the specific degression depends on the increment of total installed capacity of solar power realized in the prior year (flexible cap). Current EEG amendment discussions: Talk of reducing FIT, suggestions of potential overall cuts by almost 30% followed by smaller degression increments, but more frequently vs. strong cap (very nearly at current total amount) are on the negotiation table; currently in mediation committee between Bundestag and Bundesrat, meeting today (June 13, 2012)… outcome TBD. Helping Utilities Make Smart Solar Decisions
Costs and incentive levels cut in half since 2008
(FIT incentives) (installed cost without VAT)
Yearly PV capacity additions
Helping Utilities Make Smart Solar Decisions Translations: SEPA Source/
22
Since 2006 PV system costs have come down by 65 % Current exchange rate: 1 Euro = 1.25344 USD as of 6/11/2012 Average system price for roof-top installed PV up to 100 kW (without VAT)
Source/
Helping Utilities Make Smart Solar Decisions
23
Translations & additions: SEPA
Germany has reached grid parity for small-scale PV systems
Source: Fraunhofer ISE 2012, p.6 – www.ise.fraunhofer.de/de/aktuelles/veroeffentlichungen/veroeffentlichungen-pdf-dateien/studien-undkonzeptpapiere/aktuelle-fakten-zur-photovoltaik-in-deutschland.pdf
Helping Utilities Make Smart Solar Decisions
24
The German Market: Some basic information • Market Liberalization/EU legislation (1997, 2003, & 2009): Unbundling network operation and energy supply – may be different companies under the umbrella of the same utility holding co. • Wholesale electricity market • Voluntary power exchange • Balancing market and ancillary service market • Retail competition: Consumers may freely choose their supplier (Source: “Memo on distributed Generation Options on Public Property”, KEMA, Inc. 29 April 2011) Helping Utilities Make Smart Solar Decisions
The German market: Structure and overview
Helping Utilities Make Smart Solar Decisions
26
Components of Residential Retail Rate in 2012 (in € ct)
VAT
Generation, Transmission, Distribution Concession surcharge
Total: 0.32 US ct/kWh Electricity tax
EEG surcharge (= Feed-in Tariff surcharge) Other
Translations & additions: SEPA
Helping Utilities Make Smart Solar Decisions
27
Source: BMU 2012, p.6 - http://www.erneuerbare-energien.de/files/pdfs/allgemein/application/pdf/ee_infopapier_eeg-umlage_2012_bf.pdf
Overview of the retail rate components and the factors that cause them…
* #
* Feed-in Tariff surcharge; # Heat-and-power Cogeneration surcharge
Helping Utilities Make Smart Additions: SEPA Source: BMU 2009, p.7 - http://www.bmu.de/files/pdfs/allgemein/application/pdf/brochure_electricity_costs_bf.pdf
Solar Decisions
28
Average load profile compared to average PV production in Germany, January – June 2011
Source: Fraunhofer ISE 2012, p.37 - www.ise.fraunhofer.de/de/aktuelles/veroeffentlichungen/veroeffentlichungen-pdf-dateien/studienund-konzeptpapiere/aktuelle-fakten-zur-photovoltaik-in-deutschland.pdf
Helping Utilities Make Smart Solar Decisions
29
Transmission System Operators in Germany • Code states TSO responsible for whole system of electric supply • Significant RE grid integration has resulted in the development of technical rules/guidelines by German grid operators to ensure grid stability and operation. • May curtail renewable energy
(Source: KEMA) Helping Utilities Make Smart Solar Decisions
30
Transmission Regionally and in Germany
(Source: entsoe)
Helping Utilities Make Smart Solar Decisions
31
Transmission Map: Germany •
Many similarities in way system is designed and run. A few differences – some of which help with grid integration
•
Germany helps with integration by requiring all DG above 100kV to be remotely observable /dispatchable.
•
Allows grid to be more flexible – include more DG than CA. Helping Utilities Make Smart Solar Decisions
32
Final Thoughts Refer to the check-list in the Logistics Packet to help you with final details and what is needed for your trip A printed itinerary and badge will be waiting for you at the welcome reception In-Flight Reading will help with additional details and preparation – a more detailed version of this slide deck will also be provided QUESTIONS?
Thank you for your Time and Participation We look forward to seeing you in Berlin
Helping Utilities Make Smart Solar Decisions
33
Pre-Trip Webinar
for the SEPA Renewable Energy Integration Fact Finding Mission to Germany
About this webinar…. • Webinar introduction to the Germany Fact Finding Mission. – Supplemental information is provided in the “In-Flight Reading” preparatory materials. – Items covered briefly here will be covered in greater detail on the mission.
• Content – Brief overview of our Fact Finding Mission – Review interesting topics and issues that make Germany a great place for our FFM right now. – Itinerary review – Brief overview of Germany and the electric and renewable energy market.
– Review open items for participants Helping Utilities Make Smart Solar Decisions
About the FFM SEPA Goals • Facilitate the sharing of information, lessons learned and best practices from a unique solar/utility market with a focus on issues and content of interest to our utility members • Provide unique learning and networking experiences that result in long-term relationships for the utilities when they return home Utility Delegates • Learn, network and enjoy this unique mission • Get to know your utility colleagues and build relationships • Ask questions and share your knowledge • Bring back lessons learned that can be of use in your utility • Share your experience and knowledge with your colleagues and staff Helping Utilities Make Smart Solar Decisions
Mission Focus • • • • • •
Renewable energy integration High penetration Meeting challenges in a dynamic market Policies Solar technology Solar & electric market trends
Helping Utilities Make Smart Solar Decisions
Participants • • • • • • • • • • • •
Bianca Barth, Research Manager, SEPA David Bates, Manager, Project Development, FPL Greg Bernosky, Manager, Renewable Energy Program, APS Tom Bialek, Chief Engineer, Smart Grid Ron Binz, Principal, Public Policy Consulting David Brown, Principal Distribution System Engineer, SMUD Darren Deffner, Director of Policy, SEPA Joel Dickinson, Senior Engineer, SRP Pat Dinkel, VP, Power Marketing, Resource Planning and Acquisition, APS Nadav Enbar, Senior Project Manager, EPRI Bob Gibson, VP, Market Intelligence, SEPA Julia Hamm, President and CEO, SEPA
• • • • • • • • • • •
Cynthia Hunt Jaehne, Education Manager, SEPA Bob Hunzinger, General Manager, Gainesville Regional Utilities Robert Kaneshiro, Operations Assistant Superintendent, Hawaii Electric Light Co. Eran Mahrer, VP, Utility Strategy, SEPA Melanie McCoy, GM, Wyandotte Municipal Services Patrick McCoy, Solar Program Planner, SMUD David Rubin, Director, Service Analysis, PG&E Mike Taylor, Director of Research, SEPA David Vance, Principal Engineer, SDG&E Jonathan Woldemariam, Director, Electric T&D Engineering, SDG&E Chris Yunker, Rates and Analysis Manager, SDG&E
Helping Utilities Make Smart Solar Decisions
5
Some interesting happenings in Germany: Issues, Ideas and Challenges or Why Germany?
Helping Utilities Make Smart Solar Decisions
6
About Germany • Size: 137,846 sq. mi (~Montana) • Population 81.5M (Berlin ~3.4M) (California: 163,696 sq mi / pop ~38M) • • • •
Government: Federal Republic Executive – Legislative – Judicial Legislative-bicameral parliament; Bundestag – lower house; Bundesrat – upper house Administrative divisions: 16 Länder (states). German economy is the 5th largest in the world (California ranks 8th)
Source: U.S. Department of State
Helping Utilities Make Smart Solar Decisions
Solar Map
U.S.: Installed PV ~1.6 GW in 2011 Germany: ~7.5 GW in 2011 Sources: Solar Resource Availability: NREL, PV Capacity Additions: SEPA
Helping Utilities Make Smart Solar Decisions
Changing Landscape • Germany 2000 –Model FIT. Solar market grows and companies benefit from strong support. • 2008 – 1st SEPA FFM to Germany. Boom time for solar and strong support helped move Germany companies and manufacturing into high-gear in the industries supporting solar power. • 2010-2011 – Drivers for Change – Module prices, more supply than demand, Euro-zone economy – austerity measures, rapid growth on electric system of intermittent RE. • 2012 – Adjustments – New policies in Germany are expected soon – June 2012 New Renewable Law expected at the end of June Helping Utilities Make Smart Solar Decisions
Challenges The Grid • High-penetration of intermittent resources • Infrastructure investments necessary to continue and increase us of RE • Meeting challenges – With new policies and partners: – R&D to find technical solutions to challenges The Solar Industry • Module overcapacities and price declines are challenging the industry • Germany is a top market and the challenges to the solar industry are especially significant/evident here • Indirect market drivers such as policy reductions/realignment are also impacting the industry • Major solar market players are reevaluating their models and, in some cases, moving or closing operations. Helping Utilities Make Smart Solar Decisions
Lessons to be Learned • Germany has a great deal to share in terms of lessons learned and best practices for: – Policy development and implementation – Grid Integration and Management and Infrastructure – R&D and Technical advancements – Solar project development and implementation Helping Utilities Make Smart Solar Decisions
Germany remains a top market for solar and the country has grown its manufacturing base using supportive policies – such as the FIT. RE – including solar – are here to stay but, in Germany and the US, we will have to meet a number of challenges. This mission will help us discuss the best options available with key stakeholders working in one of the largest and most dynamic markets in the world. Helping Utilities Make Smart Solar Decisions
12
Itinerary Overview Sunday, June 24th - Berlin Solar Boat Tour Hosted by SEPA If you have not yet RSVP’d for this event we need it now! SEPA Welcome Come have a drink, meet the delegates and receive your itinerary and badge Welcome Cocktails and Dinner Hosted by Prologis Monday, June 25th - Berlin • •
Meetings on the German Solar Market and Industry Hosted by Germany Trade and Invest BSW Solar – Presentation and Discussion
Dinner hosted by Phoenix Solar Tuesday, June 26th - Berlin Utility Meeting 8KU (A cooperative of 8 large municipal utilities) Meeting with 50Hertz Transmission Networking coffee/lunch hosted by 50 Hertz Utility Workshop with E.ON and E.ON Bayern Helping Utilities Make Smart Solar Decisions
13
Itinerary Overview Wednesday, June 27th - Kassel Fraunhofer IWES (Institute for Wind Energy and Energy System Technology) Presentation and Lab/Site Visit Check-in to Pentahotel Kassel Thursday, June 28th - Kassel – Berlin Enerparc Site Visits - Tour of two large-scale PV power plants (north of Leipzig) Friday, June 29th - Berlin Meeting with BNetzA Bundesnetzagentur (German Federal Network Agency) Meeting with Dr. Georg Nüßlein, Member of Parliament Tour of the Reichstag (Historic Parliament Building) SEPA Farewell Dinner at Habel Weinkultur
Helping Utilities Make Smart Solar Decisions
14
Global Solar Stats • 2011 New PV added to the grid – Global Total: 16.6 GW 2010 27.7GW 2011 • Top solar markets: – 2010: Germany, Italy, Czech Republic – 2011: Italy, Germany, China, US, France, Japan • Total installed PV capacity +67.4 GW (end 2011) • Germany vs. US in 2011 – Germany newly installed capacity 7.5GW (total 24.7 GW) – US newly installed 1.6GW (total 4.2 GW) (Source: European Photovoltaic Industry Association “Market Report 2011”) Helping Utilities Make Smart Solar Decisions
Different policy drivers in Germany vs. the U.S. • German Feed-in Tariff is a national policy that encourages end consumers to install solar systems. • There are no mandates for German utilities to add solar to their generation portfolio. However, they must take any solar electricity generated by their customers (guaranteed access to the grid / “musttake provision” for utilities). • Renewable energy sources have priority in scheduling over conventional energy sources. Helping Utilities Make Smart Solar Decisions
16
Structure of PV Ownership in Germany by end of 2010 The “big 4” IOUs Others
Regional electricity generators Other utilities International utilities
Private households/Residential Commercial businesses
EPC companies
Investment funds/banks Farmers/agricultural businesses
Source: Fraunhofer ISE 2012, p.21 - www.ise.fraunhofer.de/de/aktuelles/veroeffentlichungen/veroeffentlichungen-pdf-dateien/studien-undkonzeptpapiere/aktuelle-fakten-zur-photovoltaik-in-deutschland.pdf; translations: SEPA
Helping Utilities Make Smart Solar Decisions
17
Market segments of on-grid PV systems– more than 1 million systems total in 2011
Helping Utilities Make Smart Solar Decisions Source: BSW April 2012 - http://indonesien.ahk.de/fileadmin/ahk_indonesien/Dokumente/BD/GISED-2012/BSW.pdf
18
Germany Electricity Generation Mix by end of 2009
BNetzA reports 1.8 GW of new PV capacity registered between Jan and March 2012.
(Sources: KEMA and BDEW; Data in Percentages)
2011
2012
January
266 MW
450 MW
February
100 MW
200 MW
March
147 MW
1150 MW
Helping Utilities Make Smart Solar Decisions
19
Policy Goals in Germany • Renewable energy targets: share of at least 35% in total electricity consumption by 2020, a 50% share by 2030, 65% by 2040 and 80% by 2050. • Renewable energy targets: an 18% share of total energy consumption by 2020, a 30% share by 2030, 45% by 2040 and 60% by 2050. • As a response to the nuclear disaster in Fukushima, in summer 2011 Germany adopted decisions on the gradual phase-out of nuclear power by 2022, greater energy efficiency and an accelerated switch to renewable energies. Source: German Government (http://www.bmu.de/english/transformation_of_the_energy_system/resolutions_and_measures/doc/48054.php)
Helping Utilities Make Smart Solar Decisions
20
Policies cont’d: FIT history/details • • • •
•
Electricity Feed-in Law (StrEG) 1990: German utilities were required to buy electricity from non-utility RE generators at a fixed percentage of the retail electricity price. Renewable Energy Sources Act (EEG) 2000 : instituted priority access to the grid for RE; FIT incentive levels based on the costs of generation for all technology types; degression factor included. EEG amended in 2004: further differentiation between building-based, groundbased, and other installation sites. EEG amended in 2009 and 2010: additional incentive level cuts instituted; incentives for installations on green fields formerly used as agricultural land discontinued in 2010; annual degression increased to 9 to 12% (depending on the installation type and size), but is kept variable and the specific degression depends on the increment of total installed capacity of solar power realized in the prior year (flexible cap). Current EEG amendment discussions: Talk of reducing FIT, suggestions of potential overall cuts by almost 30% followed by smaller degression increments, but more frequently vs. strong cap (very nearly at current total amount) are on the negotiation table; currently in mediation committee between Bundestag and Bundesrat, meeting today (June 13, 2012)… outcome TBD. Helping Utilities Make Smart Solar Decisions
Costs and incentive levels cut in half since 2008
(FIT incentives) (installed cost without VAT)
Yearly PV capacity additions
Helping Utilities Make Smart Solar Decisions Translations: SEPA Source/
22
Since 2006 PV system costs have come down by 65 % Current exchange rate: 1 Euro = 1.25344 USD as of 6/11/2012 Average system price for roof-top installed PV up to 100 kW (without VAT)
Source/
Helping Utilities Make Smart Solar Decisions
23
Translations & additions: SEPA
Germany has reached grid parity for small-scale PV systems
Source: Fraunhofer ISE 2012, p.6 – www.ise.fraunhofer.de/de/aktuelles/veroeffentlichungen/veroeffentlichungen-pdf-dateien/studien-undkonzeptpapiere/aktuelle-fakten-zur-photovoltaik-in-deutschland.pdf
Helping Utilities Make Smart Solar Decisions
24
The German Market: Some basic information • Market Liberalization/EU legislation (1997, 2003, & 2009): Unbundling network operation and energy supply – may be different companies under the umbrella of the same utility holding co. • Wholesale electricity market • Voluntary power exchange • Balancing market and ancillary service market • Retail competition: Consumers may freely choose their supplier (Source: “Memo on distributed Generation Options on Public Property”, KEMA, Inc. 29 April 2011) Helping Utilities Make Smart Solar Decisions
The German market: Structure and overview
Helping Utilities Make Smart Solar Decisions
26
Components of Residential Retail Rate in 2012 (in € ct)
VAT
Generation, Transmission, Distribution Concession surcharge
Total: 0.32 US ct/kWh Electricity tax
EEG surcharge (= Feed-in Tariff surcharge) Other
Translations & additions: SEPA
Helping Utilities Make Smart Solar Decisions
27
Source: BMU 2012, p.6 - http://www.erneuerbare-energien.de/files/pdfs/allgemein/application/pdf/ee_infopapier_eeg-umlage_2012_bf.pdf
Overview of the retail rate components and the factors that cause them…
* #
* Feed-in Tariff surcharge; # Heat-and-power Cogeneration surcharge
Helping Utilities Make Smart Additions: SEPA Source: BMU 2009, p.7 - http://www.bmu.de/files/pdfs/allgemein/application/pdf/brochure_electricity_costs_bf.pdf
Solar Decisions
28
Average load profile compared to average PV production in Germany, January – June 2011
Source: Fraunhofer ISE 2012, p.37 - www.ise.fraunhofer.de/de/aktuelles/veroeffentlichungen/veroeffentlichungen-pdf-dateien/studienund-konzeptpapiere/aktuelle-fakten-zur-photovoltaik-in-deutschland.pdf
Helping Utilities Make Smart Solar Decisions
29
Transmission System Operators in Germany • Code states TSO responsible for whole system of electric supply • Significant RE grid integration has resulted in the development of technical rules/guidelines by German grid operators to ensure grid stability and operation. • May curtail renewable energy
(Source: KEMA) Helping Utilities Make Smart Solar Decisions
30
Transmission Regionally and in Germany
(Source: entsoe)
Helping Utilities Make Smart Solar Decisions
31
Transmission Map: Germany •
Many similarities in way system is designed and run. A few differences – some of which help with grid integration
•
Germany helps with integration by requiring all DG above 100kV to be remotely observable /dispatchable.
•
Allows grid to be more flexible – include more DG than CA. Helping Utilities Make Smart Solar Decisions
32
Final Thoughts Refer to the check-list in the Logistics Packet to help you with final details and what is needed for your trip A printed itinerary and badge will be waiting for you at the welcome reception In-Flight Reading will help with additional details and preparation – a more detailed version of this slide deck will also be provided QUESTIONS?
Thank you for your Time and Participation We look forward to seeing you in Berlin
Helping Utilities Make Smart Solar Decisions
33
