Prospects for System Transformation in the Electricity Sector

The alliance of powerful players in the prevailing system of fossil fuels and nuclear energy might strive to maintain the status quo. Transforming the existing system is an incredibly challenging task. It requires fundamental economic, social and structural change and the dismantling of traditional paradigms and conventions. Transformation of the system not only entails disseminating and implementing the new technologies, but also creating regulations, standards, institutions, organiza­tions and networks with the aim of developing a new and stable regime. This multi­actor and multi-level process is characterized by uncertainty and risk as it involves many actors at different levels and in different locations. Far-reaching change takes time, demands large amounts of investment and is the combined product of differ­ent approaches at different levels.

Nevertheless, the process to date has at least sparked initial changes to the framework of the energy supply system: society’s awareness is growing with regard to the dangers of nuclear and climatically harmful energy generation technologies and the limited nature of resources. The share of power generated from renewable energy sources is increasing and energy providers are challenged to account for this rising share as they are obliged to connect these plants to the grid. The hope remains that the renewable energy innovation process thus far represents the start of a sustainable system transformation.

[1] For a detailed description of the methodological approach of the Constellation Analysis, see Schon et al. (2007).

Cf. e. g. Rammert (2002); Rammert (2003).

[3]A few years after its foundation in 1972, the Federal Association of Environmental Grassroots Action Groups (BBU) comprised already more than 600 groups (Roth 2009).

[4] Future report of the World Commission on Environment and Development “Our common future”, chaired by Gro Harlem Brundtland.

[5] E. g., GEO special issues on climate protection in the 1980s; Bild der Wissenschaft issues on hydrogen technology.

[6] The Stern Review: The Economics of Climate Change (Stern 2007).

[7] At the time of going to press, seven power station were under construction and 22 power sta­tions were in the design phase (cf. http://www. duh. de/…, accessed August 25, 2009). Critical locations included Hamburg-Moorburg, Hamburg-Brunsbuttel, Berlin-Lichtenberg, Lubmin in Mecklenburg-Western Pomerania and Mainz-Wiesbaden (cf. Die Klima-Allianz: “Der Widerstand wachst – Proteste gegen neue Kohlekraftwerke.” www. deutscheumweltstiftung. de/, accessed April 21, 2009).

[8] The first oil price crisis was triggered in 1973 by the Yom Kippur War, in the wake of which the OPEC (Organization of the Petroleum Exporting Countries) drastically curbed oil production. The oil price rose by ca. 70% due to this “oil embargo”. The second oil price crisis occurred in 1979, and was essentially caused by production losses and confusion after the revolution in Iran and the subsequent war between Iraq and Iran.

[9] See also the crude oil studies of the Energy Watch Group, which assume that maximum produc­tion (“peak-oil”) had already been reached in 2006 (www. energywatchgroup. org/…, accessed December 10, 2009).

[10] The trading volume on the oil market is frequently 15 times that of the actual worldwide oil consumption of currently 86 million barrels per day (ibid.).

[11] Demonstrations in Brokdorf in 1976, Grohnde in 1977, Kalkar in 1977, Gorleben in 1979 etc.

[12] On 28 March 1979 the reactor in block 2 experienced a partial meltdown, in the course of which about a third of the reactor core was fragmented or melted.

[13] In September 1957 a concrete tank containing a highly radioactive liquid exploded on the south­east side of the Ural mountain range (close to Ozyorsk) at the plutonium plant “Mayak”. Significantly more radioactivity was released than during the Chernobyl accident. The disaster is regarded as the best kept secret of a maximum credible accident in history. See http://www. welt. de/wissenschaft/… (accessed August 25, 2009).

[14] Press release of the SPD parliamentary group on 26 January 2000.

[15] Germany agreed within the context of the Kyoto Protocol to reduce six greenhouse gases by 21% between 2008 and 2012.

[16] Accidents in Brunsbuttel (2001) and Krummel (2007).

[17] http://www. bmwi. de/BMWi/… (accessed October 21, 2008). BDI president Jurgen Thurmann, too, opposed a nuclear phaseout based on the argument of climate protection (press release of 22 May 2007).

[18] http://www. verivox. de/nachrichten/… (accessed August 20, 2009).

[19] Whether the changed consumption behavior in China and India has really contributed to the current price rise is doubted by the FAO. Their growing demand for grain, it argues, is met by their own production. China’s and India’s grain imports have dropped from 14 million tons at the begin­ning of 1980 to 6 million tons in the last 3 years, but the future influence on high food prices could be greater (FAO 2008, 11).

[20] The United Nations Conference on the Human Environment (UNCHE), also known as the Stockholm Conference, took place in Stockholm from 5 to 16 June 1972. It was the first environ­mental conference convened by the United Nations.

[21] Strubel (1992, 18), cited in Bechmann & Beck (1997, 148).

[22] www. icsu-scope. org/downloadpubs/scope29/statement. html (accessed September 10, 2009).

[23] In November 1987 a conference of high-ranking political decision-makers was held in Bellagio (Italy). It drew on the results of the Villach conference (Matthes 2005, 26).

[24] Prof. Dr. Hartmut GraBl was the director of the Max Planck Institute for Meteorology, Hamburg, between 1989 and 2005. From 1994 he was in charge of the World Climate Research Program (WCRP) for several years, which is organized jointly by the WMO and the International Council of Scientific Unions.

[25] The Committee of Inquiry was appointed by the 11th German Bundestag and existed from 1987 to 1995. Its first report in 1988, presented at the researchers’ convention on climate change in Hamburg, focused in particular on replacements for the greenhouse gas CFC and on measures for rational energy use (www. nachhaltigkeit. info/artikel/…, accessed November 10, 2009).

[26] The German Meteorological Service (Deutscher Wetterdienst) is still part of the Federal Ministry of Transport, Building and Urban Affairs today. It is no longer responsible for matters of climate protection, though. Climate issues were primarily associated with weather phenomena at the time.

[27] The greenhouse gases addressed by the 1997 Kyoto Protocol are carbon dioxide, methane, nitrous oxide (laughing gas), perfluorocarbons, hydrofluorocarbons and sulfur hexafluoride.

[28] The United Nations Framework Convention on Climate Change (UNFCCC) aims to slow down man-made global warming and to mitigate its impact.

[29] The United Nations Conference on Environment and Development (UNCED) took place in Rio de Janeiro, Brazil, in 1992. It adopted the Agenda 21, an action program containing recommenda­tions for sustainable development, and is regarded as a milestone in global environmental and development policy.

[30] The Kyoto Protocol is an optional protocol linked to the United Nations Framework Convention on Climate Change (UNFCCC) and adopted on 11 December 1997. It sets binding targets for the reduction of greenhouse gas emissions.

[31] Carbon dioxide, methane, nitrous oxide, perfluorocarbons (PFC), hydrofluorocarbons (HFC) and sulfur hexafluoride. Reduction of the individual gases were converted to “CO2 equivalents”, and then added up to a total value.

[32] www. bmu. de/klimaschutz/aktuell/… (accessed August 25, 2009).

[33] Cf. e. g., forsa (2005), BUND (2007), Agentur fur erneuerbare Energien (2008). Mautz & Byzio (2004, 112) speak of “energy transition as a guiding principle of society”.

[34] These targets failed as a result of the coalition of the US and the OPEC states known from the context of climate policy (ibid.).

[35] Hirschl (2008, 578) perceives an important positive effect of the conference in the fact that its voluntary context allowed the participating countries to “positively” deviate from their usual positions in climate and energy policy. The federal environment minister of the time termed the conference a milestone in the transition to an energy system that places climate protection and the real development potential of the world’s poor countries at the center of attention.

[36] Cf. REN 21 Renewable Energy Policy Network. 2005. “Globaler Statusbericht 2005 Erneuerbare Energien”. Washington, DC: Worldwatch Institute.

[37] The Group of Eight is comprised of the leading industrialized nations of Germany, the United States of America, Japan, Great Britain, Canada, France, Italy and Russia. The European Commission is also represented in the commission with observer status.

[38] This refers to the commitment to restrict the rise in temperature to below 2°C compared to the pre-industrial level.

[39] The Climate Conference on the Indonesian island of Bali was the 13th Conference of the Parties of the Framework Convention on Climate Change (cf. Loschel et al. 2008, 28 sqq.).

[40] Not all countries accepted the base line of the Kyoto Protocol, which prescribes and quantifies a reduction of carbon dioxide emissions. Nations with a strong economic development (USA, China) opposed for economic reasons. The developing countries, in turn, demanded greater support of the industrialized countries in dealing with the problems and costs incurred by climate change.

[41] All of the G8 states (i. e. also the USA) declared their support for emission reductions by at least 50% by 2050 at the G8 Summit in Japan.

[42] Schellnhuber, J. in: http://www. epd. de/nachrichten/nachrichten_index_68662.html (accessed November 20, 2009).

[43] http://unfccc. int/resource/docs/2009/cop15/eng/l07.pdf (accessed December 23, 2009).

[44] Ultimately the efforts benefited from the simultaneous foundation of other partnerships, such as the REN 21 (Hirschl 2008, 484 and 532 sqq.) While REN 21 is a relatively open policy network with only a small secretariat that is operated by the GTZ and the UNEP, IRENA was devised as an independently acting agency right from the start (IRENA 2009a).

[45] The Agency provides its consulting services at the request of its member states only (Bundesregierung 2008a, 7).

[46] This Agency is accused of not taking a neutral stance toward the entirety of energy sources, but rather to heavily support conventional and nuclear energy supply (Scheer 2008a, 1; similar Gabriel 2009, 1). Gabriel therefore regards IRENA as an alternative to the lobby interests of the conven­tional energy industry (2009, 2).

[47] The EU Commission had presented a first draft directive on the liberalization of the energy markets as early as 1992. Yet it was not adopted.

[48] The sources for the legal information used in this chapter are given in the Index of Legal Sources.

[49] This sector had successfully fought changes to the 60-year-old legal status quo, especially the abandonment of the protected regional monopolies.

[50] In the case of electricity it is made up of (1) generation, (2) (wholesale) trade, (3) electricity grids (high and extra high voltage), (4) sales and (5) distribution networks.

[51] This grid access regulation is designed to permit non-discriminatory third-party access to the supply grids. Denying access to the grid is only possible if the grid does not have the required wheeling capacities.

[52] Grid operators must make available their grids at a certain fee, while grid usage charges may be government-regulated.

[53] The European Commission frequently introduces a legislative process (e. g. adoption of direc­tives) with the so-called Green or White Papers. Green Papers are published with the purpose of initiating a consulting process at the European level. White Papers contain proposals for relevant measures and activities of the European Community.

[54] http://www. bundesregierung. de/… (accessed September 1, 2009).

[55] The Lisbon Strategy was adopted at a special summit of the European heads of state in Lisbon in March 2000. It aims to assist political alignment in EU countries, which is intended to make the EU the most competitive and most dynamic knowledge-based economic area of the world by 2010. This strategy, which was simplified in 2005 after an evaluation of the half-time results, is supposed to make a significant contribution to the economic upswing in Europe. Cf. http://ec. europa. eu/growthandjobs/ index_de. htm (accessed September 1, 2009).

[56] The Commission, or to be more precise, the competition commissioner and his directorate – general, preferred quota-based certificate schemes, and rejected feed-in models as being inefficient.

[57] This was favored by the advocates of the principle of subsidiarity, who had objected simplifica­tion as well and wanted to maintain the member states’ scope for action (Hirschl 2008, 434).

[58] In 2001 Germany generated ca. 7% of its electricity from renewable energy sources.

[59] The reference values for Germany were also 2% (2005) and 5.75% (2010). These targets do not necessarily require an admixture, but the respective percent share in the overall fuel demand to be covered by biofuels (cf. Art. 3 (2)).

[60] http://www. euractiv. com/de/energie/… (accessed September 1, 2009).

[61] In addition, the directive specifies a non-binding indicative trajectory for each member state (interim targets). It also stipulates that 20% of the respective national targets shall be met in 2012, 30% in 2014, 45% in 2016, and 65% in 2018.

[62] IPCC (Intergovernmental Panel on Climate Change) scientists were invited to attend the Committee of Inquiry. Not only the Committee of Inquiry benefited from this. The members of the IPCC, too, realized that there was great potential for scientific and political cooperation at the national level (Durrschmidt 2007, pers. comm.).

[63] There were, for instance, considerable differences concerning the margin nuclear energy should have in view of climate protection.

[64] Cf. http://www. germanwatch. org/… (accessed August 25, 2009); cf. also Beisheim (2003, 225).

[65] The source for this section are personal reports from the Federal Ministry for the Environment.

[66] The term originates from the title of a study conducted by the Oko-Institut in 1980, which prepared a forecast about nuclear phaseout and energy generation from mineral oil.

[67] The future investment program was financed by interest savings that the federal government obtained from additional redemption payments on debts from UMTS allocation funds. Between 2001 and 2003 an annual 50 million euros from these savings were used mainly for research and development of projects in the field of renewable energy and fuel cells (BMU 2002, 19).

[68] The German Energy Agency (dena) was founded by the Federal Ministry of Economics and the Kreditanstalt fur Wiederaufbau (KfW) on 29 September 2000. The federal ministry and the KfW each have a 50% share in dena. The objective was to establish a center of expertise for energy efficiency and renewable energy.

[69] In its issue of February 2007, for instance, the journal Erneuerbare Energien, reported on conflicts between wind power interest groups and hydropower interest groups (Baars 2007, 6).

[70] The most important ones were the interest group “Windkraft Binnenland (IWB)” and the “Deutsche Gesellschaft fur Windenergie (DGW)” which merged with the German WindEnergy Association (BWE) in 1996.

[71] United Nations Framework Convention on Climate Change (UNFCCC).

[72] http://www. bmu. de/klimaschutz/nationale_klimapolitik/… (accessed September 1, 2009).

[73] “Vereinbarung zwischen der Bundesregierung und den Energieversorgungsunternehmen uber die kunftige Nutzung der Kernenergie” (Agreement between the German federal government and the power utilities about the future use of nuclar power) of 14 June 2000.

[74] In 2007, 17 nuclear power stations were still being operated.

[75] Cf. Bundesregierung (2002a): The German national sustainability strategy “Perspectives for Germany” is very similar to the EU strategy of 2001.

[76] Bundesregierung (2004): “Fortschrittsbericht. Perspektiven fur Deutschland”; Bundesregierung (2005): “Bilanz und Perspektiven”.

[77] The utilization of offshore wind energy was viewed as necessary by the German government in order to meet the statutory climate protection commitments and substitution targets.

[78] The funding volume was increased tenfold due to the green electricity taxation.

[79] Under Hans Matthofer, Federal Minister of Research and Technology from 1974 to 1978.

[80] The total budget had been 6.53 billion german marks. Nuclear energy was allotted 4.53 billion marks, coal (especially its conversion into liquid and gaseous energy sources) received a total of 940 million german marks, rational energy use 490 million marks, and new energy sources 570 million marks. When deducting nuclear fusion, the promotion of those energy sources that are defined today as “renewable” was merely 191 million marks (BMFT 1978, 160).

[81] At the time the DLR was going through a crisis during which aeronautics activities were curbed. Since the DLR had concerned itself with the conversion of energy with respect to aerospace tech­nology, it now began to deal with questions of terrestrial energy supply as well.

[82] Cf. Program survey “Sekundarenergiesysteme. Strom, Kohleveredelungsprodukte, Wasserstoff, nukleare Fernenergie, Fernwarme. Kurzfassung.” Report by the KFA Julich No. 1148, Programmgruppe Systemforschung und technologische Entwicklung. Commissioned by the BMFT in 1974.

[83] Ludwig Bolkow founded the Ludwig Bolkow Foundation (Ludwig-Bolkow-Stiftung) in Ottobrunn in 1983. The objective of the Foundation was to make technology more ecological. Studies were performed on solar installations in the desert and on a more efficient storage of hydrogen as an energy source.

[84] Cf. Winter & Nitsch (1989); Nitsch & Luther (1990); DLR et al. (1990); Bradke et al. (1991); Traube (1991); Nitsch & Wendt (1992); LangniB (1994); Enquete-Komission (1995).

[85] Several titles of German news magazins like Der Spiegel show that energy from sun and water were of public interest: In 1976 it published an article titled “Energie aus Sonne und Wasser fur die Welt” (Energy from sun and water for the world). It also published articles on the potentials of hydrogen in 1972, 1976 and 1977. In 1987 the magazine’s cover story was: “Wasserstoff und Sonne. Energie fur die Zukunft” (Hydrogen and sun: energy of the future) (Spiegel 1987, No 34, Issue 41, 17 August 1987).

[86] The idea of an energy transition was for the first time elaborated in a survey presented by the Oko-Institut Freiburg in 1980. It had the title “Energiewende” (energy transition) (Krause et al. 1980).

[87] The program promotes investment in energy saving and the use of renewable energy sources. It differentiates between demonstration promotion (focus on feasibility) and widespread promotion (focus on marketability).

[88] Guideline of the Ministry of Economics in Brandenburg for the promotion of energy efficiency and for the use of renewable energies (REN Program) of 18 July 2007.

[89] Association agreements (“Verbandevereinbarungen”) have been a peculiar German way of corporate self-regulation.

[90] For the history of the Electricity Feed-in Act, see Kords (1993), Berchem (2006).

[91] Bernd Schmidbauer was the CDU/CSU’s environment spokesperson in the Bundestag and mem­ber of the Committee of Inquiry “Vorsorge und Schutz der Erdatmosphare” (Provisions for the Protection of the Earth’s Atmosphere). Matthias Engelsberger, a member of the CSU and also of the Bundestag, represented the interests of medium-sized businesses (wood processing, hydro­power) in Bavaria.

[92] Badenwerk AG in Karlsruhe, Kraftubertragungswerke Rheinfelden and Stadtwerke Geesthacht each paid only the rates declared in association agreements to one of their customers (Tacke 2004, 207).

[93] Der Spiegel, 8 May 1995; cf. Deutscher Bundestag, minutes of plenary proceedings 13/39 of 19 May 1995.

[94] This rule specifies that the upstream grid operator has to refund the additional costs incurred by exceeding the 5% share as soon as the share of renewable energies exceeds 5% of the kilowatt hours sold by the power utility.

[95] Cf. comments in Natur und Recht 2002, p. 148.

[96] The remuneration specified in the StrEG was coupled to the average power price, which dropped in the course of the continuing liberalization of the energy market.

[97] Cf. Green faction in the Bundestag (1999, 23).

[98] For example, see the pilot study by Nitsch (2000). The results of these examinations were presented at the Bundestag’s expert sittings and were drawn on for the decision-making process.

[99] There was dissent on the compensation rates, on rotor surface model versus reference yield model, distribution of the grid connection costs and grid reinforcement costs.

[100] Draft of a law on the promotion of power generation from renewable energy sources (EEG) and on changing the oil taxation law of November 29, 1999. The EEG entered into force on April 01, 2000.

[101] Especially metal processing businesses and the aluminum industry.

[102] In view of the threat of job losses, the Federal Ministry for the Environment ultimately felt pressured to permit such a hardship provision for the energy-intensive industry.

[103] The so-called “Hartefallregelung” (hardship provision). Doubts were raised about whether this increasing advantage of the electricity-intensive companies was still in accordance with the Constitution (Oschmann & Sosemann 2007, 3).

[104] Cf. BMU (2006) and the studies of ARGE Monitoring PV-Anlagen (2006) on photovoltaics and of IE Leipzig (2007) on biomass.

[105] The EEG field report (BMU 2007c) had been presented to the German Bundestag by the Federal Environment Ministry in consultation with the Federal Ministry of Agriculture and the Federal Ministry of Economics, and was resolved by the Federal Cabinet on 7 November 2007. In it the portfolios had already agreed on recommendations for shaping the system of promotion based on minimum remuneration and bonuses for the individual sectors.

[106] Matters of dispute included the compensation rates for solar power, for instance, which the CDU and the CSU would have preferred to be much lower.

[107] http://www. bmu. de/pressemitteilungen/… (accessed September 3, 2009).

[108] The zoning category of “appropriate areas” was introduced by the BauROG 1998 (cf. Index of Legal Sources). The appropriate wind use areas were identified by overlaying criteria indicating high wind yield with minimal clearance criteria. The latter were meant to avoid conflicts with other land uses (like settlement, recreation) and protection needs (e. g. bird protection, cultural heritage, visual landscape).

[109] This opportunity was grasped in particular by the northern German federal states.

[110] Projects with a licensing privilege in non-urbanized areas have to be given approval, unless they are not compatible with public interests (see Section 35 of the Federal Building Act).

[111] In Brandenburg and Mecklenburg-Western Pomerania, the regional plans became more impor­tant as a means of regulation than in the old federal states due to the lack of local land use plans in the new federal states.

[112] E. g., shipping, construction of storage sites (sand and gravel quarrying), fishing, aquacultures, military use, communications (subsea cabling), tourism.

[113] Supported by the Federal Agency for Nature Conservation, the Federal Environment Ministry’s department for nature conservation initially rejected the privileged status for landscape protection reasons.

[114] The Federal Environment Ministry prepared a draft formulation for the privileged status for the Bundestag’s Environment Committee (Durrschmidt 2007, pers. comm.).

[115] At the level of regional planning: “Eignungsgebiete” (appropriate areas); at the level of local development planning: “Konzentrationszonen” (concentration zones).

[116] Article 7 of the Act for the Acceleration of Infrastructural Planning amended the German Energy Industry Act (EnWG) by inserting § 17a, which commits transmission system operators, in whose supply area offshore wind turbines are operated, to establish and maintain a connection to the grid at their own expense.

[117] Article 2 of the Energy Line Extension Act effects changes to the German Energy Industry Act. A planning approval procedure with a concentrating effect is introduced for grid connection of offshore turbines. It replaces the previously necessary time-consuming individual approvals.

[118] Hirschl (2008) ascribes the German electricity sector a great deal of inertia in view of attempts at liberalizing and restructuring the supply structures.

[119] In August 2009 E. on and a municipal buying pool agreed to purchase Thuga. Thuga is the core of Germany’s largest network of local and regional energy suppliers (http://www. thuega. de/… accessed September 2, 2009). When carried out, the transaction will found Germany’s fifth-largest independent energy and water supplier. The association of municipal businesses (VKU) hopes that the sale will create greater competition within the electricity market (Suddeutsche Zeitung of 12 August 2009).

[120] The largest power generating company is Electricite de France (EdF), with sales figures amounting to 633 TWh per year. E. ON is second, selling 435 TWh per year, and REW comes third. EnBW ranks tenth, selling 140 TWh per year.

[121] Even at the time of adopting the EU directive in 1995, it aimed to save German utilities from being subjected to a regulating authority.

[122] This coalition was made up of proponents of renewable energy, consumer associations, and even the conservative opposition or states under conservative governments and industrial energy consumers. The EnBW played a special role in that it stepped out of the otherwise closed ranks of the conventional power supply industry and spoke up in favor of regulation.

[123] Threatening infringement proceedings.

[124] See Hirschl (2008, 242).

[125] If a grid operator violates the order demanding discrimination-free access to the grid and fair remuneration, the state’s competition authority (antitrust authority) can act retroactively.

[126] Its tasks also include granting approval for grid remuneration for transmission of electricity and gas, preventing or eliminating obstacles blocking access to the energy supply grid for suppliers and consumers, standardizing supplier change processes, and improving grid connection conditions for new power stations. Cf. http://www. bundesnetzagentur. de/… (accessed September 9, 2009).

[127] Only in individual cases can the Consumer Protection Ministry and the Federal Environment Ministry be consulted (on general prices for private clients and on renewable energies, respectively).

[128] The accusation of having violated competition law and the threat of a possible penalty by the European Commission.

[129] With the adoption of the Meseberg resolutions in August 2007, the Federal Government reiterated the decision to reduce greenhouse gas emissions by 40% by 2020 compared to 1990. Moreover, the Federal Government advocates a commitment of the international community of nations (developed countries) to reduce greenhouse gas emissions by 80% by 2050.

[130] In technical and economic terms, nuclear and lignite-fired power plants are designed to generate a steady amount of electricity to cover the base load.

[131] Nuclear power stations and CCS coal-fired power plants are regarded as inflexible, i. e., not capable of being regulated – it takes more than 20 h to start up a power station.

[132] These are “virtual” power plants with a regional focus which use control technologies to combine decentralized power conversion plants for solar power, wind, biogas and water located in various regions, in a way that allows for continual on-demand power supply. The linking of the power plants permits controlling the decentralized plants in the same way as a conventional large power plant.

[133] New large coal-fired power stations can only be operated economically if their capacity utilization is high. This holds true in particular for lignite-fired power plants that require a very high number of operating hours in order to be economical. The electricity produced must be sold on a continuous basis, even in times of low demand (at night or at weekends). The production rate of other generators must be decreased during this phase.

[134] In addition, the electricity stock exchange frequently saw situations that led to zero or negative prices, which result from the fact that there is an excess amount of base load while the distribution of electricity generated from renewable sources must be prioritized.

[135] CCS = carbon (dioxide) capture and storage.

[136] Arguments for the development and application of the CO2 capture technology include the possibility of exporting it to countries such as China or India, where coal will remain an important source of energy for some time.

[137] At the time of going to press, a controversially debated bill on CO2 storage was in the course of being legislated to explore this (see SRU 2009).

[138] Biogas is produced in oxygen-free (anaerobic) conditions when biomass breaks down into its component building blocks. For the decomposition of organic materials to take place, certain bacteria are needed which exist in anaerobic conditions, at temperatures between 30°C and 37°C and which generate methane (CH4). Biogas consists of about two thirds methane and one third carbon dioxide. The gas also contains limited quantities of hydrogen, hydrogen sulfide, ammonia and other trace elements (FNR 2006b, 25-26).

[139] In the 1920s, Prof. Dr.-Ing. Karl Imhoff, the “father of wastewater treatment”, built the first diges­tion tower for the anaerobic treatment of sewage sludge in Essen.

[140] In the cities of Halle, Pforzheim, Essen, Erfurt, PoBneck, Munich and Heilbronn.

[141] The terms semi-liquid manure and slurry are applied synonymously.

[142] For example methane formation, ammonia damage, and nitrogen leaching into the ground water.

[143] See Mutert (2000, 31 sqq.) for innovation research and innovation policy in the 1970s.

[144] Slurry regulations (based on the power vested in the Federal Water Act to issue statutory instru­ments) regulate the conditions (time periods, minimum areas per livestock unit) under which semi-liquid manure can be introduced to areas of land in an effort to reduce the contamination of groundwater by nitrates.

[145] Full title: “Energieforschung und Energietechnologien”, period of operation: 1977-1980 and 1981-1990. The second energy research program (1981-1990) focused on topics such as the further development of incineration/gasification/pyrolysis plants, testing/adaptation of biogas plants for various waste materials and plant sizes, optimization of processing techniques of fer­mentation substrates, testing of largely energy self-sufficient systems in agriculture as well as first investigations into combined energy and food plant use.

[146] At the Federal Agricultural Research Center, Braunschweig (FAL) a 100 m3 volume “bihugas plant” (see Section was being built at the time. The plant was equipped with adequate measurement technologies and was run in order to investigate questions that were largely still concerned with composting or fertilizer production. However, according to Weiland (2008, pers. comm.) the “bihugas plant” was also the starting signal for considerations in terms of the use of semi-liquid manure for generating power.

[147] This program supports research and pilot projects for the cultivation and use of renewable resources. The thematic orientation of the support program is determined in the “Gulzower Fachgesprache” (Gulzow Expert Talks) that have been taking place since 1993.

[148] A plant with closed silos was built in Nordhausen. These silos were also used in conventional sewage treatment plants (Linke 2008, pers. comm.).

[149] The plants used for the treatment of semi-liquid manure were not adjusted to run on solid manure or substrates such as straw. The consequences were blockages and insufficient mixing of the sub­strate (Weiland 2008, pers. comm.).

[150] Only beginning in the mid 1990s the development concentrated on a few new building types and technical versions, which are today regarded as technologically mature and well proven.

[151] In the former GDR, animal production was centralized. Large facilities for the fattening and breeding of swine and cattle kept up to 190,000 animals in one place in so-called combined fattening and breeding facilities.

[152] In the 1980s, Fiat produced a small CHP plant in small batches (Fiat TOTEM), which could be run on biogas. The alternative biogas scene in West Germany knew of these power plants, but demand was low since oil only cost 10 pfennigs per liter. Fiat therefore stopped the production of the TOTEM-motor after a short while.

[153] The “Bundschuh-Biogasgruppe” developed from a (successful) protest movement against a planned Daimler-Benz test track in Baden-Wurttemberg.

[154] Dr. Heinz Schulz was the co-founder of the Fachverband Biogas e. V. in 1992.

[155] The KTBL is an institution in the operational division of the Federal Ministry of Agriculture (BMVELV), which is responsible for the transfer of technologies into agricultural practice. See http://www. ktbl. de/index. php7id = 9 (accessed August 21, 2009).

[156] For example Haase Energietechnik GmbH, which has worked in the area of mechanical-biological treatment of municipal waste (MBT), landfill engineering (landfill gas, leachate) and energy systems since 1981. See http://www. haase-energietechnik. de (accessed August 17, 2009).

[157] Indicated by the two circles in Fig. 4.3.

[158] The sources for the legal information used in this chapter are given in the Index of Legal Sources.

[159] The StrEG amendments of 1996 and 1998 did not develop momentum within the constellation.

[160] For more details on the role of the Committee of Inquiry, see Section

[161] Commission Regulation (EEC) No 334/93 of 15 February 1993, last modified by Regulation (EC) No 2991/95. These directives contain detailed procedural specifications for the cultivation of energy crops on set-aside land.

[162] For the origin of the StrEG and its aims, see Section 3.7.1.

[163] Even as early as at this point, it became clear that there was a need for readjustments, as the digestion of organic waste was associated with the release of pollutants and the question of the disposal of contaminated digester residues needed to be resolved. See Section concerning the enactment of the Biomass Ordinance.

[164] The media also reported on the environmental problem of the production and storage of large quantities of slurry in slurry lagoons.

[165] Slaughterhouse waste, organic waste from industrial kitchens, biogenic industrial waste such as fat from the food industry.

[166] See history of the Wittmund co-fermentation plant on www. biogasanlage-wittmund. de (accessed August 17, 2009).

[167] See http://www. bkwk. de/bkwk/infos/chronik/ (accessed August 17, 2009).

[168] For example in the case of individual scientists from the research facilities who became self­employed plant designers.

[169] These were the Institut fur Dungungsforschung at the Akademie der Landwirtschaftswissen – schaften in Potsdam and the Institut fur Energetik (Leipzig) (IE Leipzig).

[170] Today known as the Leibniz-Institute for Agricultural Engineering Potsdam-Bornim.

[171] Since 1999, the association has been based in Freising, near Munich: See http://www. biogas. org/ (accessed September 29, 2009).

[172] Dr. Heinz Schulz (dec. 1998) was both the leader of the Environment and Energy Technology department of the Bavarian Landesanstalt fur Landtechnik (State Institute for Agricultural Technology) as well as director of the Landtechnischer Verein (Association of Agricul­tural Technology) in Bavaria.

[173] This is documented in the association’s conference proceedings from 1997 concerning the main topic of Europe, with reports from Luxembourg, England, Austria und Italy.

[174] During the yearly conference of 2004, the Association expanded its focus area to include EU candidate countries such as the Czech Republic.

[175]http://www. biogasunion. de (accessed August 21, 2009) based in Berlin.

[176] The reform of the CAP led to the introduction of a single payment scheme for determining direct payments to farmers. The size of the payment is partly determined by the previously received direct payments and partly by the standardized amounts per hectare of eligible land. The payment is linked to compliance with certain standards (cross compliance). See BMELV (2006, 68 sqq.) and http://ec. europa. eu/agriculture/capreform/index_de. htm (accessed June 13, 2007).

[177] For example Kaltschmitt & Wiese (1993); Nitsch & LangniB (1999).

[178] Since 1999, the price of grain was lower that its value as fuel. The price of rye eventually fell to 7 euro/dt (Schutte 2008, pers. comm.).

[179] Interestingly, the use of rapeseed oil – a high quality food product – was not subjected to the same degree of criticism.

[180] Cf. BT-Drs. 16/6418 of October 18, 2007. This was justified by saying that securing food sup­plies whilst avoiding rising costs had priority and that problems resulting from the release of unwanted emissions during combustion have not been satisfactorily solved yet.

[181] EEG 2000, EEG 2004 (see Index of legal references), BiomasseV 2001, privileges under building law in EAG-Bau 2004.

[182] For information on the establishment of the Renewable Energy Sources Act (EEG) see Section 3.7.2.

[183] Degression refers to the process of the relative or absolute reduction of one parameter with the rise of a correlated parameter.

[184] See Hoffmann (2002, 73).

[185] Within the scope of the EEG, the BiomasseV specifies which materials count as biomass, which procedures for power generation from biomass fall within the scope of the law and which environmental requirements are to be followed when generating power from biomass. For the purposes of this regulation, those things which count as biomass are most significantly plants and parts of plants, plant and animal waste and byproducts, and biological waste, including waste wood.

[186] The support program follows the support framework for the period 1996-2000.

[187] Data concerning profitability were collected in a nationwide monitoring program, which included 60 of the 317 biogas plants which were put into operation between 1999 and 2002. For information on the results see FNR (2005a and 2005b).

[188] Between 1998 and 2002 the Ministry of Economy was led by Minister Werner Muller (indepen­dent), and from 2002 by “superminister” (Minister for Economics and Labour) Wolfgang Clement (SPD). In both cases the politicians were closely associated with the energy sector and did not support the national renewables strategies.

[189] The management level of the conservation associations, for example, had in principle committed themselves to the aims of climate protection (NABU 1998).

[190] Inter alia Ammermann (2005); Rode et al. (2005).

[191] European Law Adaptation Act (see Index of Legal Sources).

[192] For example the increased requirements of land area in order to make agriculture more extensive and ecologically friendly, as well as areas for the cultivation of fodder and foodstuffs in areas of intensive stock rearing. Within agriculture, further competition also existed in the material utiliza­tion of renewable resources.

[193] For example, the entitlement – as enshrined in conservation law – to 10% of the area for the wildlife corridor, the demand for areas of land in order to compensate for ecosystem interference caused by building and infrastructure projects, areas for contractual nature conservation and con­servation measures integrated with cultivation.

[194] Such as afforestation, especially in sparsely wooded regions.

[195] For information on the crisis in food supply and food price see Section 3.1.5.

[196] This argument might have applied on the national level, however, regionally (e. g. in intensive stock-farming areas) shortages and increasing fodder production costs still occurred as a result of increasing lease prices and higher costs of transport for the procurement of fodder.

[197] See § 8, Abs. (2), Nr. 1, (a).

[198] The possibility of using the gas grid for biogas was first granted during the parliamentary discus­sion on the EEG of 2004. The remuneration for power generated from upgraded biogas is paid whether the power is produced locally or – having been injected into the gas grid – somewhere else.

[199] The Federal Environment Ministry published a guide for interpretation in March 2007 under http://www. umweltministerium. de/erneuerbare_energien/downloads/doc/39019.php (accessed August 21, 2009).

[200] Item (24) of the preamble obliges member states to ensure “that biogas and gas from biomass or other types of gas are granted non-discriminatory access to the gas system”. In the previous direc­tive 98/30/EC, which was replaced by the new directive 2003/55/EC, biogas feed-in had not been explicitly considered.

[201] If there is any free capacity, biogas is to be given priority in the local distribution network level. When net capacities are insufficient, however, the grid operator may refuse gas injection.

[202] See also research project on the conditions of gas injection cf. Fraunhofer UMSICHT; Projekthomepage, http://www. biogaseinspeisung. de (accessed August 21, 2009).

[203] The minimum injection volume, up to 500 m3/h biomethane, can only be fed into grids with a high flow-rate. Local grids (usually < 1 bar) are not adequate for this.

[204] This included, amongst others, the German Biogas Association and the political party BUNDNIS 90/Die GRUNEN http://gaseinspeisegesetz. de/CorneliaBehm_MdB_B90Gruenen. pdf (accessed August 21, 2009).

[205] In a statement on the EU Biomass action plan, the Federal Government declared that, given the successes achieved so far, there was no need for a biogas feed-in law along the lines of the EEG. The Federal Network Agency also objected to it.

[206] An operator survey showed that, so far, more than half (approximately 55%) of the plants had been approved according to BImSchG and approximately 44% according to building legislation (Scholwin & Thran 2008, 44).

[207] Up to the amendment of 2004, biogas plants in the outer zone were only considered privileged in compliance with Section 35 BauGB if they were either mainly fed with materials from their own agricultural operations or if the energy generated by them was mainly used by the farmer himself.

[208] Thus, there must be a spatial and functional connection with a farm or a stockfarm and more than 50% of the biomass must originate on this farm or similar farms nearby. Privileged status is restricted to one plant per farm or operating location.

[209] The term Aufienbereich comes from German zoning law and describes a category of areas which are not within the area designated by a binding land-use plan and which are not part of the already built-up area (Innenbereich); see Section 35 (3) of the Federal Building Code (Baugesetzbuch – BauGB).

[210] On the basis of a model ordinance of the technical commission for urban development of ARGEBAU of 22 March 2006.

[211] The federal state of Brandenburg manifested the restoration obligation in the form of an ordi­nance. (Erlass des Ministeriums fur Infrastruktur und Raumordnung zur Ruckbauverpflichtung und Sicherheitsleistung as per § 35 Abs. 5 Satz 2 and 3 BauGB in combination with § 67 Abs. 3 Brandenburgische Bauordnung of 28 March 2006).

[212] Land is a very scarce commodity in Germany nowadays. The continued removal of agricultural land for the realization of other land-use demands (e. g. transport, urban development) is continu­ously reducing the potential for cultivation (Reinhardt & Gartner 2005, 400 sqq.). Opinions differ on the question of to what extent these losses can be compensated for, or even more than compen­sated for, by improving production methods. According to Reinhardt & Gartner (2005, 401), the significant sustainability goals could only be implemented through a reduction in the degree of self-sufficiency (food production) to 80%.

[213] Assessments of the potential of biomass: Fritsche et al. (2004): Stoffstromanalyse zur nachhalti – gen energetischen Nutzung von Biomasse; Nitsch et al. (2004): Okologisch optimierter Ausbau der Nutzung erneuerbarer Energien in Deutschland; IE Leipzig (2005): Nachhaltige Biomassenutzungsstrategien im europaischen Kontext. EEA (2006): How much biomass can Europe produce without harming the environment.

[214] Power from the 500 kW plants running on renewable resources in the biogas park was remuner­ated at a rate of 16 cents/kWh (instead of 9.3 cents/kWh for a 20 MW large-scale plant) until the end of 2008.

[215] Over a period of 20 years, the plant would have had higher revenues of around 200 million euro due to the increased tariff rates (own calculations).

[216] Various scrubbing methods (high-pressure water scrubbing, non-pressurized amine wash, organic wash) as well as Pressure Swing Adsorption (PSA) are available for this purpose.

[217] In order to attain natural gas quality, the raw gas has to be dried and pollutant gases (e. g. hydro­gen sulphide) as well as carbon dioxide have to be washed off.

[218] One example is the biogas plant in Pliening, Bavaria. With a capacity of 3.9 million m3 the plant produces biomethane and feeds 485 m3/h into the gas grid. E. ON Bayern is the buyer. The project was implemented by Schmack Biogas AG together with Renewable Energy Systems GmbH. http://www. biogas-netzeinspeisung. at/anlagenbeispiele/pliening. html (accessed August 21, 2009).

[219] The bonus system was supposed to make it possible to set specific incentives for the achievement of certain developments. So, for example, the NawaRo bonus was supposed to make other, hitherto unused, potentials accessible. The strengthening of CHP generation, as well as progress in terms of technological development, also formed a part of the explicit aims. In particular, the CHP bonus and the technology bonus were intended to provide incentives for increasing efficiency.

[220] Corporate enterprises (public and private limited companies) constitute about a quarter of the plant operators (ibid.). GmbH & Co. KG (limited partnership with a limited liability company as general partner) is particularly attractive in the case of revenue sharing models.

[221] For example, Schmack Biogas AG together with E. ON Ruhrgas and E. ON Bayern, built a 10 MW biogas plant on their own premises for injection into the natural gas grid. www. schmack-biogas. com/wDeutsch/pdfpresse/2006_07_19.pdf (accessed August 21, 2009).

[222] From the point of view of nature conservation, the usable area for the environmentally sound cultivation of energy crops is an estimated 2-2.5 million hectares. This is equivalent to around 10-13% of the area used for agriculture today (NABU Positionspapier n. d.).

[223] Examples of this are the substitution of synthetics by using plant fibers such as hemp. According to Dohler (2008, pers. comm.), the car industry is developing an increasing demand for this. A significant demand for cellulose fibers will develop in the future for the production of packaging material and adhesives.

[224] See NABU (2007). In addition, it was feared that the cultivation of energy crops could be a gateway for the use of genetically modified plants – with consequences for wild animals and plants which, as yet, remain unknown.

[225] In the Federal Nature Conservation Act an area of 10% is designated as wildlife corridor.

[226] The indemnities paid within the context of these programs were not competitive in view of the new market opportunities.

[227] Also referred to as “Vermaisung” (“maizification“).

[228] In 2007 the Federal Cabinet held a closed conference in Meseberg, for the final passage of the IEKP (see Section

[229] The resolution says that 6% of the present consumption of natural gas in Germany is supposed to be substituted with biogas by 2020 and 10% of it by 2030. cf. http://www. dena. de/de/themen/ thema-reg/projekte/projekt/biogaspartner/ (accessed August 21, 2009).

[230] For information on this fundamental problem see Section 3.1.5. Only those aspects relevant to the bioenergy sector will be addressed here.

[231] For efficiency reasons, should the EEG set stronger incentives for large-scale plants or should the focus continue to be on small and medium-sized plants?

[232] The majority of the biogas sector, especially agriculturally related firms specializing in the production of biogas plants, would thus keep a significant fraction of their clientele.

[233] According to the new GasNZV, processed biogas is to be prioritized. The grid operator is respon­sible for the adjustment of the biomethane to the calibration legislation guidelines and the pressure conditions in the gas grid. The grid operator pays the operating costs, whilst resulting investment costs are split into two. The general gas costs of the grid operators are to be transferred onto gen­eral grid fees. The biogas injector receives a flat-rate of 0.7 cents/kWh for avoided grid fees (not to be confused with feed-in tariff).

[234] Orientation toward the biomethane or natural gas market offered the biogas companies who suffered under the sales slump new economic prospects. Schmack Biogas AG, for example, subsequently focused more strongly on biogas treatment and sought co-operation with large power suppliers: See http://isht. comdirect. de/html/audio/detail/main. html7ID = 12330 (accessed August 21, 2009).

[235] Usually entire corn plants but also parts of plants.

[236] For comparison: in 2005, it was 700 new plants that were built, with a capacity of around 420 MW.

[237] This includes the high-pressure water scrubbing, amine washing as well as the pressure swing adsorption.

[238] With increasing plant size, processing costs decrease. With a flow-rate of more than 250 m3/h, processing costs come down to about 2 cents/kWh, whilst they can be double or triple that for small plants of 50m3/h (4.5-6 cents/kWh). From an economical point of view, biogas injection is therefore not particularly attractive for small producers from the agricultural sector.

[239] Some of the advantages are low-maintenance operation combined with functioning gas upgrad­ing (desulphurization and drying), low noise levels, hardly any vibrations as well as a low concen­tration of nitrogen oxide in the waste gas. Due to the low electrical efficiency of the process it is economically necessary for the high-temperature-heat to be used, for example, for drying processes, greenhouses or heating water.

[240] For information on the application of fuel cells see Kaufmann et al. (2007, 59 f.)

[241] One example for this model is the biogas treatment and injection plant Schwandorf. As a share­holder, E. ON now promotes the advantages of “biomethane”.

[242] This means that energy crops and crops grown for raw materials were cultivated on just under 17% of the arable land.

[243] At one million ha, the cultivation of rapeseed for biodiesel takes up just under 60% of cultivated land. Sugar and starch plants for ethanol make up just under 15% with an area of 250,000 ha.

[244] See Daniel (2007) inter alia; According to Kruska & Emmerling (2008, 69 sqq.), the proportion of silage corn in Rhineland-Palatinate has doubled and tripled in these communities, making silage corn the dominant crop on arable farmland.

[245] For cultivation systems see Scheffer (2005) and GraB & Scheffer (2005, 435 sqq.); see also IFEU, Partner (2008) with recommendations for the sustainable expansion of biogas generation and use.

[246] The National Biomass Action Plan was created by the BMU together with the BMELV, of which the latter was responsible for coordination www. bmu. de/43839 (accessed August 21, 2009).

[247] See SRU (2009); http://www. umweltrat. de (accessed June 11, 2009).

[248] An expansion into gaseous and solid biofuels is supposed to follow.

[249] The aim is to enable the admixture of incidental agricultural residues on farms without reducing the NawaRo bonus.

[250] It would have been conceivable, for example, to have limited the proportion of corn silage in the fermentation substrate.

[251] Since only 10% of the slurry production in agriculture had been used for the production of biogas, the intention is to increase this rate. This improvement is justified by the lower net CO2 output of slurry fermentation in comparison with the fermentation of energy crops like corn silage.

[252] The plant bonus is supposed to compensate for the higher costs of making the substrate avail­able and the lower yield of gas from this heterogeneous material.

[253] By the end of 2008, substrate prices were falling again. The world market price for wheat fell by half compared to its peak at the beginning of 2008 and ended up at around 140 euro/t. Similar developments occurred in the cases of corn and soya.

[254] The expenditure required for treatment and injection means that is only profitable for industrial­sized plants.

[255] The sustainability ordinance sets the requirements for the climatic impact of biofuels (a mini­mum 30% reduction of greenhouse gases compared to fossil fuels over the complete life cycle) and for nature conservation.

[256] Protection of certain natural areas (such as rainforests, moors), reduction of greenhouse gases by at least 35%, obligation to report on social standards, complete proof-of-origin.

[257] Following an EU initiative, evidence for the sustainability of biogenic fuels is supposed to become mandatory in the form of certification. At the end of 2008, the Federal Government and the European Commission began to set the sustainability criteria for this obligatory certifica­tion. The affected fuels are biofuels for transportation and power generation or CHP generation.

[258]For further information on the state and further development of the biogas industry see Stolpp (2009).

[259] Cf. list of projects http://www. biogaspartner. de/index. php? id = 10074 (accessed August 21, 2009).

[260] This term describes the use of plant material which comes up in the course of maintainance and enhancement of grassland, shrubs, forests, hedges, etc.

[261] The PURPA was passed by the United States Congress as a federal law. Its implementation was left up to the discretion of the states and they applied the law in various ways. The PURPA created a market for electricity producers insofar as energy supply companies were obliged to purchase electricity from other “non-utility producers”.

German mark here refers to the former German currency, Deutsche Mark.

[263] It was founded by Professor Adolf Goetzberger, see http://www. ise. fraunhofer. de/about-us/ history/history? set_language=en&cl=en (accessed June 30, 2009).

[264] http://www. wacker. com/cms/en/wacker_group/wacker_facts/history/history. jsp (accessed 30 June 30, 2009).

[265] After the end of the GDR, the company operated under the name of Freiberger Elektronikwerkstoffe GmbH from 1990 and was taken over by Bayer Solar in 1994. In 2000 SolarWorld acquired a majority stake in Bayer Solar and renamed the company Deutsche Solar. See http://www. deutschesolar. de/Chronik.236.0.html? L=1 (accessed June 30, 2009); see Fig. 5.9.

[266] The program “Rational Energy Use and Use of Inexhaustible Energy Sources” provided investment aid for renewable energy facilities. It was initiated by the state government of North-Rhine Westphalia in 1989 and has been revised on a yearly basis ever since (see Sects. 3.6.3 and

[267] Ongoing projects promoting rational energy use and hydrogen and energy storage research could also make use of these funds.

[268] Projects in particular areas (such as solar technology for developing countries) were subsidized by 100%.

[269] The Glottertal talks are representative here of strategic debates overall. Talks were also held in Bad Zwischenahn and there were a number of other expert discussions involving researchers, sector repre­sentatives and project administrators to determine the direction of research and development policy.

[270] These figures come from Internet sources (www. ren-breitenfoerderung. nrw. de/evaluation/index. html) that were no longer available by the time study was concluded.

[271] In 1989 AEG Telefunken’s photovoltaic unit was taken over by the company DASA, which was founded by Daimler-Benz.

[272] Since 1989, it has also functioned as the German section of the International Solar Energy Society (ISES).

[273] See www. eurosolar. de (accessed July 6, 2009).

[274] The Index of Legal Sources provides information on the sources of all legal documents cited in this report.

[275] 186 states ratified the Framework Convention on Climate Change.

[276] The 1,000 Roofs Program is comparable to the 250-MW Program to promote wind energy, as in both cases the government’s research portfolio supported the initial stages of the technology’s launch onto the market by boosting demand. Both programs were flanked by a monitoring pro­gram and in both cases high demand led to funding increases.

[277] Investment costs in the old German states were subsidized by 50%; in the new German states, this figure was 60%. Many states topped up these grants by a further 10% (new states) or 20% (old states) (LangniB and Ziesing 2005, 213).

[278] This figure varies according to the source: according to LangniB & Ziesing (2005, 214), instal­lations receiving funding had a total capacity of 5.8 MWp; according to Stryi-Hipp, this figure was 5.5 MWp (Stryi-Hipp 2005, 183).

[279] Mobil Tyco Solar Energy began development of the EFG (Edge-defined Film-fed Growth) process in 1973: this process involves floating a graphite body with a narrow opening (edge length 10-12 cm) on the melt. Placing a silicon disc on the melt and pulling it upward creates a ribbon. In practice, octagonal tubes up to eight meters long are pulled from the melt and then cut into wafers with a laser.

[280] The term New Economy describes an economic system with the following predominant charac­teristics: globalization, networking using new means of communication, and new methods of corporate financing.

[281] A coherent strategy did not come into existence until the Federal Ministry for the Environment assumed responsibility for renewable energies in the fall of 2002 and established an independent department for renewable energies and the environment.

[282] The compensation rate set by the StrEG (9 Cent/kWh) only covered ca. one tenth of the imputed costs incurred.

[283] In the year 2000 UMTS (Universal Mobile Telecommunications System) spectrum licenses were sold by auction for use via the mobile telecommunications system. The revenue, which was used above all to repay public debt, amounted to 50.8 billion euro.

[284] Following city council resolutions, Aachen, Freising and Hammelburg were the first cities to introduce the cost-covering model in 1993. Due to hesitation on the part of the state of North Rhine Westphalia to grant approval, the FCR came into force in the Bavarian municipalities of Freising and Hammelburg first at a rate of 2 DEM/kWh.

[285] This figure was 25 according to LangniB and Ziesing (2005, 216). According to Stryi-Hipp over 100 cities passed a resolution approving the introduction of cost-covering compensation and over 35 cities subsequently implemented this strategy (Stryi-Hipp 2005, 184). MuBler (2008, 88 and 111) states that 96 cities across Germany introduced cost-covering compensation.

[286] Wurth Solar was founded by a solar cell dealer who wanted to become less dependent on estab­lished PV companies. The dealer’s market spanned both the Germany and the global market, including developing countries (Jacobsson et al. 2002, 27).

[287] Today, Stuttgart University’s Centre for Solar Energy and Hydrogen Research (ZSW) is the largest research institute in Germany for CIS cell technology.

[288] Private investment in renewable energies totaled ca. 300 million German mark a year. These funds were primarily invested in solar water heating systems and private PV systems (BMU & UBA 1999, 2).

[289] The head of the Federal Economics Ministry’s department of renewable energies, Paul-Georg Gutermuth, was responsible for the market introduction program. His support for photovoltaics was met with frequent opposition from fellow ministers, but he received a great deal of support in this respect from the Federal Environment Ministry.

[290] See http://www. sfv. de/sob99228.htm (accessed July 7, 2009).

[291] See also (LangniB and Ziesing 2005, 217).

[292] Berlin, Thuringia, Mecklenburg-Western Pomerania, North-Rhine Westphalia.

[293] This was of particular significance for the southern German states of Bavaria and Baden – Wurttemberg, since PV technology was more widespread here than in northern Germany. This was mainly because the area received significantly higher levels of solar irradiation, but also pre­sumably due to effect of regional multipliers and a more favorable economic situation.

[294] After the EEG was passed, the KfW received 10,000 applications amounting to a total capacity of 70 MWp in March 2000 alone (Stryi-Hipp 2005, 185).

[295] This was made possible by the EU’s new community guidelines on environmental aid.

[296] See Infodienst Regenerative Energie: www. (accessed July 7, 2009).

[297] The decision to transfer responsibility for renewable energies to the Federal Environment Ministry was taken within the scope of the new coalition agreement between the SPD and Alliance 90/The Greens in fall 2002. This move also meant that the remainder of the 100,000 Roofs Program fell within the remit of the Federal Environment Ministry.

[298] The solar associations UVS (Solar Industry Trade Association) and BSi (German Solar Sector Association) merged at the beginning of 2006 to form the BSW (German Solar Industry Association).

[299] See http://100000daecher. de/forderung-von-solaranlagen/ (accessed July 10, 2009).

[300] Seventy percent of the installations that received funding from the 100,000 Roofs Program were constructed in Bavaria and Baden-Wurttemberg: southern Germany receives far higher levels of solar irradiation.

[301] See http://www.1000daecher. de/index. php? id=3 (accessed July 7, 2009).

[302] Cooperatives to operate wind power plants emerged as early as the end of the 1980s in the form of the “citizens’ wind farm” operator model and may have inspired user cooperatives in the area of photovoltaics. In the field of wind energy, the model experienced massive growth from the end of the 1980s (up until around the end of the 1990s) (Byzio et al. 2002, 310 sqq.).

[303] To avoid conflict concerning aesthetics, the solar energy sector has started offering special solar tiles or slates in the same color as the rest of the roof cladding to make the solar installation less noticeable. See http://www. pvaccept. de/eng/index. htm (accessed July 13, 2009).

[304] See Krampitz (2001, 36); see also Bernreuter (2001, 28 sqq.).

[305] See www. pvaccept. de/akzeptanz. htm (accessed July 13, 2009).

[306] The full program title was: Residential PV Systems Dissemination Program.

[307] ARGE Monitoring PV-Anlagen (2005a, 34-36).

[308] The term Aufienbereich comes from German zoning law and describes a category of areas which are not within the area designated by a binding land-use plan and which are not part of the built-up area (Innenbereich).

[309] The use of regional or land-use planning in decisions concerning site location (Article 7, Section 4 of the Regional Planning Act – ROG) was not considered to be worthwhile, since devel­opments up to that point had not yet resulted in crucial, site-related problems that could only be solved at regional planning level (ARGE Monitoring PV-Anlagen 2005a, 42).

[310] See http://www. nabu. de/themen/energie/erneuerbareenergien/solarenergie/04300.html (accessed July 14, 2009)

[311] At the end of 2004 the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety assigned the PV Systems Monitoring Working Group with the task of monitoring the impact of the revised EEG on the development of ground-mounted PV arrays (ARGE Monitoring PV-Anlagen 2007).

[312] See Stein in ARGE Monitoring PV-Anlagen (2005b, 2).

[313] The scheme makes roofs of public buildings available for private investors to install PV systems.

[314] Highly integrated companies are companies that integrate many different stages of production (vertical integration) in order to avoid buying in services.

[315] A tenfold increase in worldwide silicon production to around 400,000 t is expected between 2005 and 2015, for example. According to estimates, at least 120,000 t will have already been produced by 2010. After deducting the amount required for the semiconductor industry, this would enable the production of PV modules with a total capacity of around 13 GW in 2010 (Siemer 2007, 75).

[316] Press report from 24 February 2009: “First Solar Passes $1 Per Watt Industry Milestone”. http:// www. finanznachrichten. de/nachrichten-2009-02/13200068-first-solar-passes-donar-1-per-watt- industry-milestone-004.htm (accessed August 9, 2009).

[317] Q-Cells plans to base a large proportion of its ceil production on UMG silicon and has entered into a long-term supply agreement up to 2018 with the Chinese company LDK Solar for 20,000 t ofUMG silicon. Seehttp://in. reuters. com/finance/stocks/keyDevelopments? symbol=LDK. N&pn=4 (accessed, June 18, 2010).

[318] SMA company presentation from May 6, 2008.

[319] Cadmium telluride (CdTe), amorphous silicon (a-Si), microcrystalline silicon (m-Si), copper indium diselenide (CIS), copper indium gallium diselenide (CIGS), copper-indium-gallium-sulfur (CIGSSe).

[320] The electricity production costs of the Spanish power plants are in the region of 20-25 cents/ kWh. The aim is to cut these costs to between 15 and 18 cents/kWh. Feed-in compensation in Spain is 27 cents/kWh. The next generation of systems in California and Egypt are expected to reduce electricity production costs to as little as 8-9 cents/kWh (Pecka 2008, 22).

[321] The Chamber of Agriculture was responsible for processing these grants.

[322] According to information provided by the Central Association of the German Electrical Trade (ZVEH), services provided by craft enterprises account for between 25% and 30% of the costs of a solar power system (press release from 3 May 2008).

[323] The Financial Times estimates the electricity generating potential of geothermal energy world­wide at one billion MWh, which amounts to ten times the world’s total energy consumption (Janzing 2004a, 62). There is also great potential in Germany: in theory, the heat reserves deep below the Upper Rhine Valley are sufficient to cover all of Germany’s energy needs for over 1,000 years (Janzing 2004b, 72-73).

[324] http://www. izt. de/pdfs/SKEP/SKEP_AP5_Technologiereport. pdf (accessed July 24, 2009).

[325] There are currently some two dozen geothermal plants in Germany with heat outputs ranging from 100 kW to 20 MW. Thermal water generally has a high salt content. Consequently, the water transported from deep within the earth cannot be directly fed into the heating circuit. It is con­ducted via corrosion-resistant pipes through a heat exchanger, where it releases its energy to the heating circuit. The water is subsequently pumped back into the bedrock via a second borehole.

[326] The so-called “Deep Geothermal Group” coined this umbrella term. Work is still in process to produce a conclusive definition (see PK query Tiefe Geothermie 2007).

[327] Figures published in the relevant literature vary greatly.

[328] Hot springs played an integral role in the societies of the ancient Romans, Greeks, Mexicans, Japanese, Turks and the Maoris in New Zealand. In addition to their warmth, they were also ascribed healing powers.

[329] http://www1.eere. energy. gov/geothermal/history. html (accessed July 24, 2009).

[330] www. geothermie. de/egec_geothernet/menu/frameset. htm (accessed July 24, 2009).

[331] Clarification of Fig. 6.3: tapping geothermal energy only made sense in conjunction with a heating net­work. However, in the mid-1980s, Helmut Kohl’s new government also ceased to provide support for cogeneration of heat and power and district heating networks. Funding for the geothermal project in Bruchsal (which was relaunched in 2008) was discontinued primarily for economic reasons – an American settle­ment had opted for a gas-powered heat supply system (see Section An insufficient flow of knowledge then also led to Germany’s withdrawal from the two projects abroad. This explains the sharp decline in funding in the mid-1980s. After his appointment as head of the division responsible for renew­able energy within the Federal Research Ministry in 1985, EisenbeiB endeavored to at least resume research into HDR technology in Germany. The German-French project in Soultz-sous-Forets enabled implementation of this goal from 1987. However, in the 1990s geothermal energy was seen to hold little promise in view of the geological conditions in Germany (EisenbeiB 2009, pers. comm.; see Section This situation did not change until a new government came to power in 1998.

[332] The Federal Research Ministry and later the Federal Ministry for the Environment supported the project in Bad Urach.

[333] Under the direction of the Federal Institute for Geosciences and Natural Resources, the HDR project in Falkenberg (1978-1986) conducted basic studies on hydraulic stimulation in crystalline rock.

[334] Cf. Geothermische Energie (2002, 7). The Federal Future Investment Program was a federal economic stimulus package to improve economic stability and employment. It was financed by the sale of UMTS licenses.

[335] The most significant projects were: Neustadt-Glewe, Neuruppin, Pritzwalk, Stralsund, Schwerin, Velten, Rostock, Pasewalk, Ludwigslust, Neustrelitz, Nauen, Hohennauen.

[336] The Geothermie Neubrandenburg GmbH can provide access to all documentation.

[337] Today’s NordLeder GmbH is part of the Mollergroup.

[338] The company’s shareholders are the town of Neustadt-Glewe (47%), WEMAG AG Schwerin (45%) and GTN Geothermie Neubrandenburg GmbH (8%). In GDR times VEB Geothermie Neubrandenburg operated the plant.

[339] Karl Walter Hirche was Minister for Economics, SMEs and Technology from 1990 to 1994 in the state of Brandenburg.

[340] An annual trade fair and showcase for industrial technology that takes place in Hanover.

[341] The association was initially called the Geothermische Vereinigung e. V. (GtV) but was later renamed the Geothermal Association – Federal Association of Geothermal Energy (Geothermische Vereinigung – Bundesverband Geothermie e. V. – GtV-BV) (see Section

[342] See http://www. gfz-potsdam. de/portal/ (accessed July 24, 2009).

[343] However, according to information provided by the Federal Ministry for the Environment, it will not be possible in future to sustain this huge increase in allocated funding (see BMU 2007a, 33).

[344] 4.8 million euros came from the Federal Environment Ministry’s Environmental Demonstration Program. Furthermore, research funding amounting to 1.2 million euros will enable Geothermie Neubrandenburg GmbH and GGA Hannover to provide geoscientific support.

[345] The Federal Ministry for the Environment provided funding amounting to 1.6 million euros to support the development of the new deep drilling rig Herrenknecht Vertical Terra Invader 350 (Binder & Ruder 2008, 9). The Ministry has also allocated 4.7 million euros to the development of a feed pump by the company Flowserve, which is designed to meet the special requirements of geothermal energy. The Ministry has granted 163,000 € to a research project conducted by the TU Hamburg to optimize plant technology (see BMU 2007a, 34-35).

[346] The GGA was renamed the Leibniz Institute for Applied Geophysics (LIAG) in 2008.

[347] The sources for the legal information used in this chapter are given in the Index of Legal Sources.

[348] The Kreditanstalt fur Wiederaufbau (KfW) is a government-owned development bank.

[349] When exploration proves unsuccessful, the investor is released from the obligation to repay the remainder of the loan from that point in time. The exploration risk of the respective deep geothermal project – and thus its eligibility for financing – is established prior to granting the loan. In addition to the standard loan interest, the promotional loans include a “risk premium” to cover the explora­tion risk. In return, the investor receives an expert review and supervision of their deep geothermal project prior to and during the drilling phase.

[350] http://www. izt. de/pdfs/SKEP/SKEP_AP5_Technologiereport. pdf (accessed July 24, 2009).

[351] Geothermal plants cool and re-inject the brine pumped up to the surface during the power genera­tion process. There is, therefore, no need to create a separate disposal infrastructure. Brine is re­injected in order to prevent depletion of the water supply. It is possible to pump all substances back into the bedrock without causing any environmental damage or related costs (Fromme 2005, 186).

[352] Supported by funding from the Federal Ministry for the Environment, the GGA-Institut Hannover is currently constructing a digital, Internet-based ‘geothermal information system’ which aims to reduce exploration risks (Jung 2007, 5).

[353] The unfinished borehole was sealed and the drilling tower dismantled (Janzing 2004b, 73). Research is underway to establish whether exploration in Bad Urach can be resumed with the participation of EnBW (Energie Baden-Wurttemberg AG) and the municipality of Bad Urach.

[354] Erdwarme Kraft GbR’s shareholders are Vattenfall Europe Berlin AG und Co. KG (94.26%) and WEMAG AG Schwerin (5.74%). See http://www. erdwaerme-kraft. de (accessed July 24, 2009).

[355] The amount of heat generated (primarily using heat pumps) totals 1,586 GWh.

[356] http://www. geox-gmbh. de/de/Aktuelle_Meldungen. asp? Id=259 (accessed July 24, 2009). The municipality of Insheim is situated next to Landau and it will probably become the site of the third plant in the Upper Rhine region. Drilling of two boreholes is already complete. Another project is in the pipeline in the municipality of Rulzheim, also located in the Palatinate.

[357] http://www. geothermieprojekte. de/projektbeispiel-unterhaching-1 (accessed July 24, 2009).

aThe plant in Neustadt-Glewe proved for the first time that it was possible to generate electricity from geothermal sources in Germany, which played a very significant role in the political debate surrounding compensation payments during the process of amending the EEG in 2004 a power plant with an output of max. 25 MWel consisting of several units in Eberswalde to the north-east of Berlin. The plant plans to extract geothermal heat from depths of 5,000 m.

Updated: September 27, 2015 — 5:47 am