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Germany

KEY ISSUES

Germany is an EU leader in wind utilisation, PV, solar thermal installations and biofuel production. Its onshore wind capacity covers approximately 50 per cent of the total installed capacity in the EU. A stable and predictable policy framework has created conditions favourable to RES penetration and growth. FITs for RES-E have proven a successful policy, leading to a very dynamic market for RES.

KEY SUPPORT SCHEMES

With the aim of promoting RES-E, Germany has introduced the following schemes through its Renewable Energy Act of 2004:

FITs for onshore wind, offshore wind, PV, biomass, hydro, landfill gas, sewage gas and geothermal; and
Large subsidised loans available through the DtA (Deutsche Ausgleichsbank) Environment and Energy Efficiency Programme.

Table I.10: Key Support Schemes in Germany

Technology	Duration	Tariff	Note
Wind onshore	20 years	83.6 €/MWh 52.8 €/MWh	For at least 5 years Further 15 years, annual reduction of 2 is taken into account.
Wind offshore	20 years	91 €/MWh 61.9 €/MWh 30 – 130 €/MWh	For at least 12 years Further 8 years, annual reduction of 2 is taken into account.
Solid biomass and biogas	20 years 20 years	81.5 – 111,6 €/MWh 64.5 – 74.4 €/MWh additional 20 €/MWh	Annual reduction of 1.5 Annual reduction of 1.5 In CHP applications only
Hydro power up to 5 MW	30 years	66.5 – 96.7 €/MWh	Lower FITs also for hydro plants up to 150 MW
Geothermal	20 years	71.6 – 150 €/MWh	Annual reduction of 1 from 2010 on
PV	20 years	406 – 568 €/MWh	Annual reduction of 6.5; prices vary depending on the location.

FUTURE TARGETS

Overall, Germany would like to register a 10 per cent RES share of total energy consumption in 2020. The RES-E targets set for Germany are 12.5 per cent of gross electricity consumption in 2010 and 20 per cent in 2020. Substantial progress has already been made towards the 2010 RES-E target. Germany’s RES-E share in 1997 was 4.5 per cent, which more than doubled to 9.46 per cent by 2004.

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