Germany's new "Energy Concept": Renewable, grid goals through 2050

Last week Germany published guidelines for its energy road map through 2050. The goal is a market-oriented energy policy, with room to capitalize on technological advances.

Renewables are a core part of this Energy Concept document. In it, Germany’s Federal Ministry for the Environment (Bundesministerium fur Umwelt, or BMU) emphasized that renewables will gradually replace conventional energy sources. Also, nuclear power will enable this shift.

More about this plan…

By Alicia Carrasco, eMeter Director for EMEA Regulatory Affairs

Target: By 2020, 35% of Germany’s power needs will be supplied by renewables; and an amazing 80% by 2050.

Additional goals:

• Offshore wind: 25 GW by 2030, financially supported by a €5 billion special credit plan from the redevelopment agency, plus a future higher tariff.

• Onshore wind: The federal government will work with the German states and local communities to identify areas where new wind farms may be developed, as well as adopting more favorable terms for extending the lives of existing wind farms (“repowering”).

• Solar: Incentives are being developed to promote residential rooftop solar panels. The electricity generated by those panels will be used on site, rather than sold back to the grid. The intent is to reduce reliance on electricity supplied via the grid.

• Bioenergy: Sustainable bioenergy plants will be supported with tax advantages. This aims to increase bioenergy power plant availability as a mechanism to balance fluctuations in wind and solar power supply.

Germany’s Energy Concept covers nine areas of action:

• Renewable energy as a cornerstone of future energy supply.

• Energy efficiency as a key factor.

• Nuclear power and fossil fuel power plants.

• An efficient electric grid infrastructure and integration of renewable generation.

• Energy upgrades for existing buildings and energy efficient new construction.

• The challenges of electric vehicles.

• Energy research: innovation and new technologies.

• Energy supply in a European and international context.

• Acceptance and transparency for energy users and the energy industry.

Among these, BMU intends to set up a “Network for Sustainable Energy” that will facilitate open dialogue, information exchange, and the development of new concepts to help meet the challenges of power grid expansion.

Germany’s Energy Concept mentions no specific target for smart meters, but it does note that smart meters are the most important energy infrastructure component currently lacking for consumers. Beginning in January 2011, German energy retailers also must offer dynamic pricing, and smart meters are needed to implement this.

The German federal government plans, following consultation, to issue new regulations for smart meters and advanced communication and software technologies (such as eMeter’s Energy IP platform).

The Energy Concept’s objectives are aligned with the minimum requirements outlined in a position paper published last summer by Germany’s Federal Network Agency.

Will Germany get to 80% renewable eneryg suppl;y in just 40 years? We’ll watch with interest!