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“Energiewende” – The German Energy Transition
Ten German lessons for Canadian energy policy
I. Action on Climate Change
II. Leadership in Renewable Technologies and the Green Economy
III. No need for coal
IV. Nuclear phase-out
V. Conservation and efficiency
VI. Buildings (Cogeneration, Heating and ‘Passive-House’)
VII. Grid Upgrade, Flexible Power
VIII. Co-op, democratic focus; community buy-in
IX. Emissions trading and environmental taxation
X. Energy security
Instructor: David Athersych
Class: ESET 680
Date: March 27th
, 2015
Student: Michael Clarke
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1.0 – Table of Contents
1.0 – Table of Contents...........................................................................................................................................................2
2.0 – Introduction to this Report ............................................................................................................................................3
3.0 – Background Information on the ‘Energiewende’...........................................................................................................3
4.0 – Ten German Lessons for Canadian Energy Policy ..........................................................................................................4
I. Action on Climate Change..........................................................................................................................................4
II. Leadership in Solar, Wind and the Green Economy ...................................................................................................6
III. No need for coal.......................................................................................................................................................11
IV. Nuclear phase-out....................................................................................................................................................12
V. Conservation and efficiency......................................................................................................................................13
VI. Buildings (Cogeneration, Heating and ‘Passive-House’) ..........................................................................................14
VII. Grid Upgrade, Flexible Power ..................................................................................................................................16
VIII. Co-op, democratic focus; community buy-in...........................................................................................................18
IX. Putting a Price on Carbon.........................................................................................................................................19
X. Energy security..........................................................................................................................................................20
5.0 – Summary ......................................................................................................................................................................21
6.0 – References and Biography ...........................................................................................................................................22
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2.0 – Introduction to this Report
For the last decade, Germany has been the undisputed world leader in the advancement of wide-scale, renewable
energy adoption. This process has been called the ‘German Energy Transition’, or ‘Energiewende’.
This report will aim to explain what Energiewende is, how it works, why it has been successful, and what challenges lay
ahead. The report will examine the specific effects that the Energiewende has had upon the German economy,
environment and society. Also explored will be the way forward for Canada, following the German example. Finally, the
report will summarize all topics covered thus far, and suggest that Canadian energy policy be further modelled upon the
German Energiewende model.
This report is broken up into ten different sections outlining ten different categories where Canadian energy policy may
take its cue from Germany:
3.0 – Background Information on the ‘Energiewende’
What is the ‘Energiewende’?
The ‘Energiewende’ or ‘German Energy Transition’, is the ongoing process by which Germany is shifting from gas, coal,
oil and nuclear power generation to renewable sources like wind, solar and biomass. The main goals of the
‘Energiwende’ are to decarbonize energy supply and reduce demand by means of conservation and greater efficiency.
Why do this?
There were several pertinent factors that led to the switch to renewable energy and conservation:
 Fighting climate change
 Reducing energy imports; improving energy security
 Stimulating technological innovation and the green economy
 Eliminating the risks of nuclear power
 Strengthening local economics and providing social justice
These topics are further described beginning on the next page.
I. Action on Climate Change
II. Leadership in Renewable Technologies and the Green Economy
III. No need for coal
IV. Nuclear phase-out
V. Conservation and efficiency
VI. Buildings (Cogeneration, Heating and ‘Passive-House’)
VII. Grid Upgrade, Flexible Power
VIII. Co-op, democratic focus; community buy-in
IX. Emissions trading and environmental taxation
X. Energy security
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4.0 – Ten German Lessons for Canadian Energy Policy
I. Action on Climate Change
“In 2011, a survey found that 66 percent of Germans believe that climate change is a “very serious” problem.”
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 8)
At the beginning of the Industrial Revolution, the atmosphere had 280 parts per million (ppm) of carbon dioxide. Now,
CO² concentrations are approaching 400 ppm. If the necessary steps are not taken expeditiously, a worldwide
temperature rise of 2°C (a critical milestone) may occur as soon as 2030. Carbon-addicted humanity seems not only to
be heading straight for a brick wall of climate upheaval, but in some cases, blissfully accelerating towards it.
Germany bears the burden of being one of the country’s most responsible for increased planet-wide carbon emissions.
For many decades, Germany has been a leading industrialized nation whose industry and electricity is heavily reliant on
coal. Through its economic growth, Germany has inadvertently sped up the mechanisms of climate change. This will
have the greatest impact on those less developed countries who are least prepared to cope with climate change.
Germany has recognized and is meeting this responsibility through 1) a commitment to international climate funding;
and 2) the energy transition, or “Energiewende”.
“Germany is the second largest donor of financing for climate protecting worldwide. German Climate Funds
promote action to mitigate climate change by enabling efficiency measurements, funding renewables, electric
mobility, etc.”
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 53)
Long-term, comprehensive energy and climate targets set by the German government in 2010
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 17)
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“Relative to 1990, Germany reduced its carbon emissions by 25.5 percent at the end of 2012, thereby
overshooting its target for the Kyoto Protocol of 21 percent for the end of 2012. But Germany aims to go further,
with targets of a 40 percent reduction by 2020 and an 80 to 95 percent reduction by 2050.”
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 9)
While an 80-95 percent reduction in carbon emissions by 2050 may seem ambitious, Germany has so far proven capable
of meeting ambitious goals. Despite a 22% reduction in GHG emissions, Germany has been able to increase its GDP by
28% from 1991 to 2012. This proves the economic validity of their energy transition process, and should serve as a
model for Canada, as well as other countries.
GDP vs GHG in Germany, 1991-2012
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 8)
“(A 2011)… survey found that 79 percent of Germans believe that energy efficiency and combating climate
change are good for economic growth and can create jobs.”
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 8)
Germany has surpassed their Kyoto emissions reduction target of 21% (by
2012) by achieving a 25.5% reduction (by the end of 2012), as compared to
1990 emission levels.
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II. Leadership in Solar, Wind and the Green Economy
“In 2009, another survey taken among 378 businesspeople, researchers, and politicians in Germany (…) found
that more than four fifths believed that the pioneering role that Germany has played in reducing greenhouse gas
emissions would lead to technological leadership.”
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 8)
Germany vs Rest of the World (2012); Solar and Wind capacity
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 23)
Share of renewables in Germany’s electricity generation (2013)
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 28)
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Germany has been a world leader in the deployment of PV deployment, despite relatively modest solar resources. When
compared to Canada, it can be seen that Germany has quite meager solar insolation, and yet, they have achieved
tremendous progress harnessing this limited potential.
Canada vs Germany Solar Resource Potential (Dec 2010)
http://www.cansia.ca/sites/default/files/pdf/solar_vision_2025.pdf
Despite their solar resource disadvantage, Germany has significantly developed its solar capacity. In 2013, it lead the
world with an installed capacity of 33 GW’s of PV, 27% of the world’s total solar capacity. This compares to Canadian
capacity of 1.2MW, which totaled less than 1% of world capacity.
Solar Capacity by Country; 2013
http://en.wikipedia.org/wiki/Solar_power_by_country (modified)
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The comparison remains true for wind development as well. Despite having vastly lower wind resources than Canada
(less than 5% of Canadian potential), Germany has mightily outpaced Canada, and have deployed fourfold the wind
capacity that Canada has.
Canada vs Germany Wind Resource Potential
http://www.pnas.org/content/106/27/10933.full.pdf (modified)
Canadian vs German wind capacity (2014)
http://www.pembina.org/reports/feed-in-tariffs-factsheet.pdf (modified)
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Wind Capacity by Country; Dec 2014
http://en.wikipedia.org/wiki/Wind_power_by_country
The Germans have developed their solar and wind capacity through a Feed-In-Tarriff system, which was emulated in
Ontario. In fact, the Ontario Green Energy Act (2009) was based on the German Renewable Energy Act. The German law
specified that renewables had priority of purchase on the grid, and that renewables must receive sufficient
compensation to provide adequate return. The high level of investment security and the lack of significant red tape
made the German Act so successful. For example, the standard German contract for a Feed-In Tarriff is two pages,
where the equivalent U.S. Power Purchase Agreement (PPA) is 70 pages. If the Ontario MicroFit program were to
streamline itself as much as the German FIT program, there would likely be increased interest and adoption rates.
In Germany, wind power has become the most inexpensive source of new renewables generation. PV is now
competitive with conventional energy generation. Feed-in Tariffs do no lead to unnecessarily high prices. Germany has
the cheapest solar power in the world because of the investment certainty and market maturity. German politicians
have been rushing to reduce the solar feed-in tariffs to keep up with falling prices. Solar tariffs have fallen from around
50 cents to less than 10 cents (for big arrays), and less than 14 cents from the smallest rooftop arrays. The rate will
continue to drop until 52 GW’s of PV have been installed in Germany, at which time FIT for PV will be phased out.
Forecast of Power Generation Cost in Germany (up to 2030)
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 9)
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One common criticism that has levied against the German energy transition has been the increase in energy cost for the
consumer. This increase has been attributed to high subsidies for wind and solar. While a popular and logical argument,
it doesn’t tell the whole story. If we consider the local added value of renewable capacity, the environmental damage
prevented by their deployed, and other factors, we can see that German is effectively saving 7 billion euros a year
through renewables. Renewables become the most economically attractive option when commonly disregarded
externalities are brought into the cost-benefit equation.
Renewables save Germany more than 7 billion euros per year (2011)
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 10)
Employment in Germany in renewable and conventional energy sectors (2005-2011)
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 11)
“These figures represent “gross
job creation”, meaning the
absolute number of jobs that
have been added. A thorough
study of the German market
estimates a net job creation of
around 80,000, rising to
100,000-150,000 in the period
from 2020 to 2030. One reason
why renewables have such a
tremendous positive impact on
net job creation is that
renewable power directly
offsets power from nuclear
plants, and very few people
work in the sector.”
“The Energy Transition
(Energiewende) boosts
green innovations, creates
jobs, and helps Germany
position itself as exporter
of green technologies”
‘Energy Transition’ –
Heinrich Boll Stiftung, Nov
28, 2012. (Page 10)
The German energy
transition offers evidence
that renewables create
more jobs than
conventional energy does.
Nearly 400,000 Germans
work in renewable energy.
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III. No need for coal
Lignite, or hard coal, is widely mined and burned in Germany, but it’s three times more carbon intensive than natural
gas. Coal can’t ramp very well with demand, so it’s not as effective for peaking as natural gas. The German conventional
energy sector was 40% coal in 2000, and expects to be 10% by 2050. The long term plan for coal in Germany is a
reduction to zero.
Installed conventional electricity generation capacity in Germany (2000-2050)
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 20)
Carbon Capture and Storage (CCS) has been rejected as an effective long term solution in Germany. It has been deemed
too expensive and unsafe, and best not pursued. Carbon capture reduces the efficiency of the coal power plant, it
increases fuel costs and storage has high inherit risk. A number of recent coal projects have been cancelled for reasons
of local protest, difficulty in procuring water rights and decreased profitability in light of the boom in renewables.
German communities have voiced their opposition to CCS: people don’t want repositories of stored pollutants near
where they live. The German states have the political authority to veto any plan to build a carbon capture storage
repository on their land. This ensures that is highly unlikely such a repository will ever be built in Germany, negated the
possibility of widespread CCS implementation.
“We have to be realistic. We cannot store carbon dioxide underground against the will of the population. And I
do not see any political acceptance in a single German state for CCS technology with hard coal and brown coal
power plants.”
German Energy Minister Peter Altmaier, July 2012
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IV. Nuclear phase-out
While Canada, and specifically Ontario, have embraced nuclear power, the Germans have historically not. In fact,
German protest to nuclear power goes back as far as the 1970’s, and it’s phasing out had always been part of the
Energiewende. The timetable was drastically moved forward after Fukushima. The disaster lit a spark of protest against
nuclear power in Germany that burned all the way to the parliament. Public pressure forced a resolution to shut down,
and set concrete decommissioning dates for nine out of the country’s 17 nuclear reactors.
Declining German Nuclear Capacity (2000-2022)
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 39)
Germany sees three main unresolved disadvantages to nuclear power:
 The Risks (Proliferation, Meltdowns)
 The Costs (‘Unbankability ’ – No banks finance nuclear plants; only governments do)
 The Waste (Radiation for waste storage; passing on the burden to next generations)
Additional concerns arise with the limited worldwide uranium supply. At current rates of consumption, uranium for
conventional light-water reactors will only be available at affordable prices for the next 30 years. At that time, nuclear
power as conventionally generated will likely not be the low cost option it has historically proven to be.
The worldwide future of current generation nuclear is dim: more plants are scheduled to be taken off-line over the next
ten years than are expected to be put online. Even if we were to triple the number of operational nuclear plants by 2050
(35 per year), global carbon emissions would only effectively be reduced by 10%. That outcome is too little, too slow, too
expensive, with too much inherit risk
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 12)
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V. Conservation and efficiency
Amory Lovins, acclaimed environmental scientist, has called the concept of conservation “a change in behavior based on
the attitude ‘Do Less to Use Less’. A Megawatt of power saved through conservation is a megawatt not needed to be
generated. He has nicknamed this ‘avoided energy’ as the ‘Nega-watt’. As important adding renewable capacity is to the
German energy transition, equally important is the simultaneous reduction in consumption.
Reduced energy consumption; increased renewable capacity (German energy plan, 2005-2050)
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 18)
One major pillar of this reduced consumption is called the ‘Energy-related Products Directive (ErP), formally the
‘Ecodesign Directive’. This piece of Brussels based regulation sets minimum efficiency standards, and considers the
lifecycle environmental impact of such energy-consuming devices as:
 Consumer electronics
 Refrigerators
 Electric Motors
 Windows
 Showerheads, and more.
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 51)
One of the most impactful results of the ErP Directive was the regulation of standby and off-mode power losses. The
Directive requires that power loss from devices in standby mode must be no more than one watt. This threshold will be
further decreased to 0.5 watts in the near future.
The ErP directive has been the main regulatory instruments for cutting off from the market those products with the
worse environment performance. This has resulted in banning the sale of incandescent light bulbs for domestic lighting.
“By 2020, phasing out incandescent light bulbs will result in energy savings (…) equivalent to (…) six old coal
power plants. The (…) regulation for electric motors will even lead to a reduction (…) equivalent to 20 coal
power plants.”
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 51)
By 2020, the directive is expected to reduce power consumption within
the EU by 12% (compared to no Directive).
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VI. Buildings (Cogeneration, Heating and ‘Passive-House’)
Cogeneration is when part of the waste heat from a power generator is recovered, increasing overall efficiency of fuel
consumption. Cogeneration is much more efficient than separate power and heat generation. Additionally, heat is much
easier to store than electricity is, which can provide a ramping ability to offset peak heating demand. Germany wants to
get 25% of its power supply from cogeneration units by 2020. The ‘Cogeneration Act’ was therefore introduced in 2002
to incentivize cogeneration units relative to system size, irrespective of the feedstock. Owners receive upfront incentives
for the purchase of the cogeneration units, plus ongoing bonus payments for electric power produced by the unit.
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 48)
Comparing cogeneration to conventional ‘coal-electricity with oil-heating’
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 47)
In 2009, German passed the Renewable Energy Heating Act. This piece of legislation aimed to increase the share of
renewable heat to 14% by 2020. Owners of new buildings are now obligated to get a certain share of their heat from
renewable energy. The owner chooses how best to meet these obligations. Options could include renewables, more
insulation, and heat from district heating networks or cogeneration units. The program was temporarily cut during the
last economic crisis, however it is now back in place.
A sister program to the Act supporting existing buildings is called the Market Incentive Program (MAP). The program
offers financial support for owners to purchase energy related retrofits. Such retrofits can include:
 Small and large solar heat collectors (incentives based on collector surface area)
 Bio-mass-fired furnaces with automatic feed systems (wood pellets)
 Highly efficient firewood gasifiers (upfront incentive)
 Efficient heat pumps (upfront incentive)
 Visualization services for such systems
Similar programs to MAP offer incentives for geothermal, district heating, even the potential for solar power batteries.
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 48)
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Buildings consume 40% of all generated German energy, mostly due to heating. Oil and gas dominate the heating sector
with a combined share of three-quarters of the market. It is a big slice of the pie to reduce, but doing so would have a
tremendous impact, so it is a crucial area of focus for the German energy transition. This focus on reducing building
heating loads began as early as 1990 with the development of highly efficient ‘Passive Houses’.
German building energy demand standards
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 51)
Passive houses allow the complete negation of heating systems, even in Germany’s cold climate. Heat from the kitchen
and warm bodies are enough to warm the house, even during winter. Heating expenses are cut by an estimated 90%
compared to a conventional new building.
The houses utilize a combination of low-tech and high-tech building methods. Homes are built facing the South in
Germany, and their southern facades have large glazed surfaces to allow solar heat gain. In the summer, overhanging
balconies stop the sun’s rays from entering. Deciduous trees are also planted on the southern side of the build to
provide shade in summer, but sun in winter when they defoliate. High-tech building methods include triple-glazed
windows, which allow light and heat to enter, but prevent heat from exiting the building. Passive houses also have
ventilation systems with heat recovery (HRV’s), to capture was heat and prevent mold build up
Passive houses are an excellent example of how Germany’s energy transition will produce much higher standards of
living even as energy consumption is reduced and made more sustainable. They have become the standard for new
building construction in some German cities (like Frankfurt).
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 52)
“The EU will require that all houses constructed starting 2020 be “nearly zero-energy homes,” essentially making
German passive house the standard within Europe.”
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 18)
‘Passive House’
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VII. Grid Upgrade, Flexible Power
Germany has gone from 3% renewable power in the 90’s to more than 25% in 2015 without any major changes to its
electricity grid. However, to achieve the ‘85% renewables by 2050’ target, major changes to the grid will be required.
Conventional vs Renewable electricity generation (2000-2050)
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 20)
Grid operators are presented with several problem when renewables become a large percentage of the grid. Firstly is
the problem with the inherent intermittency of renewable generation. The wind does not always blow, nor the sun
always shine, when and where the power is needed. Effective grid storage would be required for a renewable
dominated grid, and a number of storage solutions are possible, feasible and even proven economical:
 Pumped hydro-power storage
 Flywheel energy storage technology
 Compressed air storage in caverns or old mine shafts
Secondly, a substantial increase in distributed renewable generation presents the problem of multi-directional power
flow, not simply one way from producer to consumer. To account for this, a smarter grid is required. Special controls and
sensors will be needed to monitor the temperature and power of high voltage lines. Transformers and other devices
may be susceptible to failure in a grid dominated by renewable sources.
Finally, the ongoing argument remains whose responsibility it is to invest in the shared resource that is the electricity
grid. With distributed generation comes the requirement for increased infrastructure for renewable power to reach
consumers in cities, and the question of “who pays?” is a hot button issue. For instance, ‘double standard’ controversy
has arisen when Utilities have shown willingness to make grid upgrades for large, offshore, corporate backed wind
farms, but not for smaller, onshore, community funded projects.
One unique proposal would see Germany exporting large amounts of power for storage to Norway and Switzerland,
which have tremendous hydro-storage potential. This would require large investment to increase transmission capacity,
but the returns may be worth it. Ontario could conceivable do the same: Exporting surplus renewable energy to Quebec
for hydro storage, to be run through generators during times of high demand, high prices and low renewable output.
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 53)
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The new renewable landscape poses problems too for Germany’s four biggest power companies. They earn their
revenue through providing peak power at a large markup, with less expensive baseline power. If renewables are able to
take a huge bite out of peak demand, as solar is now doing, then the power companies will find their revenue
substantially curtailed. They will need to adapt and reconfigure their capacity to match the new reality.
Baseload power is incompatible with renewables, and will soon be a thing of the past. What will be required is flexible,
fast ramping, quickly dispatchable power generation. The graph below shows the predicted German power demand
profile for 2020. Solar provides 0% of the demand - then 90% - then 0% again over a single day. Conventional plants
ramp from 10GW to 50GW within twelve hours. Wind is highly variable. This is the energy landscape of the future.
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 53)
‘Flexible Power’ – German power demand over a week in 2012 vs 2020
[] - ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 23)
Current ‘baseload’ plants will not be sufficiently nimble to match this new power demand landscape, resembling 24/7
peak load following. Highly ramp-able turbines fueled by natural gas will be the short term solution, replaced with
sustainable biogas and renewably generated hydrogen. The long-term solution see a complete redesign of the power
market, perhaps with the introduction of a ‘strategic power reserve’: Plants held offline/idle, in good working order,
ready to quickly ramp up when needed. The solution was proposed in July 2012 by the German Environmental Agency
(UBA). Power companies would be paid for a certain amount of generating capacity maintained in service, not for the
power generated from these plants. The rest of the power market would remain undisturbed. Such is the sort of system
that will be required to meet the demands of a predominately renewable energy grid.
[] - ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 53)
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VIII. Co-op, democratic focus; community buy-in
“Local ownership of renewables provides great economic payback to investing communities. Energy efficiency
and renewables together give the poor a way around higher prices for fossil fuels.”
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 14)
Community ownership of renewable energy projects is widespread in Germany. The German word for community
ownership group, or cooperative, is “Genossenschaften”. As power producers, the electricity they sell back to the grid
has priority over corporations. The German feed-in tariff system, upon which our Canadian MicroFIT program was
based, is conducive to community ownership of large projects. Through co-ops, ownership of the country’s power supply
shifts from large power companies to the citizenry. Co-ops are a democratizing force within Germany.
“Energy cooperatives democratize energy supply in Germany and allow everyone to benefit from the energy
transition even if they do not own their own home.”
- Head of Germany’s Solar Industry Association (BSW-Solar)
It is estimated that “energy cooperatives” have leveraged € 800 million in investments for more than 80,000 private
citizens in Germany. You needn’t own your own home to invest: shares in co-op PV projects can be as low as € 100, with
the average minimum being around € 500.
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 36)
“We cannot say who owns a particular wind farm in Germany because ownership is splintered across scores, and
sometimes hundreds, of local citizens and businesses.”
DEWI, organization that collates statistics on German wind power.
German ownership of renewables (2012)
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 34)
There have even been instances, notably in Hamburg, where citizen co-ops have successfully purchased their local utility
grid. Imagine a group of Canadian citizens purchasing a part of Hydro-One, or Kingston Utilities!
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IX. Putting a Price on Carbon
http://www.euractiv.com/sections/energy/after-oil-price-crash-its-time-carbon-tax-311377
The European Union has put a price on carbon, which is something Canada is still debating doing. The European
initiative, called the ‘Emissions Trading System’ (ETS), caps greenhouse gas emissions for the long term. The only method
by which carbon producers can overshoot their emissions cap is through the purchase of ‘carbon offset’ certificates.
These credits give emissions allowances to companies in different sectors. This policy is the main instrument in the EU to
lower greenhouse gas emissions.
The ETS has had a rocky history, and was completely revised in 2009/2010. It has been criticized for a lack of ambition,
too many loopholes, concessions to electricity and industry lobbies, unambitious targets and a lack of adjustment to
economic downturns. Some notable criticisms and design flaws have included:
 The giving out of generous volumes of free certificates to major emitters early on in the pilot phase. The major
emitters then turned around and sold those offsets to others for a profit. To correct this, certificates are no
longer be offered for free, but auctioned off.
 Too many certificates are still in circulation, diluting the intended effect of the system. The EU aims to correct
this by postponing the issuing of new certificates.
 The allowance for European companies to reduce their carbon emissions not at home, but in developing
countries. The criticism centers on the issue of outsourcing the responsibility for emissions reduction abroad,
which postpones inevitable structural changes at home. The current system allows for as much as 50%
outsourced offsets.
 The ‘price of carbon’ is too low to stimulate the required mass switch over to low carbon fuels.
Emissions trading has sometimes been viewed in conflict with the Feed-In Tariff program. If the goal is lowering
greenhouse gas emissions, then the ETS, through market forces, would presumably deliver the optimal solution. Why
then, the need to artificially incentivize certain renewables to make them more economically viable? The perceived
conflict arises from not recognizing the identical goals of renewables and carbon credits: Renewables offset gas and coal
in Germany, reducing greenhouse gases; Carbon credits financially punish large emitters, also encouraging the reduction
in greenhouse gases. The practical results of both projects are identical: the reduction in greenhouse gases. They exist
synergistically, differing only in means and method.
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 53)
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X. Energy security
In 2012, Germany spent 87 billion euros on energy imports. It imports more than 70% of its energy, including uranium.
Germany is by far the biggest importer of gas from Russia. With the recent troubles in the Crimea and the Ukraine, and
the sanctions levied on Russian, it might be conceivable that Russia halt the exportation of gas to Germany.
German energy imports, 2012
‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 14)
As worldwide demand for energy continues to rise, it will outstrip supply in a fossil fuel based world. The more energy a
country can get from within its own borders, the more protected they are from outside influence or political coercion.
Improving energy efficiency, conservation measures and renewable energy generation can all contribute to reduced
imports and enhanced energy security. By reducing energy imports, Germany is less vulnerable to the rising prices for
fossil fuels and to political influence from abroad.
Domestic production of renewable gas would make supply more certain and less politicized. Reducing the consumer-
supplier political dynamic would contribute to harmony between nations. What need would there be for wars over
resources if one’s own renewable energy economy was vital? Just consider the affect the Saudi’s have had on the oil
sands developments. Canada, by investing heavily into fossil fuel projects, has made herself vulnerable to outside
influence, and from the fluctuations of the oil price. This was the way of the past. The future of energy security, and the
long-term survival of the human species, is centered on clean, economically viable, renewable energy sources. Germany
has lead the charge, and now Canada must follow them through the breach on that noble project; the grand enterprise
of the twenty-first century.
http://blog.lufft.com/en/heading-for-the-future-with-renewable-energy/
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5.0 – Summary
Germany has taken the lead into the renewable energy future with their ‘Energiewende’, or Energy Transition, and
Canada now has the opportunity to follow.
Recognizing the grave threat climate change poses, Germany has instituted drastic measures to reduce her carbon
emissions. In 2050, Germany plans to reduce carbon emissions by 80% compared to 1990 levels, and have 80% of its
energy derives from renewable sources. They plan to do this through a monumental increase in PV and wind capacity, all
while reducing coal and phasing out nuclear power. Increased building efficiency, conservation measures and
cogeneration will also make a significant contribution to this transition. Novel storage methods will be developed,
perfected and made financially lucrative. A continued focus on community ownership and involved ensures the energy
transition is a democratic movement. Increased renewable capacity at home reduces the need for energy importation,
increasing security and lessening tensions over resources.
Germany aims to prove by 2050 the economic and practical viability of a modern, industrial economy deriving most of its
energy from renewable sources. This author shall do his utmost, in whatever capacity he finds himself, to aid in the
success of that transition, whether here in Canada, in Germany, or wherever in the world he finds himself between 2015
and 2050. It is a worthwhile enterprise to dedicate one’s life to.
http://www.futuretimeline.net/21stcentury/images/energy-islands-large.jpg
22 | P a g e
6.0 – References and Biography
Title Page Pictures: http://www.unternehmerakzente.de/wp-content/uploads/2012/02/Energiewende_700_300_artikel.jpg
http://www.zeit.de/2011/20/Energiewende-Interview-Merkel
ENERGIEWENDE MAIN SITE - http://energytransition.de/
NRCAN Report -
https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/www/pdf/publications/emmc/renewable_energy_e.pdf
Greater Toronto Area – Renewable Energy Overview - http://www.greatertoronto.org/wp-
content/uploads/2014/04/GTA-Renewable-Energy-Overview-for-Italian-businesses.pdf
Failure of Canada to meet its obligations - http://www.pembina.org/media-release/pembina-reacts-to-us-china-climate-
announcement
Cansia Roadmap 2020 - http://cansia.ca/sites/default/files/cansia_roadmap_2020_final.pdf
Cansia Roadmap 2020 (present) - http://cansia.ca/sites/default/files/20140620_kpmg_roadmap_presentation_final.pdf
Low cost solar in 7 days, not 180 - http://cleantechnica.com/2015/03/05/low-cost-solar-7-days-not-180-days/
Canada future of Wind - http://canwea.ca/wind-energy/national/
CanWea WindVision - http://canwea.ca/pdf/windvision/Windvision_summary_e.pdf
CanWea WindVision (Background)- http://canwea.ca/pdf/windvision/Windvision_backgrounder_e.pdf
Best Practices for Community involvement in Wind energy - http://canwea.ca/pdf/canwea-communityengagement-
report-e-final-web.pdf
Renewable energy coops - http://www.brantfordexpositor.ca/2014/12/18/renewable-energy-co-ops-springing-up-
everywhere
Renewable energy coops (2) - http://www.cooperativedifference.coop/assets/files/National/RE_Co-
op_Review_RegulatoryScan_Jan2012.pdf
Pembina (Solid Energy Policy Resource) =
http://www.pembina.org/re
http://www.pembina.org/re/work/municipalities
http://www.pembina.org/re/work/first-nations
http://www.pembina.org/re/work/developing-countries
http://www.pembina.org/re/work/provincial-policy
Ontario’s LTEP - http://powerauthority.on.ca/sites/default/files/planning/LTEP_2013_English_WEB.pdf
Facts about Photovoltaics in Germany - http://www.ise.fraunhofer.de/en/publications/veroeffentlichungen-pdf-dateien-
en/studien-und-konzeptpapiere/recent-facts-about-photovoltaics-in-germany.pdf
Two energy lessons from Germany - http://blogs.scientificamerican.com/plugged-in/2014/10/07/energiewende-two-
energy-lessons-for-the-united-states-from-germany/
23 | P a g e
Energy Transition - http://en.wikipedia.org/wiki/Energy_transition_in_Germany#cite_note-18
Separating Fact from fiction in Germany -
http://blog.rmi.org/separating_fact_from_fiction_in_accounts_of_germanys_renewables_revolution
Singapore energy efficiency example - http://blog.rmi.org/blog_2015_03_05_energy-
efficiency_insights_from_singapores_marina_bay_sands
Reinventing Fire - http://www.rmi.org/ReinventingFire
Gamechangers(1) -
http://blog.rmi.org/blog_2014_09_30_three_energy_gamechangers_for_china_and_the_world_part_1
Gamechangers(2) -
http://blog.rmi.org/blog_2014_10_01_three_energy_gamechangers_for_china_and_the_world_part_2
Amory Lovins -
http://blog.rmi.org/blog_2014_12_16_joining_forces_to_combat_climate_change_and_reignite_the_global_economy
Germany leads the way - http://www.worldwatch.org/node/5430
Renewable energy lessons from Germany - http://www.renewableenergyworld.com/rea/blog/post/2014/10/7-
renewable-energy-lessons-from-germany
Germany National Renewable Energy Plan -
http://en.wikipedia.org/wiki/Germany_National_Renewable_Energy_Action_Plan
Expensive gamble of Germany renewables - http://www.wsj.com/articles/germanys-expensive-gamble-on-renewable-
energy-1409106602
Economist con article - http://www.economist.com/node/21559667
The Drake Landing Solar Community in Okotoks, Alberta – http://www.dlsc.ca/reports/DLSC_SHC_2012_final.pdf
More stuff - http://reneweconomy.com.au/2015/graphs-of-the-day-the-success-of-germanys-energy-transition-15022
http://en.wikipedia.org/wiki/Renewable_energy_in_Germany
http://www.gtai.de/GTAI/Content/EN/Invest/_SharedDocs/Downloads/GTAI/Articles/The-renewable-energy-
industry-in-germany.pdf
http://motherboard.vice.com/read/one-third-of-germany-is-powered-by-renewable-energy

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Ten German Lessons for Canadian Energy Policy

  • 1. “Energiewende” – The German Energy Transition Ten German lessons for Canadian energy policy I. Action on Climate Change II. Leadership in Renewable Technologies and the Green Economy III. No need for coal IV. Nuclear phase-out V. Conservation and efficiency VI. Buildings (Cogeneration, Heating and ‘Passive-House’) VII. Grid Upgrade, Flexible Power VIII. Co-op, democratic focus; community buy-in IX. Emissions trading and environmental taxation X. Energy security Instructor: David Athersych Class: ESET 680 Date: March 27th , 2015 Student: Michael Clarke
  • 2. 2 | P a g e 1.0 – Table of Contents 1.0 – Table of Contents...........................................................................................................................................................2 2.0 – Introduction to this Report ............................................................................................................................................3 3.0 – Background Information on the ‘Energiewende’...........................................................................................................3 4.0 – Ten German Lessons for Canadian Energy Policy ..........................................................................................................4 I. Action on Climate Change..........................................................................................................................................4 II. Leadership in Solar, Wind and the Green Economy ...................................................................................................6 III. No need for coal.......................................................................................................................................................11 IV. Nuclear phase-out....................................................................................................................................................12 V. Conservation and efficiency......................................................................................................................................13 VI. Buildings (Cogeneration, Heating and ‘Passive-House’) ..........................................................................................14 VII. Grid Upgrade, Flexible Power ..................................................................................................................................16 VIII. Co-op, democratic focus; community buy-in...........................................................................................................18 IX. Putting a Price on Carbon.........................................................................................................................................19 X. Energy security..........................................................................................................................................................20 5.0 – Summary ......................................................................................................................................................................21 6.0 – References and Biography ...........................................................................................................................................22
  • 3. 3 | P a g e 2.0 – Introduction to this Report For the last decade, Germany has been the undisputed world leader in the advancement of wide-scale, renewable energy adoption. This process has been called the ‘German Energy Transition’, or ‘Energiewende’. This report will aim to explain what Energiewende is, how it works, why it has been successful, and what challenges lay ahead. The report will examine the specific effects that the Energiewende has had upon the German economy, environment and society. Also explored will be the way forward for Canada, following the German example. Finally, the report will summarize all topics covered thus far, and suggest that Canadian energy policy be further modelled upon the German Energiewende model. This report is broken up into ten different sections outlining ten different categories where Canadian energy policy may take its cue from Germany: 3.0 – Background Information on the ‘Energiewende’ What is the ‘Energiewende’? The ‘Energiewende’ or ‘German Energy Transition’, is the ongoing process by which Germany is shifting from gas, coal, oil and nuclear power generation to renewable sources like wind, solar and biomass. The main goals of the ‘Energiwende’ are to decarbonize energy supply and reduce demand by means of conservation and greater efficiency. Why do this? There were several pertinent factors that led to the switch to renewable energy and conservation:  Fighting climate change  Reducing energy imports; improving energy security  Stimulating technological innovation and the green economy  Eliminating the risks of nuclear power  Strengthening local economics and providing social justice These topics are further described beginning on the next page. I. Action on Climate Change II. Leadership in Renewable Technologies and the Green Economy III. No need for coal IV. Nuclear phase-out V. Conservation and efficiency VI. Buildings (Cogeneration, Heating and ‘Passive-House’) VII. Grid Upgrade, Flexible Power VIII. Co-op, democratic focus; community buy-in IX. Emissions trading and environmental taxation X. Energy security
  • 4. 4 | P a g e 4.0 – Ten German Lessons for Canadian Energy Policy I. Action on Climate Change “In 2011, a survey found that 66 percent of Germans believe that climate change is a “very serious” problem.” ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 8) At the beginning of the Industrial Revolution, the atmosphere had 280 parts per million (ppm) of carbon dioxide. Now, CO² concentrations are approaching 400 ppm. If the necessary steps are not taken expeditiously, a worldwide temperature rise of 2°C (a critical milestone) may occur as soon as 2030. Carbon-addicted humanity seems not only to be heading straight for a brick wall of climate upheaval, but in some cases, blissfully accelerating towards it. Germany bears the burden of being one of the country’s most responsible for increased planet-wide carbon emissions. For many decades, Germany has been a leading industrialized nation whose industry and electricity is heavily reliant on coal. Through its economic growth, Germany has inadvertently sped up the mechanisms of climate change. This will have the greatest impact on those less developed countries who are least prepared to cope with climate change. Germany has recognized and is meeting this responsibility through 1) a commitment to international climate funding; and 2) the energy transition, or “Energiewende”. “Germany is the second largest donor of financing for climate protecting worldwide. German Climate Funds promote action to mitigate climate change by enabling efficiency measurements, funding renewables, electric mobility, etc.” ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 53) Long-term, comprehensive energy and climate targets set by the German government in 2010 ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 17)
  • 5. 5 | P a g e “Relative to 1990, Germany reduced its carbon emissions by 25.5 percent at the end of 2012, thereby overshooting its target for the Kyoto Protocol of 21 percent for the end of 2012. But Germany aims to go further, with targets of a 40 percent reduction by 2020 and an 80 to 95 percent reduction by 2050.” ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 9) While an 80-95 percent reduction in carbon emissions by 2050 may seem ambitious, Germany has so far proven capable of meeting ambitious goals. Despite a 22% reduction in GHG emissions, Germany has been able to increase its GDP by 28% from 1991 to 2012. This proves the economic validity of their energy transition process, and should serve as a model for Canada, as well as other countries. GDP vs GHG in Germany, 1991-2012 ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 8) “(A 2011)… survey found that 79 percent of Germans believe that energy efficiency and combating climate change are good for economic growth and can create jobs.” ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 8) Germany has surpassed their Kyoto emissions reduction target of 21% (by 2012) by achieving a 25.5% reduction (by the end of 2012), as compared to 1990 emission levels.
  • 6. 6 | P a g e II. Leadership in Solar, Wind and the Green Economy “In 2009, another survey taken among 378 businesspeople, researchers, and politicians in Germany (…) found that more than four fifths believed that the pioneering role that Germany has played in reducing greenhouse gas emissions would lead to technological leadership.” ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 8) Germany vs Rest of the World (2012); Solar and Wind capacity ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 23) Share of renewables in Germany’s electricity generation (2013) ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 28)
  • 7. 7 | P a g e Germany has been a world leader in the deployment of PV deployment, despite relatively modest solar resources. When compared to Canada, it can be seen that Germany has quite meager solar insolation, and yet, they have achieved tremendous progress harnessing this limited potential. Canada vs Germany Solar Resource Potential (Dec 2010) http://www.cansia.ca/sites/default/files/pdf/solar_vision_2025.pdf Despite their solar resource disadvantage, Germany has significantly developed its solar capacity. In 2013, it lead the world with an installed capacity of 33 GW’s of PV, 27% of the world’s total solar capacity. This compares to Canadian capacity of 1.2MW, which totaled less than 1% of world capacity. Solar Capacity by Country; 2013 http://en.wikipedia.org/wiki/Solar_power_by_country (modified)
  • 8. 8 | P a g e The comparison remains true for wind development as well. Despite having vastly lower wind resources than Canada (less than 5% of Canadian potential), Germany has mightily outpaced Canada, and have deployed fourfold the wind capacity that Canada has. Canada vs Germany Wind Resource Potential http://www.pnas.org/content/106/27/10933.full.pdf (modified) Canadian vs German wind capacity (2014) http://www.pembina.org/reports/feed-in-tariffs-factsheet.pdf (modified)
  • 9. 9 | P a g e Wind Capacity by Country; Dec 2014 http://en.wikipedia.org/wiki/Wind_power_by_country The Germans have developed their solar and wind capacity through a Feed-In-Tarriff system, which was emulated in Ontario. In fact, the Ontario Green Energy Act (2009) was based on the German Renewable Energy Act. The German law specified that renewables had priority of purchase on the grid, and that renewables must receive sufficient compensation to provide adequate return. The high level of investment security and the lack of significant red tape made the German Act so successful. For example, the standard German contract for a Feed-In Tarriff is two pages, where the equivalent U.S. Power Purchase Agreement (PPA) is 70 pages. If the Ontario MicroFit program were to streamline itself as much as the German FIT program, there would likely be increased interest and adoption rates. In Germany, wind power has become the most inexpensive source of new renewables generation. PV is now competitive with conventional energy generation. Feed-in Tariffs do no lead to unnecessarily high prices. Germany has the cheapest solar power in the world because of the investment certainty and market maturity. German politicians have been rushing to reduce the solar feed-in tariffs to keep up with falling prices. Solar tariffs have fallen from around 50 cents to less than 10 cents (for big arrays), and less than 14 cents from the smallest rooftop arrays. The rate will continue to drop until 52 GW’s of PV have been installed in Germany, at which time FIT for PV will be phased out. Forecast of Power Generation Cost in Germany (up to 2030) ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 9)
  • 10. 10 | P a g e One common criticism that has levied against the German energy transition has been the increase in energy cost for the consumer. This increase has been attributed to high subsidies for wind and solar. While a popular and logical argument, it doesn’t tell the whole story. If we consider the local added value of renewable capacity, the environmental damage prevented by their deployed, and other factors, we can see that German is effectively saving 7 billion euros a year through renewables. Renewables become the most economically attractive option when commonly disregarded externalities are brought into the cost-benefit equation. Renewables save Germany more than 7 billion euros per year (2011) ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 10) Employment in Germany in renewable and conventional energy sectors (2005-2011) ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 11) “These figures represent “gross job creation”, meaning the absolute number of jobs that have been added. A thorough study of the German market estimates a net job creation of around 80,000, rising to 100,000-150,000 in the period from 2020 to 2030. One reason why renewables have such a tremendous positive impact on net job creation is that renewable power directly offsets power from nuclear plants, and very few people work in the sector.” “The Energy Transition (Energiewende) boosts green innovations, creates jobs, and helps Germany position itself as exporter of green technologies” ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 10) The German energy transition offers evidence that renewables create more jobs than conventional energy does. Nearly 400,000 Germans work in renewable energy.
  • 11. 11 | P a g e III. No need for coal Lignite, or hard coal, is widely mined and burned in Germany, but it’s three times more carbon intensive than natural gas. Coal can’t ramp very well with demand, so it’s not as effective for peaking as natural gas. The German conventional energy sector was 40% coal in 2000, and expects to be 10% by 2050. The long term plan for coal in Germany is a reduction to zero. Installed conventional electricity generation capacity in Germany (2000-2050) ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 20) Carbon Capture and Storage (CCS) has been rejected as an effective long term solution in Germany. It has been deemed too expensive and unsafe, and best not pursued. Carbon capture reduces the efficiency of the coal power plant, it increases fuel costs and storage has high inherit risk. A number of recent coal projects have been cancelled for reasons of local protest, difficulty in procuring water rights and decreased profitability in light of the boom in renewables. German communities have voiced their opposition to CCS: people don’t want repositories of stored pollutants near where they live. The German states have the political authority to veto any plan to build a carbon capture storage repository on their land. This ensures that is highly unlikely such a repository will ever be built in Germany, negated the possibility of widespread CCS implementation. “We have to be realistic. We cannot store carbon dioxide underground against the will of the population. And I do not see any political acceptance in a single German state for CCS technology with hard coal and brown coal power plants.” German Energy Minister Peter Altmaier, July 2012
  • 12. 12 | P a g e IV. Nuclear phase-out While Canada, and specifically Ontario, have embraced nuclear power, the Germans have historically not. In fact, German protest to nuclear power goes back as far as the 1970’s, and it’s phasing out had always been part of the Energiewende. The timetable was drastically moved forward after Fukushima. The disaster lit a spark of protest against nuclear power in Germany that burned all the way to the parliament. Public pressure forced a resolution to shut down, and set concrete decommissioning dates for nine out of the country’s 17 nuclear reactors. Declining German Nuclear Capacity (2000-2022) ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 39) Germany sees three main unresolved disadvantages to nuclear power:  The Risks (Proliferation, Meltdowns)  The Costs (‘Unbankability ’ – No banks finance nuclear plants; only governments do)  The Waste (Radiation for waste storage; passing on the burden to next generations) Additional concerns arise with the limited worldwide uranium supply. At current rates of consumption, uranium for conventional light-water reactors will only be available at affordable prices for the next 30 years. At that time, nuclear power as conventionally generated will likely not be the low cost option it has historically proven to be. The worldwide future of current generation nuclear is dim: more plants are scheduled to be taken off-line over the next ten years than are expected to be put online. Even if we were to triple the number of operational nuclear plants by 2050 (35 per year), global carbon emissions would only effectively be reduced by 10%. That outcome is too little, too slow, too expensive, with too much inherit risk ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 12)
  • 13. 13 | P a g e V. Conservation and efficiency Amory Lovins, acclaimed environmental scientist, has called the concept of conservation “a change in behavior based on the attitude ‘Do Less to Use Less’. A Megawatt of power saved through conservation is a megawatt not needed to be generated. He has nicknamed this ‘avoided energy’ as the ‘Nega-watt’. As important adding renewable capacity is to the German energy transition, equally important is the simultaneous reduction in consumption. Reduced energy consumption; increased renewable capacity (German energy plan, 2005-2050) ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 18) One major pillar of this reduced consumption is called the ‘Energy-related Products Directive (ErP), formally the ‘Ecodesign Directive’. This piece of Brussels based regulation sets minimum efficiency standards, and considers the lifecycle environmental impact of such energy-consuming devices as:  Consumer electronics  Refrigerators  Electric Motors  Windows  Showerheads, and more. ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 51) One of the most impactful results of the ErP Directive was the regulation of standby and off-mode power losses. The Directive requires that power loss from devices in standby mode must be no more than one watt. This threshold will be further decreased to 0.5 watts in the near future. The ErP directive has been the main regulatory instruments for cutting off from the market those products with the worse environment performance. This has resulted in banning the sale of incandescent light bulbs for domestic lighting. “By 2020, phasing out incandescent light bulbs will result in energy savings (…) equivalent to (…) six old coal power plants. The (…) regulation for electric motors will even lead to a reduction (…) equivalent to 20 coal power plants.” ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 51) By 2020, the directive is expected to reduce power consumption within the EU by 12% (compared to no Directive).
  • 14. 14 | P a g e VI. Buildings (Cogeneration, Heating and ‘Passive-House’) Cogeneration is when part of the waste heat from a power generator is recovered, increasing overall efficiency of fuel consumption. Cogeneration is much more efficient than separate power and heat generation. Additionally, heat is much easier to store than electricity is, which can provide a ramping ability to offset peak heating demand. Germany wants to get 25% of its power supply from cogeneration units by 2020. The ‘Cogeneration Act’ was therefore introduced in 2002 to incentivize cogeneration units relative to system size, irrespective of the feedstock. Owners receive upfront incentives for the purchase of the cogeneration units, plus ongoing bonus payments for electric power produced by the unit. ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 48) Comparing cogeneration to conventional ‘coal-electricity with oil-heating’ ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 47) In 2009, German passed the Renewable Energy Heating Act. This piece of legislation aimed to increase the share of renewable heat to 14% by 2020. Owners of new buildings are now obligated to get a certain share of their heat from renewable energy. The owner chooses how best to meet these obligations. Options could include renewables, more insulation, and heat from district heating networks or cogeneration units. The program was temporarily cut during the last economic crisis, however it is now back in place. A sister program to the Act supporting existing buildings is called the Market Incentive Program (MAP). The program offers financial support for owners to purchase energy related retrofits. Such retrofits can include:  Small and large solar heat collectors (incentives based on collector surface area)  Bio-mass-fired furnaces with automatic feed systems (wood pellets)  Highly efficient firewood gasifiers (upfront incentive)  Efficient heat pumps (upfront incentive)  Visualization services for such systems Similar programs to MAP offer incentives for geothermal, district heating, even the potential for solar power batteries. ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 48)
  • 15. 15 | P a g e Buildings consume 40% of all generated German energy, mostly due to heating. Oil and gas dominate the heating sector with a combined share of three-quarters of the market. It is a big slice of the pie to reduce, but doing so would have a tremendous impact, so it is a crucial area of focus for the German energy transition. This focus on reducing building heating loads began as early as 1990 with the development of highly efficient ‘Passive Houses’. German building energy demand standards ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 51) Passive houses allow the complete negation of heating systems, even in Germany’s cold climate. Heat from the kitchen and warm bodies are enough to warm the house, even during winter. Heating expenses are cut by an estimated 90% compared to a conventional new building. The houses utilize a combination of low-tech and high-tech building methods. Homes are built facing the South in Germany, and their southern facades have large glazed surfaces to allow solar heat gain. In the summer, overhanging balconies stop the sun’s rays from entering. Deciduous trees are also planted on the southern side of the build to provide shade in summer, but sun in winter when they defoliate. High-tech building methods include triple-glazed windows, which allow light and heat to enter, but prevent heat from exiting the building. Passive houses also have ventilation systems with heat recovery (HRV’s), to capture was heat and prevent mold build up Passive houses are an excellent example of how Germany’s energy transition will produce much higher standards of living even as energy consumption is reduced and made more sustainable. They have become the standard for new building construction in some German cities (like Frankfurt). ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 52) “The EU will require that all houses constructed starting 2020 be “nearly zero-energy homes,” essentially making German passive house the standard within Europe.” ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 18) ‘Passive House’
  • 16. 16 | P a g e VII. Grid Upgrade, Flexible Power Germany has gone from 3% renewable power in the 90’s to more than 25% in 2015 without any major changes to its electricity grid. However, to achieve the ‘85% renewables by 2050’ target, major changes to the grid will be required. Conventional vs Renewable electricity generation (2000-2050) ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 20) Grid operators are presented with several problem when renewables become a large percentage of the grid. Firstly is the problem with the inherent intermittency of renewable generation. The wind does not always blow, nor the sun always shine, when and where the power is needed. Effective grid storage would be required for a renewable dominated grid, and a number of storage solutions are possible, feasible and even proven economical:  Pumped hydro-power storage  Flywheel energy storage technology  Compressed air storage in caverns or old mine shafts Secondly, a substantial increase in distributed renewable generation presents the problem of multi-directional power flow, not simply one way from producer to consumer. To account for this, a smarter grid is required. Special controls and sensors will be needed to monitor the temperature and power of high voltage lines. Transformers and other devices may be susceptible to failure in a grid dominated by renewable sources. Finally, the ongoing argument remains whose responsibility it is to invest in the shared resource that is the electricity grid. With distributed generation comes the requirement for increased infrastructure for renewable power to reach consumers in cities, and the question of “who pays?” is a hot button issue. For instance, ‘double standard’ controversy has arisen when Utilities have shown willingness to make grid upgrades for large, offshore, corporate backed wind farms, but not for smaller, onshore, community funded projects. One unique proposal would see Germany exporting large amounts of power for storage to Norway and Switzerland, which have tremendous hydro-storage potential. This would require large investment to increase transmission capacity, but the returns may be worth it. Ontario could conceivable do the same: Exporting surplus renewable energy to Quebec for hydro storage, to be run through generators during times of high demand, high prices and low renewable output. ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 53)
  • 17. 17 | P a g e The new renewable landscape poses problems too for Germany’s four biggest power companies. They earn their revenue through providing peak power at a large markup, with less expensive baseline power. If renewables are able to take a huge bite out of peak demand, as solar is now doing, then the power companies will find their revenue substantially curtailed. They will need to adapt and reconfigure their capacity to match the new reality. Baseload power is incompatible with renewables, and will soon be a thing of the past. What will be required is flexible, fast ramping, quickly dispatchable power generation. The graph below shows the predicted German power demand profile for 2020. Solar provides 0% of the demand - then 90% - then 0% again over a single day. Conventional plants ramp from 10GW to 50GW within twelve hours. Wind is highly variable. This is the energy landscape of the future. ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 53) ‘Flexible Power’ – German power demand over a week in 2012 vs 2020 [] - ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 23) Current ‘baseload’ plants will not be sufficiently nimble to match this new power demand landscape, resembling 24/7 peak load following. Highly ramp-able turbines fueled by natural gas will be the short term solution, replaced with sustainable biogas and renewably generated hydrogen. The long-term solution see a complete redesign of the power market, perhaps with the introduction of a ‘strategic power reserve’: Plants held offline/idle, in good working order, ready to quickly ramp up when needed. The solution was proposed in July 2012 by the German Environmental Agency (UBA). Power companies would be paid for a certain amount of generating capacity maintained in service, not for the power generated from these plants. The rest of the power market would remain undisturbed. Such is the sort of system that will be required to meet the demands of a predominately renewable energy grid. [] - ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 53)
  • 18. 18 | P a g e VIII. Co-op, democratic focus; community buy-in “Local ownership of renewables provides great economic payback to investing communities. Energy efficiency and renewables together give the poor a way around higher prices for fossil fuels.” ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 14) Community ownership of renewable energy projects is widespread in Germany. The German word for community ownership group, or cooperative, is “Genossenschaften”. As power producers, the electricity they sell back to the grid has priority over corporations. The German feed-in tariff system, upon which our Canadian MicroFIT program was based, is conducive to community ownership of large projects. Through co-ops, ownership of the country’s power supply shifts from large power companies to the citizenry. Co-ops are a democratizing force within Germany. “Energy cooperatives democratize energy supply in Germany and allow everyone to benefit from the energy transition even if they do not own their own home.” - Head of Germany’s Solar Industry Association (BSW-Solar) It is estimated that “energy cooperatives” have leveraged € 800 million in investments for more than 80,000 private citizens in Germany. You needn’t own your own home to invest: shares in co-op PV projects can be as low as € 100, with the average minimum being around € 500. ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 36) “We cannot say who owns a particular wind farm in Germany because ownership is splintered across scores, and sometimes hundreds, of local citizens and businesses.” DEWI, organization that collates statistics on German wind power. German ownership of renewables (2012) ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 34) There have even been instances, notably in Hamburg, where citizen co-ops have successfully purchased their local utility grid. Imagine a group of Canadian citizens purchasing a part of Hydro-One, or Kingston Utilities!
  • 19. 19 | P a g e IX. Putting a Price on Carbon http://www.euractiv.com/sections/energy/after-oil-price-crash-its-time-carbon-tax-311377 The European Union has put a price on carbon, which is something Canada is still debating doing. The European initiative, called the ‘Emissions Trading System’ (ETS), caps greenhouse gas emissions for the long term. The only method by which carbon producers can overshoot their emissions cap is through the purchase of ‘carbon offset’ certificates. These credits give emissions allowances to companies in different sectors. This policy is the main instrument in the EU to lower greenhouse gas emissions. The ETS has had a rocky history, and was completely revised in 2009/2010. It has been criticized for a lack of ambition, too many loopholes, concessions to electricity and industry lobbies, unambitious targets and a lack of adjustment to economic downturns. Some notable criticisms and design flaws have included:  The giving out of generous volumes of free certificates to major emitters early on in the pilot phase. The major emitters then turned around and sold those offsets to others for a profit. To correct this, certificates are no longer be offered for free, but auctioned off.  Too many certificates are still in circulation, diluting the intended effect of the system. The EU aims to correct this by postponing the issuing of new certificates.  The allowance for European companies to reduce their carbon emissions not at home, but in developing countries. The criticism centers on the issue of outsourcing the responsibility for emissions reduction abroad, which postpones inevitable structural changes at home. The current system allows for as much as 50% outsourced offsets.  The ‘price of carbon’ is too low to stimulate the required mass switch over to low carbon fuels. Emissions trading has sometimes been viewed in conflict with the Feed-In Tariff program. If the goal is lowering greenhouse gas emissions, then the ETS, through market forces, would presumably deliver the optimal solution. Why then, the need to artificially incentivize certain renewables to make them more economically viable? The perceived conflict arises from not recognizing the identical goals of renewables and carbon credits: Renewables offset gas and coal in Germany, reducing greenhouse gases; Carbon credits financially punish large emitters, also encouraging the reduction in greenhouse gases. The practical results of both projects are identical: the reduction in greenhouse gases. They exist synergistically, differing only in means and method. ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 53)
  • 20. 20 | P a g e X. Energy security In 2012, Germany spent 87 billion euros on energy imports. It imports more than 70% of its energy, including uranium. Germany is by far the biggest importer of gas from Russia. With the recent troubles in the Crimea and the Ukraine, and the sanctions levied on Russian, it might be conceivable that Russia halt the exportation of gas to Germany. German energy imports, 2012 ‘Energy Transition’ – Heinrich Boll Stiftung, Nov 28, 2012. (Page 14) As worldwide demand for energy continues to rise, it will outstrip supply in a fossil fuel based world. The more energy a country can get from within its own borders, the more protected they are from outside influence or political coercion. Improving energy efficiency, conservation measures and renewable energy generation can all contribute to reduced imports and enhanced energy security. By reducing energy imports, Germany is less vulnerable to the rising prices for fossil fuels and to political influence from abroad. Domestic production of renewable gas would make supply more certain and less politicized. Reducing the consumer- supplier political dynamic would contribute to harmony between nations. What need would there be for wars over resources if one’s own renewable energy economy was vital? Just consider the affect the Saudi’s have had on the oil sands developments. Canada, by investing heavily into fossil fuel projects, has made herself vulnerable to outside influence, and from the fluctuations of the oil price. This was the way of the past. The future of energy security, and the long-term survival of the human species, is centered on clean, economically viable, renewable energy sources. Germany has lead the charge, and now Canada must follow them through the breach on that noble project; the grand enterprise of the twenty-first century. http://blog.lufft.com/en/heading-for-the-future-with-renewable-energy/
  • 21. 21 | P a g e 5.0 – Summary Germany has taken the lead into the renewable energy future with their ‘Energiewende’, or Energy Transition, and Canada now has the opportunity to follow. Recognizing the grave threat climate change poses, Germany has instituted drastic measures to reduce her carbon emissions. In 2050, Germany plans to reduce carbon emissions by 80% compared to 1990 levels, and have 80% of its energy derives from renewable sources. They plan to do this through a monumental increase in PV and wind capacity, all while reducing coal and phasing out nuclear power. Increased building efficiency, conservation measures and cogeneration will also make a significant contribution to this transition. Novel storage methods will be developed, perfected and made financially lucrative. A continued focus on community ownership and involved ensures the energy transition is a democratic movement. Increased renewable capacity at home reduces the need for energy importation, increasing security and lessening tensions over resources. Germany aims to prove by 2050 the economic and practical viability of a modern, industrial economy deriving most of its energy from renewable sources. This author shall do his utmost, in whatever capacity he finds himself, to aid in the success of that transition, whether here in Canada, in Germany, or wherever in the world he finds himself between 2015 and 2050. It is a worthwhile enterprise to dedicate one’s life to. http://www.futuretimeline.net/21stcentury/images/energy-islands-large.jpg
  • 22. 22 | P a g e 6.0 – References and Biography Title Page Pictures: http://www.unternehmerakzente.de/wp-content/uploads/2012/02/Energiewende_700_300_artikel.jpg http://www.zeit.de/2011/20/Energiewende-Interview-Merkel ENERGIEWENDE MAIN SITE - http://energytransition.de/ NRCAN Report - https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/www/pdf/publications/emmc/renewable_energy_e.pdf Greater Toronto Area – Renewable Energy Overview - http://www.greatertoronto.org/wp- content/uploads/2014/04/GTA-Renewable-Energy-Overview-for-Italian-businesses.pdf Failure of Canada to meet its obligations - http://www.pembina.org/media-release/pembina-reacts-to-us-china-climate- announcement Cansia Roadmap 2020 - http://cansia.ca/sites/default/files/cansia_roadmap_2020_final.pdf Cansia Roadmap 2020 (present) - http://cansia.ca/sites/default/files/20140620_kpmg_roadmap_presentation_final.pdf Low cost solar in 7 days, not 180 - http://cleantechnica.com/2015/03/05/low-cost-solar-7-days-not-180-days/ Canada future of Wind - http://canwea.ca/wind-energy/national/ CanWea WindVision - http://canwea.ca/pdf/windvision/Windvision_summary_e.pdf CanWea WindVision (Background)- http://canwea.ca/pdf/windvision/Windvision_backgrounder_e.pdf Best Practices for Community involvement in Wind energy - http://canwea.ca/pdf/canwea-communityengagement- report-e-final-web.pdf Renewable energy coops - http://www.brantfordexpositor.ca/2014/12/18/renewable-energy-co-ops-springing-up- everywhere Renewable energy coops (2) - http://www.cooperativedifference.coop/assets/files/National/RE_Co- op_Review_RegulatoryScan_Jan2012.pdf Pembina (Solid Energy Policy Resource) = http://www.pembina.org/re http://www.pembina.org/re/work/municipalities http://www.pembina.org/re/work/first-nations http://www.pembina.org/re/work/developing-countries http://www.pembina.org/re/work/provincial-policy Ontario’s LTEP - http://powerauthority.on.ca/sites/default/files/planning/LTEP_2013_English_WEB.pdf Facts about Photovoltaics in Germany - http://www.ise.fraunhofer.de/en/publications/veroeffentlichungen-pdf-dateien- en/studien-und-konzeptpapiere/recent-facts-about-photovoltaics-in-germany.pdf Two energy lessons from Germany - http://blogs.scientificamerican.com/plugged-in/2014/10/07/energiewende-two- energy-lessons-for-the-united-states-from-germany/
  • 23. 23 | P a g e Energy Transition - http://en.wikipedia.org/wiki/Energy_transition_in_Germany#cite_note-18 Separating Fact from fiction in Germany - http://blog.rmi.org/separating_fact_from_fiction_in_accounts_of_germanys_renewables_revolution Singapore energy efficiency example - http://blog.rmi.org/blog_2015_03_05_energy- efficiency_insights_from_singapores_marina_bay_sands Reinventing Fire - http://www.rmi.org/ReinventingFire Gamechangers(1) - http://blog.rmi.org/blog_2014_09_30_three_energy_gamechangers_for_china_and_the_world_part_1 Gamechangers(2) - http://blog.rmi.org/blog_2014_10_01_three_energy_gamechangers_for_china_and_the_world_part_2 Amory Lovins - http://blog.rmi.org/blog_2014_12_16_joining_forces_to_combat_climate_change_and_reignite_the_global_economy Germany leads the way - http://www.worldwatch.org/node/5430 Renewable energy lessons from Germany - http://www.renewableenergyworld.com/rea/blog/post/2014/10/7- renewable-energy-lessons-from-germany Germany National Renewable Energy Plan - http://en.wikipedia.org/wiki/Germany_National_Renewable_Energy_Action_Plan Expensive gamble of Germany renewables - http://www.wsj.com/articles/germanys-expensive-gamble-on-renewable- energy-1409106602 Economist con article - http://www.economist.com/node/21559667 The Drake Landing Solar Community in Okotoks, Alberta – http://www.dlsc.ca/reports/DLSC_SHC_2012_final.pdf More stuff - http://reneweconomy.com.au/2015/graphs-of-the-day-the-success-of-germanys-energy-transition-15022 http://en.wikipedia.org/wiki/Renewable_energy_in_Germany http://www.gtai.de/GTAI/Content/EN/Invest/_SharedDocs/Downloads/GTAI/Articles/The-renewable-energy- industry-in-germany.pdf http://motherboard.vice.com/read/one-third-of-germany-is-powered-by-renewable-energy