The document summarizes Germany's Renewable Energy Law (EEG) and its impact on renewable energy development in the country. The EEG established a feed-in tariff system that obligates grid operators to purchase renewable energy at a fixed price for 20 years, providing planning and cost reliability for investors. This has driven strong growth in renewable electricity, with goals of 12.5% by 2010 and 20% by 2020. It has also stimulated significant investment and employment in the renewable energy sector, with €11.3 billion in investment and over 124,000 jobs in 2006. The success of the EEG demonstrates how policy tools can accelerate markets for renewable energy.

1. Local Renewables Freiburg 2007 June 14, 2007 Tobias Kelm Centre for Solar Energy and Hydrogen Research Renewable Energy Law: Stimulating Investment in Germany

2. Content German Renewable Energy Law (EEG) Development of renewable electricity in Germany Investment and Employment in the RES/RES-E-sector Support schemes for RES-E in the EU

3. EEG Principles Feed-in tariff system Obligation on grid operators to connect RES-E plants, to purchase RES-E and to pay fixed prices ( remuneration ) Obligation on suppliers to purchase RES-E from grid operators at an average remuneration The amount of remuneration is cost oriented, differentiated by technology, commissioning year and capacity Remuneration is fixed for 20 years  Planning and cost reliability for investors

4. Development and goals of renewable electricity in Germany Source: Renewable Energy in Figures, BMU (2007) at least 12.5% by 2010 at least 20% by 2020 Goals:

5. Development of RES-E Generation in Germany Source: Renewable Energy in Figures, BMU (2007) amended EEG

6. Wind Power Development in Germany Source: Renewable Energy in Figures, BMU (2007)

7. Photovoltaics Development in Germany amended EEG

8. Development of annual remuneration Source: Association of German network operators (2007) amended EEG *Figures for 2006 provisional Remuneration = total costs (of which approximately 50% are differential costs)

9. Electricity Bill 2006 Total: €0.194/kWh Source: BMU (2007) Approximately €2 per month for a typical 3-person household

10. Turnover from investment and operation in 2006 Source: BMU (2007) € 11.3 billion from investment in construction of RES-plants € 10.3 billion from operating RES-plants

11. Employees in the renewable energy sector Source: BMU (2007) Employees in the RES-E-sector: 124,000 in 2006 (98,000 in 2004)

12. Feed-in tariff and Quota Feed-in tariff Quota Tax incentives / Investment grants Other system SE FI LA LT PL CZ HU AT DE DK UK IE ES PT IT MT CY GR FR NL BE LU EE BE SI SK Dominating support schemes for RES-E in the EU A clear majority of EU countries use feed-in tariffs as a main instrument Source: Feed-In Cooperation

13. Summary Development of RES-E in Germany has mainly been driven by the establishment of the EEG, implemented in 2000 Deployment requires time and money Tools of German RES-E policy have been successful for accelerating the market for RES-E and thus for the generation of investment and employment

14. Thank you for your attention! Tobias Kelm Centre for Solar Energy and Hydrogen Reseach [email_address] www.zsw-bw.de