Rethinking the energy system: The potential of distributed energy The Case of Germany 
Alexander Ochs 
Camino a la COP 20|Lima 15 September
Overview 
1. 
the trends | Germany’s energy transition 
2. 
the enablers | Vision, policies, governance 
3. 
the impacts | Busted myths, changed paradigms 
4. 
the lessons | Key take-aways
1. the trends Germany’s Energy Transition
Energy efficiency 
0 
0.2 
0.4 
0.6 
0.8 
1 
1.2 
1.4 
1.6 
1.8 
2 
1971 
1973 
1975 
1977 
1979 
1981 
1983 
1985 
1987 
1989 
1991 
1993 
1995 
1997 
1999 
2001 
2003 
2005 
2007 
2009 
2011 
Tons of Oil Equivalent per USD 1,000 GDP 
US 
Germany 
EU 
© Worldwatch Source: World Bank
Renewables share in electricity mix 
0 
10 
20 
30 
40 
50 
60 
70 
1990 
1991 
1992 
1993 
1994 
1995 
1996 
1997 
1998 
1999 
2000 
2001 
2002 
2003 
2004 
2005 
2006 
2007 
2008 
2009 
2010 
2011 
2012 
% 
Global 
Germany 
© Worldwatch 
Source 1990-2011: EIA 
2011-2012: EC Pocketbook
Renewables share in electricity mix 
0 
10 
20 
30 
40 
50 
60 
70 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
% 
Germany 
USA 
EU 
Peru 
© Worldwatch 
Source 1990-2011: EIA 
2011-2012: EC Pocketbook, 
ClimateScope, EIA
0 
50 
100 
150 
200 
250 
300 
350 
1990 
1994 
1998 
2002 
2006 
2010 
Billion kWh 
Coal 
Nuclear 
RE 
Natural gas 
Generation trends in Germany 
© Worldwatch Source: World Bank 
Oil
Annual RE additions, Germany 
Source: EnergyMap
-100.00 
0.00 
100.00 
200.00 
300.00 
400.00 
500.00 
600.00 
700.00 
Hardcoal 
Soft coal 
Mineral oil 
Gas 
Petroleum 
gas 
Nuclear 
Energy 
RE 
Hybrid, 
Wind, 
Photovoltaik 
Biomass 
and bio. 
Waste 
Growth Rate (%) 
© Worldwatch 
Source: AGEB 
Growth of Technology Germany 2000-2013
Total Solar PV Capacity Global Leaders, 2013 
Source: REN21 2011 
Source: REN21
Map credit: NREL
2. the enablers Vision & Goals Policies & Measures Effective Governance & Administration
Policies & Instruments: Emissions Trading
3. the impacts Busted Myths | Changed Paradigms
Centralized vs. Distributed Power 1990 - 2014 
Source: EnergyMap 
0 
5000000 
10000000 
15000000 
20000000 
25000000 
KW
0 
5 
10 
15 
20 
25 
30 
35 
40 
2001 
2002 
2003 
2004 
2005 
2006 
2007 
2008 
2009 
2010 
2011 
2012 
US cents per kilowatt-hour 
Germany 
Germany 
Electricity Tariff Trends 
In Germany from 2007-2013 
Development of the Electricity Tariff 
Private Household 
Industry 
Incl. Tax
Germany to other EU Countries 
Internation Eletricity Tariffs Comparisment of private Households 2013 of an anual Usage of 1000 to 2500kwH 
UK Slowenia Italy Malta Finnland Sweden Portugal Czech Rep. Austria Belgium Spain Cyprus Norway Ireland Germany Denmark
GHG Emissions, Electricity Sector 
Source: EEA
Air & Water quality 1990 - 2014 
Emissions of certain atmospheric pollutants 
Amonia gas 
Nitrous oxide 
Dust 
Dust (PM10) 
Dust (PM2,5) 
NMVOC 
Sulphur dioxide 
Carbon monooxide
0 
10000 
20000 
30000 
40000 
50000 
1990 
1992 
1994 
1996 
1998 
2000 
2002 
2004 
2006 
2008 
2010 
2012 
GDP per Capita 
US$ 
Source: Worldbank
Export surplus 
Export 
Import 
Import, Export and Export surplus, 1991-2012 
Development of External Trade
Numbers of patent application in renewable Energy sector 
in Germany 2005-2013 
Total of RE 
PV 
Wind energy 
Geothermal, Biogas, other sources 
Hybrid
Impacts Yet to Come 
• 
Likely “real” electricity price development 
• 
Job prognoses
Siemens 
Revenue of Siemens AG of 2008/2009 till 2012/2013 in Million Euro
0 
200 
400 
600 
800 
1000 
1200 
1400 
1600 
2003 
2004 
2005 
2006 
2007 
2008 
2009 
2010 
2011 
Employees
Founded 1988 
Revenue: 
•2011: 122 Mio Euro 
•2012: 200 Mio Euro 
•2013: 234 Mio. Euro
Privat Sector 
Source: BWK Bd. 64
Case study 
Photovoltaikanlage in Berlin-Zehlendorf 
by 0% 
by 20% 
by 40% 
own consumption 
Lifetime Income of FiT 
14.710€ 
11.776€ 
8.822€ 
Lifetime Savings through own consumption 
0€ 
8.973€ 
17.920€ 
Overall Lifetime income (a year) 
14.710€ (712€) 
20.749€ (1.004€) 
26.743€ (1.294€) 
Lifetime cost 
12.562€ 
Lifetime Surplus (a year) 
2.148€ (104€) 
8.186€ (396€) 
14.180€ (686€) 
Rate of Return 
2,26% p.a. 
6,77% p.a. 
10,29% p.a. 
Source: PVSolarstrom
Forecast of electricity landscape 
Source: ET
4. the lessons Key Take-Aways
• 
Energy transition globally a necessity 
• 
Energiewende produced enormous environmental, economic & social benefits 
• 
Paradigm change is underway 
• 
Winners and losers; policy-makers need to set market framework; corporations decide how to play 
• 
Corporations are increasingly seeing opps, but need supporting policies 
• 
Political and private sector decision-making should go hand in hand: stakeholder dialogues 
• 
Integrated assessments/roadmaps: Technical, socio- economic, financial, political analysis necessary
thank you! www.worldwatch.org aochs@worldwatch.org
the future New Challenges | New Ideas
Technology/Market Challenges 
• 
The future grid How does it look like and what are the necessary investments? Who runs the grid/back-up in a distributed system? 
• 
The need for storage What is are the right support systems for technical options? 
• 
More research needed on DSM 
• 
New Business model needed How to create the right market incentives and support sustainable energy business models?
Ideas 
Portfolio of policies which provides ambitious and continuously updated goals and keep being reliable. 
These includes financial bonuses or rebates and reformation about legislation. 
For example: bill the building instead of the builder
Impact of insolvent Solarbranche 
Source: Ec Pocketbook 
Solarthermal Power 
Investment (incl Export) 
Maintenance and Service 
Preparation of Fuel 
Total Employment 2013 
Total Employment 2012 
Wind onshore 
100.800 
18.200 
119.000 
104.000 
Wind offshore 
17.500 
1.300 
18.800 
17.800 
Photovoltaik 
45.100 
10.900 
56.000 
100.300 
Solarthermie 
10.100 
1.300 
11.400 
12.200 
Solarthermal Power 
1.100 
1.100 
1.400 
Hybrid 
8.300 
4.800 
13.100 
12.900 
Geothermie 
14.600 
2.700 
17.300 
16.400 
Biogas 
17.200 
11.800 
20.200 
49.200 
50.400 
Biomass 
16.100 
12.500 
23.000 
51.600 
51.700 
Biofuel 
6.000 
8.600 
8.400 
25.600 
25.400 
Sum 
230.800 
63.500 
68.800 
363.100 
392.500 
public funded Research/Administration 
8.300 
7.300 
Sum 
371.400 
399.800

Repensando el sistema energético: El potencial de la energía distribuida - el caso de Alemania.

  • 1.
    Rethinking the energysystem: The potential of distributed energy The Case of Germany Alexander Ochs Camino a la COP 20|Lima 15 September
  • 2.
    Overview 1. thetrends | Germany’s energy transition 2. the enablers | Vision, policies, governance 3. the impacts | Busted myths, changed paradigms 4. the lessons | Key take-aways
  • 3.
    1. the trendsGermany’s Energy Transition
  • 4.
    Energy efficiency 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Tons of Oil Equivalent per USD 1,000 GDP US Germany EU © Worldwatch Source: World Bank
  • 5.
    Renewables share inelectricity mix 0 10 20 30 40 50 60 70 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 % Global Germany © Worldwatch Source 1990-2011: EIA 2011-2012: EC Pocketbook
  • 6.
    Renewables share inelectricity mix 0 10 20 30 40 50 60 70 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 % Germany USA EU Peru © Worldwatch Source 1990-2011: EIA 2011-2012: EC Pocketbook, ClimateScope, EIA
  • 7.
    0 50 100 150 200 250 300 350 1990 1994 1998 2002 2006 2010 Billion kWh Coal Nuclear RE Natural gas Generation trends in Germany © Worldwatch Source: World Bank Oil
  • 8.
    Annual RE additions,Germany Source: EnergyMap
  • 9.
    -100.00 0.00 100.00 200.00 300.00 400.00 500.00 600.00 700.00 Hardcoal Soft coal Mineral oil Gas Petroleum gas Nuclear Energy RE Hybrid, Wind, Photovoltaik Biomass and bio. Waste Growth Rate (%) © Worldwatch Source: AGEB Growth of Technology Germany 2000-2013
  • 10.
    Total Solar PVCapacity Global Leaders, 2013 Source: REN21 2011 Source: REN21
  • 11.
  • 12.
    2. the enablersVision & Goals Policies & Measures Effective Governance & Administration
  • 15.
    Policies & Instruments:Emissions Trading
  • 18.
    3. the impactsBusted Myths | Changed Paradigms
  • 19.
    Centralized vs. DistributedPower 1990 - 2014 Source: EnergyMap 0 5000000 10000000 15000000 20000000 25000000 KW
  • 20.
    0 5 10 15 20 25 30 35 40 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 US cents per kilowatt-hour Germany Germany Electricity Tariff Trends In Germany from 2007-2013 Development of the Electricity Tariff Private Household Industry Incl. Tax
  • 21.
    Germany to otherEU Countries Internation Eletricity Tariffs Comparisment of private Households 2013 of an anual Usage of 1000 to 2500kwH UK Slowenia Italy Malta Finnland Sweden Portugal Czech Rep. Austria Belgium Spain Cyprus Norway Ireland Germany Denmark
  • 22.
    GHG Emissions, ElectricitySector Source: EEA
  • 23.
    Air & Waterquality 1990 - 2014 Emissions of certain atmospheric pollutants Amonia gas Nitrous oxide Dust Dust (PM10) Dust (PM2,5) NMVOC Sulphur dioxide Carbon monooxide
  • 25.
    0 10000 20000 30000 40000 50000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 GDP per Capita US$ Source: Worldbank
  • 27.
    Export surplus Export Import Import, Export and Export surplus, 1991-2012 Development of External Trade
  • 29.
    Numbers of patentapplication in renewable Energy sector in Germany 2005-2013 Total of RE PV Wind energy Geothermal, Biogas, other sources Hybrid
  • 30.
    Impacts Yet toCome • Likely “real” electricity price development • Job prognoses
  • 31.
    Siemens Revenue ofSiemens AG of 2008/2009 till 2012/2013 in Million Euro
  • 32.
    0 200 400 600 800 1000 1200 1400 1600 2003 2004 2005 2006 2007 2008 2009 2010 2011 Employees
  • 33.
    Founded 1988 Revenue: •2011: 122 Mio Euro •2012: 200 Mio Euro •2013: 234 Mio. Euro
  • 34.
  • 35.
    Case study Photovoltaikanlagein Berlin-Zehlendorf by 0% by 20% by 40% own consumption Lifetime Income of FiT 14.710€ 11.776€ 8.822€ Lifetime Savings through own consumption 0€ 8.973€ 17.920€ Overall Lifetime income (a year) 14.710€ (712€) 20.749€ (1.004€) 26.743€ (1.294€) Lifetime cost 12.562€ Lifetime Surplus (a year) 2.148€ (104€) 8.186€ (396€) 14.180€ (686€) Rate of Return 2,26% p.a. 6,77% p.a. 10,29% p.a. Source: PVSolarstrom
  • 36.
    Forecast of electricitylandscape Source: ET
  • 37.
    4. the lessonsKey Take-Aways
  • 38.
    • Energy transitionglobally a necessity • Energiewende produced enormous environmental, economic & social benefits • Paradigm change is underway • Winners and losers; policy-makers need to set market framework; corporations decide how to play • Corporations are increasingly seeing opps, but need supporting policies • Political and private sector decision-making should go hand in hand: stakeholder dialogues • Integrated assessments/roadmaps: Technical, socio- economic, financial, political analysis necessary
  • 39.
    thank you! www.worldwatch.orgaochs@worldwatch.org
  • 40.
    the future NewChallenges | New Ideas
  • 41.
    Technology/Market Challenges • The future grid How does it look like and what are the necessary investments? Who runs the grid/back-up in a distributed system? • The need for storage What is are the right support systems for technical options? • More research needed on DSM • New Business model needed How to create the right market incentives and support sustainable energy business models?
  • 42.
    Ideas Portfolio ofpolicies which provides ambitious and continuously updated goals and keep being reliable. These includes financial bonuses or rebates and reformation about legislation. For example: bill the building instead of the builder
  • 43.
    Impact of insolventSolarbranche Source: Ec Pocketbook Solarthermal Power Investment (incl Export) Maintenance and Service Preparation of Fuel Total Employment 2013 Total Employment 2012 Wind onshore 100.800 18.200 119.000 104.000 Wind offshore 17.500 1.300 18.800 17.800 Photovoltaik 45.100 10.900 56.000 100.300 Solarthermie 10.100 1.300 11.400 12.200 Solarthermal Power 1.100 1.100 1.400 Hybrid 8.300 4.800 13.100 12.900 Geothermie 14.600 2.700 17.300 16.400 Biogas 17.200 11.800 20.200 49.200 50.400 Biomass 16.100 12.500 23.000 51.600 51.700 Biofuel 6.000 8.600 8.400 25.600 25.400 Sum 230.800 63.500 68.800 363.100 392.500 public funded Research/Administration 8.300 7.300 Sum 371.400 399.800