Feed-in tariffs in Germany
Encyclopedia
Feed-in electricity tariffs have been introduced in Germany to encourage the use of new energy technologies such as wind power
, biomass
, hydropower
, geothermal power
and solar photovoltaics. Each technology is eligible for a different feed-in rate. As of July 2010, feed-in tariffs range from 3.47 ct/kWh for hydropower facilities over 50 MW to 34.05 ct/kWh for solar installations on buildings up to 30 kW.
The aim is to meet Germany’s renewable energy
goals of 12.5% of electricity consumption in 2010 and 35% in 2020. The policy also aims to encourage the development of renewable technologies, reduce external costs, and increase security of energy supply.
In 2005, 10 per cent of electricity in Germany came from renewable sources and 70 per cent of this was supported with feed-in tariffs. The Federal Environment Ministry estimates that this will save 52 million tonnes of carbon dioxide by 2010. The average level of feed-in tariff was €0.0953 per kWh in 2005 (compared to an average cost of displaced energy of €0.047 kWh). The total level of subsidy was €2.4 billion, at a cost per consumer of €0.0056 per kWh (3 per cent of household electricity costs). The tariffs are lowered every year to encourage more efficient production of renewable energy. As of 2008, the annual reductions are 1.5% for electricity from wind, 5% for electricity from photovoltaics, and 1% for electricity from biomass. In the first quarter of 2011, 19.2% of Germany's electricity was produced by renewable sources. This is compared to 17.1% in the first quarter of 2010, an increase of 2.1%.
There are about 340,000 people working in the renewable energy sector in Germany, which has an industry turnover of €8.7 billion.
Wind power
Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....
, biomass
Biomass
Biomass, as a renewable energy source, is biological material from living, or recently living organisms. As an energy source, biomass can either be used directly, or converted into other energy products such as biofuel....
, hydropower
Hydropower
Hydropower, hydraulic power, hydrokinetic power or water power is power that is derived from the force or energy of falling water, which may be harnessed for useful purposes. Since ancient times, hydropower has been used for irrigation and the operation of various mechanical devices, such as...
, geothermal power
Geothermal power
Geothermal energy is thermal energy generated and stored in the Earth. Thermal energy is the energy that determines the temperature of matter. Earth's geothermal energy originates from the original formation of the planet and from radioactive decay of minerals...
and solar photovoltaics. Each technology is eligible for a different feed-in rate. As of July 2010, feed-in tariffs range from 3.47 ct/kWh for hydropower facilities over 50 MW to 34.05 ct/kWh for solar installations on buildings up to 30 kW.
The aim is to meet Germany’s renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
goals of 12.5% of electricity consumption in 2010 and 35% in 2020. The policy also aims to encourage the development of renewable technologies, reduce external costs, and increase security of energy supply.
In 2005, 10 per cent of electricity in Germany came from renewable sources and 70 per cent of this was supported with feed-in tariffs. The Federal Environment Ministry estimates that this will save 52 million tonnes of carbon dioxide by 2010. The average level of feed-in tariff was €0.0953 per kWh in 2005 (compared to an average cost of displaced energy of €0.047 kWh). The total level of subsidy was €2.4 billion, at a cost per consumer of €0.0056 per kWh (3 per cent of household electricity costs). The tariffs are lowered every year to encourage more efficient production of renewable energy. As of 2008, the annual reductions are 1.5% for electricity from wind, 5% for electricity from photovoltaics, and 1% for electricity from biomass. In the first quarter of 2011, 19.2% of Germany's electricity was produced by renewable sources. This is compared to 17.1% in the first quarter of 2010, an increase of 2.1%.
There are about 340,000 people working in the renewable energy sector in Germany, which has an industry turnover of €8.7 billion.