News
Publish date: September 9, 2010
News
RES main emphasis
Merkel announced that its entire revenue from the sale of CO2 emission allowances will be spent on renewable energy (RES) and other climate friendly investments. The share of RES in the gross electricity consumption is planned to reach 35 % in 2020; 50 % in 2030, 65 % in 2040 and 80 % in 2050.
Nuclear phase-out; coal only partial phase-out if CCS technology available
The government states that nuclear and coal energy will be utilised “no longer than necessary”, but will remain in place as bridging technologies. Nuclear power plants will be phased out until the last plant, Neckarwestheim II in Baden-Württemberg, will be shut down in 2036. Notably however, the draft strategy (to be voted on 28th September) outlines support for building new fossil fuel-fired plants equipped for CCS, albeit only when their equivalent in emission intensive older plants simultaneously will be shut down (with exception for small energy producers, i.e. providing less than 5% of the country’s generating capacity).
CCS legislation progress
CCS is described as important mainly for energy and emission intensive industries (steel, cement, chemicals, refineries etc.), although also for fossil power plants, and the technology export potential is moreover underlined. The outline for a comprehensive legislation proposal for the entire CCS demonstration value chain has been agreed between the ministries for finance and environment in July, and will be presented in a final draft to the cabinet in mid-September, shortly before the energy strategy.
According to the proposed CCS legislation, the storage applications must be handed in by ultimo 2015, with a maximum storage of 3 million tons CO2/year per storage location. Concerned municipalities are to receive financial compensation. The government intends to make an analysis of German storage potential by 2012, creating the basis for a national storage register. An evaluation of the CCS legislation and possible commercialisation of CCS-technology is to be carried out in 2017.
CCS demo projects
To be noted here is that this legislation will prepare the ground for “two of the twelve EU-funded CCS demo projects to be built in Germany by 2020. In addition, a storage project for industrial CO2 emissions (e.g. a common project for industrial and biomass CO2) shall be commenced”. As yet, there are no clear financial incentives listed beyond the EU financing through the EEPR and NER 300.
The government furthermore wants to cooperate with industry on R&D for the use of CO2 as a raw material, preferably connected to RES (e.g. algae reactors). R&D projects will commence in 2011.
View the draft energy strategy here.
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