21.2 Introducing Renewable Energy in Germany
21.2.1 Retaining a Diversity of Renewable Energy Power
Sources
In Germany in the 1990s, the ratio of hydroelectric and onshore wind power
generation was the highest among renewable energy power sources. In the twentieth
century, the proportion of photovoltaic and biomass power generation gradually
increased, while the proportion of hydroelectric power generation decreased.
Renewable energy power generation in Germany in 2014 was mainly composed of
onshore wind (34%), biomass (26.8%), solar (21.8%), and hydroelectric (12.8%).
Unlike in Japan, where solar power generation dominates, renewable energy in
Germany has maintained a degree of diversity.
Prior to 2000, renewable energy in Germany was biased toward onshore wind.
From 2008, the speed of introduction of solar power generation facilities has
gradually outpaced that of other renewable energy facilities. Since then, the German
government has unsuccessfully tried to reduce the amount of solar power generation
installed, but by 2012, solar accounted for 46.7% of renewable energy. The share of
photovoltaic power generation in renewable energy has since gradually decreased,
and the balance of renewable energy power has improved. Germany has succeeded
in maintaining the current diversity of power sources through the PDCA (plan-docheck-act cycle) process. In particular, the history of revisions to their Renewable
Energy Law (EEG Law) is of great significance to Japan (Takeuchi 2015).
The Electricity Supply Act, which is thought of as the origin of FIT, obliged
electric power companies to purchase power generated by renewable energy sources
in their supply area at a fixed ratio (90%) of the retail price of electric power. Since
all renewable energy purchase prices were set at the same level, only the cheapest,
onshore wind power, was introduced in large volumes.
The EEG of 2000 was created against this background. The law established the
main framework for FIT today. Unlike the Electricity Supply Act, the purchase price
of renewable energy power under the EEG Law can be adjusted on a cost basis for
each type of renewable energy, rather than being set at a fixed ratio. In this way,
biomass and solar power generation were gradually introduced. For solar power
generation, which was expensive at the time, an upper limit of 350 MW was set in
order to reduce total introduction cost (in July 2002, the upper limit was raised to
1000 MW).
A revision of the EEG Law in 2004 removed the upper limit of installed capacity
for solar power generation facilities. The purchase price of photovoltaics, especially
small-scale photovoltaics, was also significantly increased and that of geothermal
power was raised. Purchase prices were segmented and subdivided according to the
output and installation form of the equipment used. Finally, bonuses were introduced
to encourage innovations (landfill gas, biogas, etc.). This facilitated the gradual
introduction of various types of large-scale power generation facilities.
21 Opportunities for Renewable Energy Introduction Through Feed-in Tariff (FIT). . .
399
21.2.1 Retaining a Diversity of Renewable Energy Power
Sources
In Germany in the 1990s, the ratio of hydroelectric and onshore wind power
generation was the highest among renewable energy power sources. In the twentieth
century, the proportion of photovoltaic and biomass power generation gradually
increased, while the proportion of hydroelectric power generation decreased.
Renewable energy power generation in Germany in 2014 was mainly composed of
onshore wind (34%), biomass (26.8%), solar (21.8%), and hydroelectric (12.8%).
Unlike in Japan, where solar power generation dominates, renewable energy in
Germany has maintained a degree of diversity.
Prior to 2000, renewable energy in Germany was biased toward onshore wind.
From 2008, the speed of introduction of solar power generation facilities has
gradually outpaced that of other renewable energy facilities. Since then, the German
government has unsuccessfully tried to reduce the amount of solar power generation
installed, but by 2012, solar accounted for 46.7% of renewable energy. The share of
photovoltaic power generation in renewable energy has since gradually decreased,
and the balance of renewable energy power has improved. Germany has succeeded
in maintaining the current diversity of power sources through the PDCA (plan-docheck-act cycle) process. In particular, the history of revisions to their Renewable
Energy Law (EEG Law) is of great significance to Japan (Takeuchi 2015).
The Electricity Supply Act, which is thought of as the origin of FIT, obliged
electric power companies to purchase power generated by renewable energy sources
in their supply area at a fixed ratio (90%) of the retail price of electric power. Since
all renewable energy purchase prices were set at the same level, only the cheapest,
onshore wind power, was introduced in large volumes.
The EEG of 2000 was created against this background. The law established the
main framework for FIT today. Unlike the Electricity Supply Act, the purchase price
of renewable energy power under the EEG Law can be adjusted on a cost basis for
each type of renewable energy, rather than being set at a fixed ratio. In this way,
biomass and solar power generation were gradually introduced. For solar power
generation, which was expensive at the time, an upper limit of 350 MW was set in
order to reduce total introduction cost (in July 2002, the upper limit was raised to
1000 MW).
A revision of the EEG Law in 2004 removed the upper limit of installed capacity
for solar power generation facilities. The purchase price of photovoltaics, especially
small-scale photovoltaics, was also significantly increased and that of geothermal
power was raised. Purchase prices were segmented and subdivided according to the
output and installation form of the equipment used. Finally, bonuses were introduced
to encourage innovations (landfill gas, biogas, etc.). This facilitated the gradual
introduction of various types of large-scale power generation facilities.
21 Opportunities for Renewable Energy Introduction Through Feed-in Tariff (FIT). . .
399