Various newspapers have started to published initial information on a ministerial draft for the new Electricity Market Act (Strommarktgesetz). The draft contains many elements from the the White Paper presented at the beginning of July and the government agreement of early July. It rejects proposals to introduce a capacity market, and instead relies on the concept of an “electricity market 2.0”, with additional capacity, climate and grid reserve mechanisms to secure generation adequacy.
Archive for the 'Climate Change' Category
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A ministrial draft for a recast of the Combined Heat and Power Act (KWKG) is now available on the internet. KWKG promotes power generated in CHP plants as well as heating and cooling networks and the respective storage facilities. The draft does not change the goal of a share of power generated in CHP plants of 25% by 2020, but contains many other amendments. They correspond mostly to the key points we informed about on 17 July 2015. The Federal Association of the Energy and Water Industry (BDEW) has voiced criticism and demanded changes.
Measures to increase energy-efficient renovations of buildings and energy efficiency in general as well as other measures included in the National Energy Efficiency Action Plan (NAPE) are the biggest items aside from broadband expansion that increased state aid in the federal budget for 2016, the Federal Ministry of Finance (BMF) said. Government approved the ministries 25th report on state aid yesterday.
In early July the Federal Ministry for Economic Affairs and Energy (BMWi) presented key points for measures to further promote the German energy transition (Energiewende) towards a mainly renewable energy supply. They included the proposal to gradually transfer some of the oldest coal-fired plants with a capacity of 2.7 GW to a capacity reserve (for which a cost-based remuneration would be paid) and close down the plants four years thereafter. The department of European Affairs that advises Parliament (Bundestag) has expressed doubt about the compatibility of the plans with EU law, the spokeswoman for climate policy for the Green Party and media sources said citing from the unpublished report.
Interesting new provisional data by the International Energy Agency (IEA) for 2013 show that driven by generation in non-OECD countries, electricity generated by coal reached its highest level yet at 9,613 TWh. This represents 41.1% of global electricity production. In the same year renewable electricity generation overtook natural gas to become the second largest source of electricity worldwide producing 22% of total electricity or 5,130 TWh. Global non-hydro renewable electricity also surpassed oil-fired generation for the first time ever in 2013, rising to 1,256 TWh or 5.4% of global electricity production.
Who’s Who Legal in July published its annual list of the world’s leading practitioners in the energy area for 2015. I am happy to report that I was again included in this list.
The Foreign Office has published an English language brochure “Who is Who of the Energiewende in Germany” that is intended to serve as a guide to better understand the Energiewende (energy transition) in Germany. It informs briefly about the goals of the Energiewende and provides helpful information on contact partners in politics, industry and society.
On 8 July 2015 the European Parliament agreed to the reform of the ETS, including the introduction of the Market Stability Reserve (MSR).
Yesterday the government announced what it called a milestone decision for the German energy transition towards renewables and its CO2 savings goal. The government agreed to scrap its controversial (in our view unlawful) plans to impose a climate levy for conventional power plants to save CO2. Instead some of the oldest coal-fired plants with a capacity of 2.7 GW shall become back-up plants. Besides the government wants to promote energy efficiency, speed up grid expansion and ensure that the decommissioning provisions made by the nuclear power operators cover Germany’s nuclear exit costs. Costs for consumers still remain largely unclear. Information regarding state aid implications was also not provided.
Reports are increasing about an alternative proposal for the controversial climate levy. A a number of coal-fired power plants shall allegedly be made part of a pool of back-up power plants, for which the operators would receive a remuneration. The government is to decide on 1 July, various media sources say.