© BMWi / Maria Parussel
An efficient start to 2016 – but plenty more planned
As of 1 January, new rules have been in place that are designed to increase energy performance. And with 2016 being a leap year, we have one day extra in which to do this. What has the new year brought in terms of the energy transition; what is planned for 2016 – and how will this actually affect us in our everyday lives? Here are the most important reforms at a glance.
Important steps and big targets for 2016
The measures that have come into effect on 1 January or will enter into force during the course of the year will provide a considerable boost towards achieving Germany’s energy targets. By 2020, Germany is to have cut its primary energy consumption by 20 per cent compared to 2008. During the same period, carbon emissions are to be cut by a massive 40 per cent. Furthermore, by 2025, renewable energy is to account for up to 45 per cent of electricity generation in Germany. We have already made good progress on this over the last year, with wind, solar, and biomass accounting for just under a third of electricity production in 2015. This has made this trio the most important source of electricity in Germany.
In 2016, consumers will benefit from the following changes in particular: boilers that waste energy will be revealed as the energy-guzzlers they are, and funding will be made available for the installation of new heating systems to replace them. It will also be easier to recognise which ventilation units and extra-large fridges use less energy.
Energy efficiency: in force since January
The new year has brought with it a whole host of new rules and programmes which are designed to help people in Germany use energy more conscientiously. This will not only enable consumers to save energy, but will also make less of a dent in their bank balance.
- Campaign to modernise boilers: since the start of the year, the energy transition has also been coming to household boilers. This is an area where a great deal of energy can be saved. Just under 20 per cent of gas and oil-based heating systems in use today are more than 22 years old and are therefore very inefficient. As of 1 January, public grants are available for home-owners that would like to replace their old, out-dated heating system with a modern, more energy-efficient one, and would also like to optimise their heating system in general (e.g. by insulating their heating pipes or installing modern thermostatic heads). Funding is similarly available for those who want to have their house façades insulated and to combine this with the installation of a ventilation system. This funding provision is set out in the Energy Efficiency Incentive Programme, which came into force at the start of the new year. Before you think about replacing your heating system, you might like to have a look at how much energy your system is actually using. This will now be much easier to do, as from 1 January, all boilers that are more than 15 years old will gradually be marked with the new energy-efficiency label for old heating systems. The label shows at a glance whether the boiler is fit for the future or not. It will be issued by heating technicians, chimney sweeps, and selected energy advisers. These specialists will also advise consumers about ways in which they can save energy, as well as informing them about any grants that are available.
- Fresh air now comes in new colours: since the beginning of the year, ventilators and ventilation systems for domestic living space now have to be marked with an EU efficiency label. Many people are already very familiar with the colour-coded efficiency scale from their fridges or washing machines. The label allows consumers to see at a glance how efficient a particular appliance is.
Energy-efficiency can now be bolstered even further
- Energy-efficient products can help to create change: the more households that use particularly efficient products, the lower energy consumption will be right across Germany. This is why the Federal Ministry for Economic Affairs and Energy is soon to launch an information campaign which, as part of its ‘Top Runner Initiative’, aims at bringing energy-efficient products – or top runners – more quickly to market. Manufacturers and shops will also be involved in the campaign so that more energy-saving products are developed and sold.
- EU label for extra-large fridges: from July 2016 onwards, the labelling rules that apply to ventilation systems and household appliances will also apply to extra-large fridges – such as those used by pubs and restaurants. This means that commercially used cold storage units will also be marked with a colour-coded EU efficiency label.
- Funding for energy efficiency wherever this comes cheap: the first half of 2016 will see the launch of a new funding programme entitled ‘STEP up!’ – a competition designed to encourage companies, energy-providers, and public utilities to look for the most cost-efficient ways of saving electricity. Funding will be awarded to the company that can offer the greatest savings in electricity consumption per euro of funding invested.
Mitigating climate change: reducing carbon emissions by using more CHP
Increasing the efficiency of combined heat and power (CHP) installations can help us to reduce our carbon emissions. This fact has now been reflected in a revision of the CHP Act. The updated Act, which entered into force on 1 January 2016, is set to reduce carbon emissions by around 4 million tonnes up to 2020 by raising the use of CHP. But how does CHP work? Combined heat and power is a special technology that enables both electricity and heat to be generated at the same time. It works by allowing the fuel – such as gas – to be used in a way that is particularly efficient, leading to fewer carbon emissions. This is why the Federal Ministry for Economic Affairs and Energy has doubled the amount of funding allocated to the technology – raising it from €750 million to €1.5 billion per year.
The electricity grid: expansion of the transmission grid better attuned to public concerns
On 1 January 2016, a series of changes relating to grid expansion entered into force. These changes are not only fundamental in a technical sense, but are also designed to raise the level of public acceptance for the construction of new power lines and to speed up the realisation of grid expansion projects that are vital to the energy transition.
- Priority on the laying of cables underground: in future, the big new electricity highways - high-voltage direct current (HVDC) transmission lines - will mainly be placed underground. This applies in particular to the large transmission lines running from North to South such as ‘SuedLink’ or ‘Gleichstrompassage Süd-Ost’ (South-eastern DC route). The use of underground cables is being more heavily tested in the alternating current transmission system across a total of what are now 11 pilot projects (previously 4).
- Determining the need for expanding the grid: up to now, the need for expanding the power grid in Germany has been assessed once every 12 months. From January 2016, however, the assessment cycle has been extended to two years. The first assessment into the need for expanding the grid will be based on the target year of 2030 (drafting of the 2030 Grid Development Plan). Based on the Grid Development Plan for the target year of 2024, the relevant legal acts (Federal Requirements Plan Act and Power Grid Expansion Act) have also been revised.
The new Renewable Energy Sources Act: greater competition in the market for green electricity
Energy efficiency and the expansion of the power grid are not the only key priorities for the energy transition over the coming year. The reform of the Renewable Energy Sources Act (EEG) is to make the expansion of electricity generation from the wind and sun both cheap and easy to plan – with a move away from fixed funding rates and towards greater competition. After all, the technologies used for wind turbines and solar power stations have long since matured and are ready for the market. The Federal Ministry for Economic Affairs and Energy will shortly present the bill, which is to be adopted by the Federal Cabinet within the first quarter of this year.
And more good news: Germany is fully on track with the schedule set out in its 10-Point Energy Agenda as it implements the energy transition. The Agenda contains the key projects of the energy reforms during the current legislative term and also sets out all that is planned for 2016. You will find an overview here.