Feed-in tariffs for renewable electricity – Hans-Josef Fell, MP

it is a great pleasure for me to stay you front of you today to speak about the German experience of renewable energies it is a great pleasure for me because i’m visiting also here at NU my son and we us and so i’m happy to stay also on familiar issues with you please allow me to make me some mistakes in my language I’m not a native speaker and then I remember on my school time my teacher told me you never will learn English so I’m happy when you can understand me the German experience in renewable energy sectors is very astonishing even for me personally instead of the fact that perhaps I am one Muslim most optimistic guys who promoted 10 years and 15 years ago renewable energy sector in Germany but now in the meantime we have an innovation and technology process that is very very important and it leads to the fact that we now can stand in front of a world where we can solve a lot of crisis who are connected together with an energy system let me speak first about this crisis because it is important to Z this crisis and the energy issues that leads to such crises and then we can see easily that renewables are easy to solve such a lot of crisis we have speak oil crisis the scarcity of fossil and nuclear resources with rising oil prices we have secured warming crisis we have surprises on economic systems what we have in Europe at the moment very very hard and it is more connected with energy systems then a lot of people believes because the over depth it Patchett’s in Greece in Italy in Spain and even in Germany are more connected with energy taxing on tax exemption for energies and bring us to really serious really serious economic problems and you’ll see the peak oil in the world is a most overseen problematic situation we see now rising oil price and most of the scientists see or we do not know whether oil prices I think there is enough oil on the world but they overlook there isn’t enough oil in the world this isn’t research of the energy watch cope I founded it six years ago 2006 made a first under pendant research how much oil is in the world and will the word purdue’s in the coming years and we forecasted with energy watch coves that in 2030 so hoyle the old the complete oil production will be only a half of today’s or production we could see that from 2006 till today we were on a plateau on the oil production of good oil in the world and this plateau was instead of the facts that the world needs more and more oil look to China the increasing economy new cars and others but the oil fields on the world could not produce more oil and this is a reason behind the rising oil prices and this will become a more serious problem when we now come soon next or over next year in the time where we have not only a plateau but a decreasing of oil production the discussion is only does it decrease two percent or six percent per year no one in the world is prepared on this problem on an economy 11 we are so dependent on oil not only in cars in industry in heating and cooling sector but also in chemistry sector also an aquaculture sector one third of our foot is combined with oil but the other conventional resources fossil resources and also solution to fill up the gap wat in oil they come we see so writing coal prices already today

on the world cold market so decreasing in 2008 was financial crisis but increased since this time here you see the natural gas prices decreasing also a lot of people think then all we go to unconventional oil deep sea oil or others or oil sands in Canada what will happen with unconventional oil we must learn from this accident and damage of hundred billion u.s. dollar from state of Louisiana set and BP is willing to pay only 20 billion US dollar and this increasing of the conventional energy resources prizes leads to in very serious economic crisis crisis first you should compare the tax subsidies worldwide for renewables with fossil this highlights the first point often is said renewables are highly subsidized no it is not true fossil is highly subsidized worldwide on in high level and the subsidizing in fossil is increasing very rapidly with a rising high price because the government’s feel social conflicts when the gasoline price and other prior rising and also give more tax money to give the consumers of energy the same price what they are used in the past years in only one year the text money subsidy increased worldwide for 312 billion US dollar to 409 next year we will see a lot of more this is very serious because we have worldwide public budgets they are over epted and it will need available when we go on visited situation that the national budgets will go to national bank arts nearly no one sees this inter connection but it is reality this scientific report came from the international energy agency in Paris on the other side we have such serious development base climate warming instead of the facts that some scientists believe it’s no climate warming it is a climate warming when you look to the details the critics are not really on a good scientific basic and it is clear the world temperature is rising with the greenhouse gas emissions we have already an overloaded atmosphere with carbon 390 parts per million and we have to reduce this when we go to the target often discussed in the world like in Durban last climate conference to achieve and target two degrees global warming I will say I feel it we have no such climate accidents a lot in the world even in Queensland with floods or in Victoria fire is burning woods and others and worldwide big big disasters and when we see this disasters are at zero point eighty degrees global warming what will happen when we have two degrees no we must go another strategy cooling down tears and this is possible this is possible when we go to combined strategies first is we have to stop the greenhouse gas emissions not only to reduce is this because every reduced greenhouse gas emission leads to an higher concentration of greenhouse gases in the atmosphere we have to stop Prine house gas emissions this is possible with hundred percent renew boots because eight percent of the greenhouse gas emissions are connected with the use of oil natural gas encoder lens cap when we Kansas issues we have nearly zero emissions and we need an second pillar take out carbon from the atmosphere I’ve up do not want to speak so many in my lecture about this but we can convert plants to Yuma soil we could create clean the deserts or other for Australia a wonderful strategy but sorry this

picture is not included this shows a picture from Egypt desert where hundred years long were only sent on an area in only one year they go up new plants in this desert area with yet over oil plans this year tova oil goes to the machines to make electricity for the urban villages and it leads to more cleaning up the areas that food can go also so it is possible green deserts to combine it with energy and food production to fight against food shortages and energy shortages and to go to a hundred percent renew the words is also possible this isn’t plan from Stanford and Davis universities both from California you know stanford university is very famous in the world because there were some students in the 80s this student said to the leading opinion in the word by the by the way forms achieve of the leading computer technology manufactures IBM in this time this chief told the students a personal computer will never come to the world the students like Bill Gates or Steve Jobs said we are not interested in his opinion we work on it and it did not take 100 years time but we hear often than we were told when in orbits will come it is so hard it will take hundred years right technology popular processes are much much faster laptops were in the world within 20 years we couldn’t believe ten years ago that we could have a mobile phone like this in our pocket but it is their technology processes are very fast and mr. Jacobson & Delucca from Stanford and Davis made a plan for the world to come within 20 years by to health 2030 two hundred percent surfed renewables the whole energy system not only electricity system it is possible on a technology you we would need about the half in his plan in their plan by the vent power what would we need so many wind power stations what’s the most people believe and we would serve the half of the energy of the world by wind power they found out this new ones 5-megawatt wind power they would need only 3.2 million wind power stations and they recognize what it is on a technology process when we can produce in the word yearly 17 million cars and trucks what would be in 20 years 3 million wind power stations it is ridiculous to speak about renewables cannot come fast on in technology pauses and they found out even a non-financial process is easy yes we need a lot of money to switch two hundred percent in humans hundred thousand billion u.s. dollars can you imagine this number hundred thousand billion u.s. dollar this really great I asked energy watch group what is a fuel bill phone for the world in 20 years when we do not switch to renewables because wind power and solar power hydropower do not need fuels to operate with electricity in desert what could go also to Cass and to the traffic systems the whole fuel bill for the birds on the basic of surprises of 2008 recent why size of twenty percent would be two hundred thousand billion US dollar when we do not switch to renewables so now my question to you students what is cheaper to go to renewables what saves the economy of the world to go on with a conventional resources will lead to a lot of economic crashes and it happens

already this is an investment of renewables in the last year’s you can go see how fast it goes and the more the invest into renewables the cheapest they become it is in self accelerating process and it leads all so to a high emission cutting this is example of Germany we emit at the moment 960 million tonnes when we would not have renewables in the German economy we would emit 120 million tons more today it is already the best strategy and the best success in climate protection and often we were told it is impossible to go a fast way to renewables in two thousand we had about six percent renewable share in electricity sector in Germany it was mostly nearly mostly only the old hydropower nearly nothing in wind power nothing in solar nothing with geothermal nearly nothing in bioenergy and we said in target in our law in our feed-in tariff law we want to achieve till 2010 twelve percent we were told it is unrealistic it is unachievable impossible it is typical for green politicians they have no sense of econ me but you see we reached two thousand eleven twenty percent much more much faster it is possible when the political framework is right and this political framework goes under one important headline let’s earn money with climate protection technologies different feed-in tariffs that is high enough that the investment of private people is a positive profitable investment this is a basic of the feed-in tariff law and it works very very good yes River told and the last year when your face out nuclear you must buy a lot of electricity from the force nuclear power stations no it isn’t 2011 we cut down eight nuclear power stations and even in 2011 Germany was an electricity exporter this federally we had a very hard winter in whole Europe and because of the fact that France has a lot of electricity heating they need a lot of electricity double so high that Germany Germany has more efficient isolated houses and others and therefore they do not need so much electricity in wintertime but we had insist federally a lot of rent and a lot of sunshine and though they could help Falls with electricity when we would not have sis twenty percent renewables in the Chairman great I believe false would have an black out in electricity systems is favoring more speed is otherwise into public opinion totes and we see new situations we were told last year when you face out nuclear then your cold power stations come under pressure they must produce so much electricity to eagle eyes the nuclear cut down no it is otherwise stay Ark is the biggest coal operator in Germany now he announced a fortnight ago they would shut down some nuclear power stations and would now change the business for renewables because coal power has no economic future this is important for you here in Australia because a lot of mining operators want to sell code to

Germany but we will close down it and then this will happen also in the rest of the world because Zola Advent is cheaper than coal operating over by the australian coal I fear so the lot of investment in coal mining is stranded investment here in Australia Netherlands the same last year’s announced they want to build up a new nuclear power station to serve Germany they would need cheap electricity now you can see the plan because of all there is so much electricity in the European grid because of the wind and solar Germany and this lot of renewables makes electricity so cheap that they have no economic basic for the new nuclear power station not in knoebels I expensive say lower already surprise on the German electricity stock market because of one thing every time when a lot of wind is blowing and a lot of sun is shining we have so much electricity in secret that the great operators have to power down at this time other power stations and first Lisa takes the most expensive one when they do not produce electricity the average price of the whole electricity will top down renewables already lower the price of electricity in Germany it is not an expensive burden and it banks already a new economy in 1998 we had 30,000 deployment in the renewable branch today we have three hundred and and 2000 and it is not only in the new companies we have a lot of thousands of new companies within 10 years it is also in existing companies the vent industry is a second biggest buyer of steel in Germany it brings a steel industry a lot of new business the solar industry is one of the biggest buyer of glass clinks a glass industry a new big business the German renewable branch is now’s a stabilization factor in crisis situation during financial crisis 2008 and 2009 it was the only branch of Germany who increased anymore and orders new jobs we have another country in the world who came as fast out of the financial crisis 2009’s Germany it was China both countries have an right and successful strategy for renewables perhaps this is a reason by both countries come fast be out of the financial crisis and often it is told it is a burden for the economy to go with renewables because of the higher electricity price yes we have more calls because of feed-in tariffs for the electricity consumers ten percent of the electricity price in about of the charity electricity consumers this is in the hole in 2011-12 billion euro more cost but this more costs are overcompensated on other points in the german economy we could avoid import costs for oil gas coal and uranium by the amount of nine billion where is the burden and we could avoid external calls paid by tax payers not by the electricity consumers by the waste management of coal power operators or others we could avoid 20 billion euro by more cost of 12 billion euro renewables unknowable for the economy they are already today a benefit and this more costs are mostly some more costs we have to pay then the photovoltaic was very expensive six seven eight years ago today it is very cheap the new investment into photovoltaic and others becomes more and

more people this is a feed-in tariff what we paid yearly in the next year for photovoltaic operating look to 2012 for big rooftop systems we paid eighteen cents per kilowatt hour twenty cents the last year and they happened one point when we drop down this feed-in tariff the investment increased because of topping towns of production costs last month’s in last year desember in Germany were invested three megawatt photovoltaic in only one month it is double the suns and Australia has in the hole for the attacks it is not difficult for the industry to switch or trail Australia very fast two hundred percent renewals and we have even new technologies who now can have to manage great stability reactive count is very important for voltage stability frequency stability and others better is combined with a new photo otay converters can but use reactive current even in night when no Sun radiation is there we can use it when we close down coal power stations were playing this good stability systems we can use it also with photovoltaic systems now in the future new technologies are already available forces and the cost goes down we see it this is a study from Duke University North Carolina not so many solar 88 much more clouds than in Australia but a new photovoltaic system as a result of the study but use cheaper electricity’s and in new nuclear power station I cannot understand why Obama gives loudest for new nuclear operators to you remember last week he announced it but I saw he gives a lot of tax money that the nuclear operators will really go to operating he could avoid this text money when he goes to renewable electricity and when you do not compare new investment with new investment but old investment after financial period is over there are more astonishing facts since it isn’t research from the Congressional Research Service from the US Congress in Washington the cheapest variable cost because what we need after financing is over comes from solar from it much cheaper so coal or natural gas or nuclear today and the price for the technology is topping and dropping anymore but it comes not by himself because what we see now in Germany is the pulses that’s a old company’s fight for survive so Caesar economic pressure from renewables I’d want to go on this nuclear and coal power stage nucleus I cannot because we have a law to face it out but coal power not but there is a come under economic pressure and so they fight with the politicians to influence them to make laws that do not bring renewables very fast the laws what we would need to accelerate hundred percent renewables would be a lot of different laws firstly we need a basic that’s investment into renewables is profitable this is a noise for feed-in tariffs second is we can give tax reliefs for renewables and we must cancel subsidies for all what plays climate gas emissions carbon tax is very important it can realize the external costs that are not

paid by electricity consumers congratulation to your carbon tax year in Australia we need an offensive research spoken a lot of technologies who are not yet really ready for mass market but in research money we can give them we can accelerate it and we need an education offensive for renewables and organic farming and others this education offensive is not only important on universities and schools to influence a young people we need also an education for the elder people by the way politicians managers and others they must learn to go on with the conventional energies is a burden for the society and renewables are the solution photos no successful climate protection policies are quote our certificate systems or emission trading emission trading is not successful but it is often discussed to take it instead of it in tariffs because a lot of people know when we can make emission trading then we can give the opinion to the public yes we are doing a lot for climate protection but in reality it isn’t and they can avoid a good based function and feed-in tariff law look how important a good strategy with feed-in tariff is look in the 90s Japan was a world leader in photovoltaic systems they had a very good subsidy program Germany did nearly nothing there was a feed-in tariff for photovoltaics not but not high enough to make a profitable investment we made it in two thousand with Amanda officer renewable energy and with a feed-in tariff law Germany overcame Japan very fast the world leader in following tags and you see you have a lot of solar radiation in Australia but nearly no photovoltaic systems it is not because of the solar radiation it is because of not being feed-in tariff laws here you have some you had some in your states that we are successful and those are coal operators fight it to cancel it and they were successful we see but it is very important to take not any feed-in tariff law it must based on a very detailed organized law system we have about 60 feed-in tariff laws in the world a very political successful story but only a few of them work really really good in Italy in Spain in Germany in China China set a target in the last five years plan for wind power and this target was because of the feed-in tariff five times over fulfilled within five years key points of an effective feed-in tariff law are privileged gate access you would need this in Australia because your grid operators are combined with electricity producers and the endless of the electricity road users to allow no competive leads that the grid operators will refuse it we made in privilege get access by law and so everyone can come with his electricity into the grid yes we have a bottle but this border is only when the grid is full with hundred percent Anubis first they have to cancel the board action nuclear called industry and natural gas the feed-in tariffs have to be sufficient funding must be paid by a electricity rate not by text money because when you paid by text money’s the finance minister will say next year oh my budget is over epted we must

cancel feed-in tariff this happened two years ago in Spain there was a very successful feed-in tariff law in Zola and even say paid and to high feed-in tariff for photovoltaics and then you can imagine what happened a lot of investors came and then the finance minister said all my budget and the Kansas the law and to 20,000 employment were cancelled within some months therefore do not spread it on text money only by electricity press important is no cap for feeding television because when you make and cap for one year the investors for a new manufacturing when say oh I don’t know if in the next year we have enough big market and they invested to factor is only went to see and markets of goes on for many years this was a basics at a lot of manufactures invested in Germany into the factories a guaranteed parrot period of enumeration and really this is outside of the feed-in tariff law you need a very good functioning permission policy we have some places in the world you get life easier a license for nuclear power stations and for the big power station perhaps not really but what I hear sometimes with killing birds and others from peoples who never talk about on vironment suddenly in wind power but pleasure hope we can be happy not everyone’s about the investment flows very fast and the biggest leader in the world is now China firstly only because energy hunger but now says he also it is a very good climate protection strategy and climb china is informed of and climate protection law it would be the first in the world even Germany has no law for climate protection and included in this app oval not important in this it is amending of this law they include targets regional targets for renewable energies and his targets are very high in China and in China they have already in some regions in the northern part nearly to Mongolia they have the problem when they want to increase renewables and they want to do it they have to power town called power stations then they will not buy coal from Australia even China it comes very fast and China will now invest this year not only invent power where they are very successful so we’ll invest also in photovoltaic system whether here now they make plans and 4 gigabyte plants some giggle at plants this is very good for the planet it is a problem for our charm technology leadership so you see we have the chance to cool down the planet we must make a new strategy that the investment will go to climate protection and not to climate polluting and this is a task for the finance industry let’s work together worldwide to make in no new climate alliance with a finance industry they can earn money and this makes no problem for the environment when we go to such a main we must take all renewables all renewables are very important because some have problems like fluctuations are so stored renewables like hydropower or bio energy and when we take all renewables together with more efficient energy consumption we can go very fast to such and climate protection strategy and when you want to hear more about

this some months I want to publish a book you can see here are some flyers about it global cooling as possible when you are interested you can take some with you it will be published in English we’ll have no problems you are invited to charges and I’m very happy to stay with you and then you have some questions or comments please let’s speak about it you