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Agora Energiewende_German Power Market 2019 Summary

  • Text
  • Electricity
  • Consumption
  • Renewable
  • Prices
  • Climate
  • Emissions
  • Renewables
  • Plants
  • Lignite
  • Energiewende
  • Summary
  • Deutschland.de

June 8 th

June 8 th 2019: The combination of high renewable generation and low consumption result in a negative price of minus 42 Euros per megawatt hour (daily average) Net electricity generation and consumption and emission factor (05-12 June) Net electricity generation and consumption (05-12 June) Trade flows, wholesale power price and export balance (05-12 June) Net power production and consumption (GW) 90 80 70 60 50 40 30 20 10 0 Net power production and consumption (GW) 90 80 70 60 50 40 30 20 10 0 GW Import Export 18 14 10 6 2 -2 -6 -10 100 80 60 40 20 0 -20 Euro/MWh -40 -60 -80 -100 Biomass Offshore wind Solar Consumption Hydro Onshore wind Conventional power plants Nuclear Hard coal Pumped hydro Consumption Lignite Natural gas Other SE AT CH CZ DK FR NL PL LX Export balance Power price Agora Energiewende (2019) Agora Energiewende (2019) Agora Energiewende (2019) Political developments and outlook 2020

Political developments and outlook in 2020 (1) Coal exit: The Coal Commission presented its final report in January. In it, a compromise was struck which provides for a gradual phase-out of coal by 2038, 40 billion euros in structural aid for the regions affected as well as compensation for power plant operators. Despite having passed the Structural Aid Act in Cabinet in August 2019 and the ongoing discussions taking place in the Bundestag and Bundesrat, the legal implementation of the coal phase-out is still missing. Climate Protection Act: The Bundestag passed the Climate Protection Act as part of its climate package in November 2019. The act sets annual sectoral climate protection targets from 2020 onwards, obliges the responsible ministries to develop appropriate measures in their respective areas and puts in place greenhouse gas neutrality by 2050 as a long-term goal. CO 2 pricing for buildings and transport: The Fuel Emissions Trading Act (BEHG) was passed by the Bundestag in November. It includes national emissions trading schemes for the building and transport sectors starting in 2021. The CO 2 price will be fixed until 2025 (no trading). According to the results of the mediation committee in December, the price will start at 25 euro/tCO 2 in 2021 and increase to 55 euro/tCO 2 by 2025. Political developments and outlook in 2020 (2) Renewable energy: Contradictory policies were included in the climate package: On the one hand, the expansion targets for renewables are to be increased so that the goal of reaching a 65% share of total generation by 2030 will be made possible. Whilst on the other hand, new regulation limiting the distance of onshore wind turbines to a 1000-metre distance from residential buildings is planned to be implemented. The amendment of the Renewable Energy Sources Act due in 2020 is therefore likely to give rise to heated energy policy debates. Combined heat and power/green district heating: An amendment to the Combined Heat and Power Act has been planned for 2020 in order to promote the switch from coal-fired CHP plants to gas and the conversion of district heating networks to green district heating. Tax incentives for building retrofitting and energy standards: Tax incentives for house renovations were put in place in December 2019 and are now in force - home owners can take advantage of the tax credit instead of the KfW subsidy. The Building Energy Act presented by the Federal Ministry of Economics has not yet been approved by the Federal Cabinet. In its current draft version, it does not contain any tightening of building standards and therefore does not contribute to climate protection and energy system transformation.

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