Germany 2002 Review INTERNATIONAL ENERGY AGENCY
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INTERNATIONAL ENERGY AGENCY Energy Policies of IEA Countries Germany 2002 Review INTERNATIONAL ENERGY AGENCY Energy Policies of IEA Countries Germany 2002 Review INTERNATIONAL ENERGY AGENCY ORGANISATION FOR 9, rue de la Fédération, ECONOMIC CO-OPERATION 75739 Paris, cedex 15, France AND DEVELOPMENT The International Energy Agency (IEA) is an Pursuant to Article 1 of the Convention signed in autonomous body which was established in Paris on 14th December 1960, and which came November 1974 within the framework of the into force on 30th September 1961, the Organisation Organisation for Economic Co-operation and for Economic Co-operation and Development Development (OECD) to implement an inter- (OECD) shall promote policies designed: national energy programme. • to achieve the highest sustainable economic It carries out a comprehensive programme of growth and employment and a rising standard energy co-operation among twenty-six* of the of living in Member countries, while maintaining OECD’s thirty Member countries. The basic aims financial stability, and thus to contribute to the of the IEA are: development of the world economy; • to maintain and improve systems for coping • to contribute to sound economic expansion in with oil supply disruptions; Member as well as non-member countries in the process of economic development; and • to promote rational energy policies in a global context through co-operative relations with non- • to contribute to the expansion of world trade member countries, industry and international on a multilateral, non-discriminatory basis in organisations; accordance with international obligations. • to operate a permanent information system on The original Member countries of the OECD are the international oil market; Austria, Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, • to improve the world’s energy supply and Luxembourg, the Netherlands, Norway, Portugal, demand structure by developing alternative Spain, Sweden, Switzerland, Turkey, the United energy sources and increasing the efficiency of Kingdom and the United States. The following energy use; countries became Members subsequently • to assist in the integration of environmental and through accession at the dates indicated energy policies. hereafter: Japan (28th April 1964), Finland (28th January 1969), Australia (7th June 1971), * IEA Member countries: Australia, Austria, New Zealand (29th May 1973), Mexico (18th Belgium, Canada, the Czech Republic, Denmark, May 1994), the Czech Republic (21st December Finland, France, Germany, Greece, Hungary, Ireland, 1995), Hungary (7th May 1996), Poland (22nd Italy, Japan, the Republic of Korea, Luxembourg, November 1996), the Republic of Korea (12th the Netherlands, New Zealand, Norway, Portugal, December 1996) and Slovakia (28th September Spain, Sweden, Switzerland, Turkey, the United 2000). The Commission of the European Kingdom, the United States. The European Communities takes part in the work of the OECD Commission also takes part in the work of the IEA. (Article 13 of the OECD Convention). © OECD/IEA, 2002 Applications for permission to reproduce or translate all or part of this publication should be made to: Head of Publications Service, OECD/IEA 2, rue André-Pascal, 75775 Paris cedex 16, France or 9, rue de la Fédération, 75739 Paris Cedex 15, France. TABLE OF CONTENTS 1 SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS ...... 7 2 ORGANISATION OF THE REVIEW .............................. 15 3 ENERGY MARKET AND ENERGY POLICY ........................ 17 4 ENERGY AND THE ENVIRONMENT ............................. 35 5 ENERGY DEMAND AND END-USE EFFICIENCY .................. 45 6 OIL ........................................................... 53 7 COAL ......................................................... 63 8 NATURAL GAS ................................................ 73 9 RENEWABLES ................................................. 91 10 ELECTRICITY AND HEAT ........................................ 99 11 RESEARCH AND DEVELOPMENT ................................ 125 A ANNEX: ENERGY BALANCES AND KEY STATISTICAL DATA ......... 133 B ANNEX: INTERNATIONAL ENERGY AGENCY “SHARED GOALS” . 137 C ANNEX: GLOSSARY AND LIST OF ABBREVIATIONS ............... 139 3 List of Tables 1. Energy Taxes in Germany, 2000 ................................... 30 2. The Eco-tax, 1999 and 2003 ...................................... 30 3. Sectoral Contributions to CO2 Reduction in the National Climate Protection Programme .............................................................. 40 4. Power Stations Using Clean Coal Technologies ...................... 41 5. Energy Efficiency Indicators ....................................... 47 6. EU Fuel Standards for Sulphur and the Estimated Impact of the Eco-tax on the Sulphur Contents of Fuels in Germany ....................... 59 7. Total Coal Supply ................................................ 63 8. Financial Aid for the German Coal Industry, 1997 to 2005 .......... 69 9. Major Pipelines .................................................. 78 10. Import and Export of Electricity, 1990 to 2000 ...................... 103 11. Electricity Network Access in IEA Countries ......................... 108 12. Unbundling of Transmission System Operators in IEA Countries . 110 13. German Nuclear Power Generation, 2000 to 2001 ................. 111 14. Net Remaining Generation for Individual Reactors as of 1 January 2000 . 113 15. Federal Government Energy R&D Budget ........................... 127 List of Figures 1. Map of Germany ................................................ 18 2. Total Primary Energy Supply, 1973 to 2010 ........................ 19 3. Total Primary Energy Supply in IEA Countries, 2000 ................. 20 4. Total Final Consumption by Sector, 1973 to 2010 ................... 21 5. Total Final Consumption by Source, 1973 to 2010 .................. 21 6. Energy Production by Source, 1973 to 2010 ........................ 26 7. Origin of Gross Energy Imports in Germany, 2000 .................. 28 8. CO2 Emissions by Fuel, 1973 to 2000 ............................. 36 9. CO2 Emissions by Sector, 1973 to 2000 ............................ 36 10. Energy-related CO2 Emissions per GDP in Germany and in Other Selected IEA Countries, 1973 to 2010 ...................................... 37 11. Total Final Consumption by Sector and by Source, 1973 to 2010 ..... 46 12. Energy Intensity in Germany and in Other Selected IEA Countries, 1973 to 2010 ................................................... 47 13. Final Consumption of Oil by Sector, 1973 to 2010 .................. 54 14. Fuel Prices, 2000 ................................................. 55 15. OECD Unleaded Gasoline Prices and Taxes, Fourth Quarter 2001 .... 56 16. OECD Automotive Diesel Prices and Taxes, Fourth Quarter 2001 ..... 57 4 17. German Coal Mines .............................................. 64 18. Final Consumption of Coal by Sector, 1973 to 2010 ................. 65 19. Assisted Hard Coal Production in IEA Countries, 1991 to 2000 . 68 20. Aid per Tonne of Coal Equivalent, 1991 to 2000 .................... 68 21. Final Consumption of Natural Gas by Sector, 1973 to 2010 .......... 76 22. German Gas Market Structure ..................................... 78 23. Import and Export of Gas, 2000 ................................... 79 24. Natural Gas Infrastructure ......................................... 80 25. Gas Prices in IEA Countries, 2000 ................................. 84 26. Gas Prices in Germany and in Other Selected IEA Countries, 1980 to 2000 ................................................... 85 27. Final Consumption of Electricity by Sector, 1973 to 2010 ............ 102 28. Electricity Generation by Source, 1973 to 2010 ..................... 103 29. Import and Export of Electricity, 2000 .............................. 104 30. Electricity Prices in IEA Countries, 2000 ............................ 106 31. Electricity Prices in Germany and in Other Selected IEA Countries, 1980 to 2000 ................................................... 107 5 1 SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS SUMMARY The German government has a challenging energy policy agenda. It has decided to phase out nuclear power and it has established ambitious targets to reduce greenhouse gas emissions. While it is not yet clear how nuclear power will be replaced, it is likely that energy efficiency and conservation, co-generation and renewables, as well as fossil fuels, will play a significant role in Germany’s energy supply. To ensure that these policies will be cost-effective, their development and effectiveness will need to be closely monitored. Energy security is an important issue for Germany as the country has limited indigenous energy resources. Moreover,the decision to gradually phase out nuclear power by 2025 will increase Germany’s reliance on imports of coal and natural gas, which currently represent 27% and 78% of demand for these fuels. Germany will also continue to depend heavily on imported oil, at about 40% of its total primary energy supply. To address these energy security issues, Germany is focusing on the development of domestic fuels and renewables, energy end-use efficiency, and on good relations with energy exporting countries. For a long time Germany has managed to significantly reduce the emissions of greenhouse gases (GHG) and air pollutants. These reductions have resulted partly from the so-called “fall-wall effect” 1 in the New Laender where industrial restructuring has taken place, but