GERMAN ASSOCIATION OF CONSULTING ENGINEERS RENEWABLE ENERGY Lessons from the German Experience of the Energy Transition A Guide for Engineers, Policymakers and Administrators RENEWABLE ENERGY RENEWABLE VBI Guide Verband Beratender Ingenieure (German Association of Consulting Engineers) Budapester Straße 31 10787 Berlin Germany Phone: 030 26062 0 Fax: 030 26062 100 Mail: [email protected] www.vbi.de Imprint Publisher German Association of Consulting Engineers Budapester Str. 31 10787 Berlin Tel: +49 (0) 30 26062 0 Fax: : +49 (0) 30 26062 100 Email: [email protected] Website: https://www.vbi.de/english/ If you are looking for a partner to help you plan your project: Legal responsibility VBI, Berlin, Germany Editors RENAC, Berlin, Germany Copyright © 2019 Verband Beratender Ingenieure (VBI) All rights reserved. First Edition, April 2019 Important note While the publishers, editors and authors of this work believe that the information and guidance given in this work are correct, all parties must rely upon their own skill and judgement when making use of them – it is not meant to be a replacement for manufacturer’s instructions, legal technical codes or professional advice. Neither the author(s) nor the publisher assumes any liability for any loss or damage caused by any error or omission in the work. Any and all such liability is disclaimed. Die Inhalte dieser Broschüre sind nicht als Rechtsberatung aufzufassen. Das Lesen dieser Broschüre kann eine umfassende Rechtsberatung nicht ersetzen. VBI Guide to Renewable Energy 1 Content 1 Introduction .......................................................................................... 8 2 Market Situation and Current Figures for Renewable Energy .................10 2.1 The energy transition in Germany ..................................................................... 14 2.2 International climate protection policies and emissions trading ................... 17 2.3 Incentive mechanisms .......................................................................................29 3 Technologies ........................................................................................36 3.1 The renewable energy mix .............................................................................36 3.1.1 Solar thermal – heat production ....................................................................39 3.1.2 Solar thermal – electricity generation ..........................................................43 3.1.3 Photovoltaics ...................................................................................................49 3.1.4 Biomass ............................................................................................................ 52 3.1.5 Biogas plants ...................................................................................................55 3.1.6 Wind energy – onshore and offshore, and its connection to the grid .........58 3.1.7 Geothermal ..................................................................................................... 61 3.1.8 Hydroelectric power ....................................................................................... 72 3.1.9 Hybrid systems ............................................................................................... 77 3.1.9.1 Definitions, characteristics, examples .......................................................... 77 3.1.9.2 Hybrid systems – design aspects..................................................................81 3.1.10 Combined heat and power (CHP) plants .......................................................85 3.2 Power transmission, distribution and management .....................................88 3.2.1 The challenge of renewables – the German power grid ..............................88 3.2.1.1 Grid integration of renewable energy ..........................................................90 3.2.1.2 Demand side management ...........................................................................94 3.2.1.3 Mini-grids and renewables-based power generation ..................................95 3.2.1.4 Smart grids – intelligent networks in tomorrow’s energy systems .......... 101 3.2.1.5 High-voltage DC transmission (HVDC) .......................................................104 3.2.2 Gas networks .................................................................................................109 3.2.3 Heating and cooling networks ......................................................................111 3.3 Energy storage ................................................................................................115 3.3.1 Mechanical storage.........................................................................................115 3.3.1.1 Pumped-storage hydroelectric plants .........................................................115 3.3.1.2 Gravity storage ............................................................................................ 120 2 3.3.1.3 Compressed air energy storage ....................................................................121 3.3.2 Thermal storage ............................................................................................. 124 3.3.3 Electrochemical energy storage ...................................................................129 3.3.3.1 Batteries for households and electric vehicles .......................................... 129 3.3.3.2 Batteries for system stability ......................................................................130 3.3.4 Chemical energy storage ...............................................................................138 3.3.4.1 Hydrogen and electrolysis ........................................................................... 138 3.3.4.2 Methanation ................................................................................................ 143 3.3.5 Underground gas storage ..............................................................................146 4 Project Setup and Implementation .....................................................150 4.1 Organising the transition towards renewable energy ....................................150 4.2 Engineering services ........................................................................................ 152 4.3 Analysis of potential renewable energy resources ........................................158 4.4 Energy demand and load analysis ................................................................... 162 4.5 Selecting routes for power transmission lines ...............................................165 4.6 Project management ........................................................................................169 4.7 Bankable feasibility study ............................................................................... 174 4.8 Energy use plan ................................................................................................ 175 4.9 Public acceptance management for international infrastructure projects ... 179 5 Economic Viability and Financing ......................................................185 5.1 Comparative costs of different renewable energy technologies ...................185 5.2 Project financing and related engineering services ......................................190 5.3 Funding possibilities for renewable energy projects .....................................198 5.4 Independent power producer arrangements ................................................. 200 5.5 Self-consumption and direct marketing of solar power in Germany ............202 6 Consulting Engineering Services – Remuneration ...............................207 7 Abbreviations ..................................................................................... 212 3 Authors Oliver Baudson, TSK Flagsol Francois Botreau, M. Eng., Lahmeyer International GmbH Dipl.-Ing. Arch. Bettina Dittemer, atelier4d Architekten Dr. Stefan Drenkard, Lahmeyer International GmbH Dipl.-Ing. (TU) Dr. h.c. Adolf Feizlmayr, ILF Beratende Ingenieure GmbH Dr. rer. nat. Ulrich R. Fischer, Brandenburgische Technische Universität Cottbus Wi.-Ing. Paul Freunscht, M.Sc., GOPA-International Energy Consultants GmbH Dipl.-Ing. Reinhard Fritzer, ILF Beratende Ingenieure GmbH Julia Hage, M.Sc., Fichtner GmbH & Co. KG Philipp A. Hiersemenzel, B.Sc. (Econ), Aggreko Microgrid & Storage Solutions, Lumenion Jerrit Hilgedieck, M.Sc., Technische Universität Hamburg (TUHH) Dipl.-Ing. Ingolf Hoffmann, Lahmeyer International GmbH Jürgen Hogrefe, hogrefe consult Prof. Martin Kaltschmitt, Technische Universität Hamburg (TUHH) Michel Kneller, M.Sc., ILF Beratende Ingenieure GmbH Dr.-Ing. Andreas Koch, European Institute for Energy Research (EIFER) Dipl. Wirtsch.-Ing. Jens Kottsieper, ILF Beratende Ingenieure GmbH Dipl.-Ing. Thomas Kraneis, Verband Beratender Ingenieure (VBI) Dr. Enrique Kremers, European Institute for Energy Research (EIFER) Dipl.-Ing. Fabian Kuhn, Fichtner GmbH & Co. KG Alex Loosen, M.Sc. (Renewable Energy), Lahmeyer International GmbH Annika Magdowski, M.Sc., Technische Universität Hamburg (TUHH) Dr. Atom Mirakyan, Lahmeyer International GmbH Dipl.-Ing. Hans Neumeister, ILF Beratende Ingenieure GmbH Dipl.-Ing. Henry Och, Dr. Born – Dr. Ermel GmbH – Ingenieure Dipl.-Ing. Heiko Peters, Dr. Born – Dr. Ermel GmbH – Ingenieure Dipl.-Ing. Christopher Vagn Philipsen, Drees & Sommer Prof. Dr. rer. nat. Dipl.-Geol. Ingo Sass, Technische Universität Darmstadt Dipl.-Geol. Steffen Schmitz, DBI Gas- und Umwelttechnik GmbH Dr.-Ing. Dirk Schramm, Ingenieurbüro für Energiewirtschaft 4 Dipl.-Ing.