The role of institutional structure for disseminating EE and RES: a comparative analysis between Brazil and Germany

1. The role of institutional structure
for disseminating EE and RES: a
comparative analysis between
Brazil and Germany
Dr. Conrado A. Melo
15/10/2013

2. Presentation content
Introduction
2. Energy contexts
3. RES/EE governance
1.
1.
2.
3.
4.
Legal framework
Policy instruments
Strategies and action plans
Institutions
Interviews
5. Conclusions
4.

3. Background
Criticism to the Brazilian EE/RES governance
◦ Weak institutional support and capacity to
manage EE and NC RES activities
Empirical studies have shown that there is a high
correlation between institutional quality and
environmental quality
◦ spillover effects of institutions are determinants
for a more sustainable development

4. Why to study the German case?
RES: 12% (32 GW) of global wind energy
installed capacity and 26% (33GW) of global PV
installed capacity
EE: one of the most energy efficient
industrialized countries
Strong institutional structure devoted to the
development of EE and RES activities

5. Objective
Evaluate the German institutional
structure related to the promotion of EE
and RES with focus on the identification
of necessary elements for improving the
EE and RES governance in Brazil

6. Presentation content
Introduction
2. Energy contexts
3. RES/EE governance
1.
1.
2.
3.
4.
Legal framework
Policy instruments
Strategies and action plans
Institutions
Interviews
5. Conclusions
4.

7. Energy indicators...
indicators...
Figure 1 - Brazil and
Germany: annual historical
series (1971-2010) of
population and primary
energy per capita
Source: own elaboration based
on IEA, 2012
Figure 2 - Brazil and Germany:
annual historical series (19712010) of primary energy
supply and energy intensity
Source: own elaboration based on
IEA, 2012

8. Table 1 - Energy reserves and consumption Brazil and Germany: 2002 x 2012

9. Carbon dioxide emissions

10. Electricity production and
consumption by sector
Figure 3 - Source of power electricity supply in the year 2011
Figure 4 - Brazil and Germany: % sectorial energy consumption in the year 2012

11. Global horizontal solar radiation
Brazil
Area 8.514.877 km²
(23 times larger)
1640 – 2380 (KWh/m2/year)
Germany
Area 357.021 km²
1100 -1350(KWh/m2/year)

12. Presentation content
Introduction
Energy contexts
RES/EE governance
1.
2.
3.
1.
2.
3.
4.
4.
5.
6.
Legal framework
Policy instruments
Strategies and action plans
Institutions
Interviews
Conclusions
Recommendations

13. Germany:
Germany: Legal frameworks - RES
1991 - Electricity Feed-in Act (StrEG)
2000 - Renewbles energy source Act (EEG) Revisions (2004, 2009 and 2012)
2008 - Act on the Promotion of Combined Heat
& Power
2009 - Act on the Promotion of RES in the
Heating Sector
2011 - Grid Expansion Acceleration Act for
Transmission Networks (NABEG)

14. Brazil:
Brazil: Legal frameworks - RES
2002: Law 10.438 -PROINFA (Program for
Alternative Electric Generation Sources (wind,
small-scale hydro (PCHs) and biomass energy)
2007: Law 11.488 – discount in transmissions and
distribution tariffs for solar, wind, biomass and
cogeneration (heat and power)
2012: Normative resolution 482/ANEEL
Establishes the conditions for access to
distribution systems by distributed
microgeneration and minigeneration and the
compensation rules (it is a kind of net metering
model)

15. Germany:
Germany: Legal frameworks - EE
1976: Energy Saving Act (EnEG) –
Followed by many ordinances, examples:
◦ 1981: Heating Costs Ordinance
(Amendments: 1984, 1989 and 2008)
◦ 2002: Energy Saving Ordinance (Revisions
2007 and 2009)
2010 - Law on energy services and other
energy efficiency measures (EDL-G)

16. Brazil:
Brazil: Legal frameworks - EE
2000: Law 9,991 - Established that the
electricity utilities must apply a minimum
percentage of revenues in R&D and
energy efficiency
2001: Law 10,295 - Energy Efficiency Act
Mandatory Standards for Appliances

17. Presentation content
Introduction
2. Energy contexts
3. RES/EE governance
1.
1.
2.
3.
4.
Legal framework
Policy instruments
Strategies and action plans
Institutions
Interviews
5. Conclusions
4.

18. Policy instruments
Brazil
Germany

19. Policy instruments
Brazil
Germany

20. Policy instruments
Brazil
Germany

21. Presentation content
Introduction
2. Energy contexts
3. RES/EE governance
1.
1.
2.
3.
4.
Legal framework
Policy instruments
Strategies and action plans
Institutions
Interviews
5. Conclusions
4.

22. Germany: strategies and action plans
2007 and 2011: National Energy Efficiency
Action Plan (NEEAP)
2009: National Biomass Action Plan
2010: National Action Plan for Renewable
Energy
2010: Energy Concept 2050
2011: Adaptation Action Plan of the German
Strategy for Adaptation to Climate Change

23. Germany: targets
Ambitious targets: RES, EE, transportation sector
and GHG emissions reduction
Table 3 - Targets according to the German Energy Concept
Year
Renewable Energies
Target
Share
electricity
Share
total
2020
35%
18%
2030
50%
Energy efficiency Target
Primary
energy
(versus
2008)
-20%
Electricity
consumption
(versus 2008)
30%
2040
65%
45%
2050
80%
60%
-50%
Source: OECD, 2012 based on BMU, 2011
Energy
productivity
-10%
Increase by
2.1% per year
-25%
Transportation
sector
Energy
consumption
reduction
Climate
target
10%
6 million electric
vehicles
-40%
40%
GHG
(versus
1990)
-55%
-70%
-80-95%

24. NEEAP 2011: Summary
Provide a statutory basis for
strategy development
Provide for results
monitoring, updating and
revisions
Identify actions and
assign responsibility

25. Brazil: strategies and action plans
2008: National Climate Change Plan (PNMC)
2011: National Energy Efficiency Plan (PNEE)
2012: National Transportation and Logistics
Plan (PNLT)
2012: Decennial Energy Expansion Plan 2021

26. Brazil: Plans shortcomings
Identify actions and assign responsibility
Link EE/RES strategies to the broader
policy context
Reinforce strategy through action and
economic planning
Establish accountability and evaluation

27. Presentation content
Introduction
2. Energy contexts
3. RES/EE governance
1.
1.
2.
3.
4.
Legal framework
Policy instruments
Strategies and action plans
Institutions
Interviews
5. Conclusions
4.

28. Germany:
Germany: RES/EE
Institutions
National level
• One directorate specific to deal with
“Energiewende”
• Policy implementation monitoring
• EE
• Energy technologies

29. dena – German Energy Agency
dena’s aims
◦ Improvement in the rational use of energy
◦ Development of renewable energy sources
◦ Increase in innovative technologies for the
rational conversion of energy
◦ Creation EE/RES markets
◦ Optimization of energy systems
dena’s customers
◦ Specialists (e.g. commerce, industry and trade)
◦ Politicians
◦ The end consumer

30. dena – German Energy Agency

31. Germany:
Germany: Energy and Climate Protection
Agencies
Regional level
Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Energy agency
Baltic Energy Forum eV
Energieagentur Regio Freiburg GmbH
Energieagentur Oberfranken
Energieagentur im Landkreis Kassel
hessenENERGIE - Gesellschaft für rationelle Energienutzung mbH
Klimaschutz- und Energieagentur Baden-Württemberg GmbH
Klimaschutz- und Energie-Beratungsagentur Heidelberg-Nachbargemeinden gGmbH
ZukunftsAgentur Brandenburg GmbH
Berliner Energieagentur GmbH
EnergieAgentur Nordrhein-Westfalen
Klimaschutzagentur Wiesbaden e.V.
Windenergie-Agentur Bremerhaven/Bremen e.V.
Energie- & Umweltzentrum Allgäu
Klimaschutz- und Energieagentur Mittelhessen
Klimaschutzagentur Region Hannover gGmbH
Energieagentur Sachsen-Anhalt GmbH
17
Transferstelle für Rationelle und Regenerative Energienutzung Bingen
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Thüringer EnergieAgentur e.V.
Energieagentur Unterfranken e.V.
Sächsische Energieagentur GmbH
Ortenauer Energieagentur GmbH
Regionale Energieagentur Ulm gGmbH
REAR - Energieagentur Regensburg
Bremer Energie-Konsens GmbH
EnergieEffizienzAgentur Rhein-Neckar gGmbH
Energieagentur Rheinland-Pfalz GmbH
Energieagentur Bergstraße
Kompetenzzentrum Erneuerbare Energien Rheingau-Taunus e. V.
Energieagentur Hohenlohekreis GmbH
Gemeinschaft der Energieberater im Landkreis Calw e.V.
Energieagentur Kreis Konstanz GmbH
Energieagentur in Horb
Energieagentur Schwarzwald-Hochrhein
Energieagentur Mittelbaden gGmbH
Local level
Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Energy agency
Energieagentur Zollernalb gGmbH
Energieagentur Ravensburg gGmbH
Umwelt- und Energieagentur Kreis Karlsruhe
Energieagentur Main-Tauber-Kreis GmbH
Energieagentur des Neckar-Odenwald-Kreises GmbH
Energieagentur Landkreis Tuttlingen gGmbH
Leipzig Energy Agency - Stadtwerke Leipzig GmbH
Stadtwerke Greifswald GmbH
Energie-Beratungs-Zentrum Stuttgart e.V.
Energiemanagement-Agentur Elbtalaue-Prignitz-Wendland
Klimaschutzagentur Mannheim gGmbH
Energieagentur Kreis Böblingen gGmbH
Energieagentur Rems-Murr gGmbH
Ludwigsburger Energieagentur e.V.
Agentur für Klimaschutz Kreis Tübingen gGmbH
Energieagentur Sigmaringen – Niederlassung der EA Ravensburg gGmbH
Energieagentur Landkreis Esslingen gGmbH
KlimaschutzAgentur Reutlingen gGmbH
Energieagentur Landkreis Göppingen gGmbH
Energiekompetenz Ostalb e.V.
Energieagentur Landkreis Schwäbisch Hall
Energie- und Bauberatungszentrum Pforzheim / Enzkreis gemeinnützige GmbH
Karlsruher Energie- und Klimaschutzagentur gGmbH
Energieagentur Schwarzwald-Baar-Kreis GbR – Niederlassung der EA Tuttlingen
Energieagentur Landkreis Rottweil GbR
Energieagentur Bodenseekreis - Niederlassung der EA Ravensburg gGmbH
Energieagentur Biberach - Niederlassung der EA Ravensburg gGmbH
Energieagentur Region Trier
Energiereferat Stadt Frankfurt am Main
Stadtwerke Unna GmbH
Agentur für Klimaschutz Kreis Tübingen gemeinnützige GmbH
Beratungs- und Service-Gesellschaft Umwelt mbH
Forseo GmbH
Stadtwerke Leipzig GmbH
Bonner Energie Agentur e.V.

32. Germany:
Germany: EAs types and activities
Information oriented agencies(IEAs)
◦ Information and motivation services for municipalities,
governments and enterprises on EE/RES
◦ Public awareness and image campaigns
◦ Initial and branch consultations by way of rough and
detailed analyses,
◦ Networking and support for promoting energy
technologies and promotion of innovative
technologies
◦ Conception and processing of subsidy and support
programmes
◦ Consulting and support for regional or federal energy
governments,
◦ Evaluation of energy policy measures

33. Germany:
Germany: EAs types and activities
Entrepreneurial oriented agencies (EEAs)
◦ sell consulting services
◦ ESCO activities, including development,
planning, realization, financing and operation
of decentralized heating and power units for
building supply
◦ development of energy service products

34. Germany:
Germany: other related institutions
Additionally, Germany has:
- about 500 ESCOs
- more than 800 energy retail companies (multinational
and their subsidiaries, regional and cooperative energy
companies) that offer different kinds EE services
- about 3,200 energy consultant offices organized in
associations
- several manufacturers of EE and RES technologies
- close to 1,000,000 installers of different crafts offering
different kinds of EE and RES services
- architects and planners who deliver partial services
connected to EE and RES
(Wuppertal Institute, 2006)

35. Brazil:
Brazil: Institutions
•Strong influence of energy companies in the process of decision
making
• EE programs performed by energy companies that not
necessarily have interest in EE
• Positive appraisals of many projects evaporate after completion
due the lack of continuity and changes in energy policies
• Lack institutional capacity to deal with EE and NC RES issues

36. Presentation content
Introduction
2. Energy contexts
3. RES/EE governance
1.
1.
2.
3.
4.
Legal framework
Policy instruments
Strategies and action plans
Institutions
Interviews
5. Conclusions
4.

37. Interviews
Energy Distribution Utilitiy - AVU network GMbH
◦ Thorsten Coß, CEO
Energy Agency - EnergieAgentur - NRW
◦ Ignacio Bedoya, Energy Engineers GmbH
University
◦ Prof. Dr.-Ing. H.-J. Wagner - Energy Systems and Energy Industry
Ruhr Bochum University
◦ Prof. Dr.-Ing. Sourkounis Constantinos - Power Systems
Technology And Power Mechatronics - Ruhr Bochum University
Regulatory Agency - Federal Network Agency (BNetzA)
◦ Dr. Annegret Groebel - Head of Department International
Relations / Postal Regulation
◦ Daniel Muether - International Coordination Energy Regulation

38. Interviews: highlights
Reasons for German EE/RES success:
◦ “Feed-in tariff”
◦ “Local banks - focus on promoting local business
including EE and RES projects”
◦ “High investments in R,D&I – public research
money and the creation of energy institutes”
◦ Utilities - “legal requirement topromote EE/RES”
◦ “the profit of energy sales gets smaller and it
induces the development of new business models energy consultancy, contracting etc– utilities are
acting as ESCOs”

39. Interviews: highlights
EE -challenges
◦ Industry - “forget energy, lets save materials - other
investments are more attractive than EE due the
low electricity costs”
◦ Buildings - “cost to retrofit old buildings is too high
with the payback is around 20 years” - “energy
and gas are too cheap”
◦ Human behavior “German people prefer to invest
in a new big car than in insulation, house retrofits,
etc.”

40. Interviews: highlights
Photovoltaic energy challenges
◦ “small is beautiful, sometimes big is better” – large solar
power plants produce cheaper electricity than solar panels
in roofs
◦ “PV still a expensive source of energy” – “most part of
charges in tariffs to support RES is driven to PV” – “poor
people can’t afford these tariff increases”
◦ “energy storage is too expensive”
Wind energy challenges
◦ Cheaper production of equipments, reduce costs of
maintenance, improve the quality of components
◦ Large-scale grid reinforcement and expansion necessary to
transport electricity to load centers in the South
◦ “not in my backyard” and “environmental issues, etc.”

41. Interviews: highlights
Institutions
◦ How is the interplay between EAs and utilities/industries?
“Wonderful – they are supported by government, then they
provide low cost consulting services, technical solutions and
indicates the better way to get subsidies and money for
investments”
◦ Bring people together (industry, energy experts and researchers)
◦ “Advantages: Neutrality, independence from market influences,
no need to generate own income.
◦ “Disadvantages: Dependence on political decision. Government
changes every 5 years and order of the priorities can also
change.”
◦ “The aim is to accelerate the innovation processes and optimize
the introduction of innovative products and services into the
market.”

42. Presentation content
Introduction
2. Energy contexts
3. RES/EE governance
1.
1.
2.
3.
4.
Legal framework
Policy instruments
Strategies and action plans
Institutions
Interviews
5. Conclusions
4.

43. Conclusions: Germany
Decentralization of energy production with
application of RES is one of keys elements of the
German “Energiewende”.
A combination of a strong legal framework, funding
mechanisms and other policy instruments, which
have included the people in the “energy game”, has
shown a successful strategy for the development of
RES markets and for the creation of “green jobs”
However, the “power from the people” means new
challenges: mainly issues related to the design of a
new market model for a highly distributed power
generation and capacity markets

44. Conclusions: Germany
Germany has a dynamic system of governance
and seems to be prepared to answer and give
solutions for the new environmental, economic
and energy issues.
Devoted EE/RES institutions have certainly had
a fundamental role in the German success:
◦ They increase the awareness of the potential benefits
of EE and RES solutions
◦ They accelerate the diffusion of EE/RES solutions and
the creation of new markets
◦ They have contributed to the development of
German policies and its evaluation,

45. Conclusions: Brazil
Brazil has a passive policy related to development of
NC RES. In the case of wind energy, due the reduction
of the technology prices, the market is increasing,
despite the lack of planning. For instance, at this
moment Brazil has 19 wind power plants not operating
due the lack of grid
In the case of photovoltaic energy, due the natural
advantage of solar radiation the country certainly will
see an increase of PV power generation. However,
probably it will happen just in the case of large power
PV plants. The absence of additional support (funding,
information, training, consulting services) make it
difficult for the development of the “power from the
people in Brazil”

46. Conclusions: Brazil
Brazil certainly need to improve its capacity of
governance related to EE and NC RES. Its old
governance structure has not been enough to learn, to
adapt and to provide solutions for capturing benefits
related to EE and NC RES developments.
Additionally, Brazil need to create more Know how
around these new energy markets and increase the
transparence in the process of taking decisions.

47. Conclusions: Brazil
An devoted institution, for instance, an
EE/RES Energy Agency in Brazil would be
fundamental for:
◦ Create a database about Brazilian
stakeholders and EE and RES projects and
other information.
◦ Bring people together (researches, industry,
ESCOs, customers, utilities) and accelerate
the dissemination of EE and NC RES
◦ Support the design, the implementation and
evaluation EE and NC RES policy instruments

48. Conclusions: Brazil
◦ Increase the awareness about distributed
solar photovoltaic energy, once the country
has adopted just a kind of compensation
system without any other mechanism to
support a more distributed energy supply
◦ Manage government programs such as
PROCEL and CONPET
◦ Provide information, education and training
about EE and RES solutions for Industry,
buildings, etc..

49. Acknowledgments
Thank you for
your
First I would like to thank professor
Pieolow and mention that was a very
intersting
attention….