Germany has a low degree of energy independence (44 percent). Commercial sales of fuel-wood currently represent 0.3-0.4 percent of energy consumption. Potentially fuel-wood could cover two percent to four percent of energy consumption. It is estimated that biomass could displace eight percent of fossil fuels, yielding a two percent reduction in total CO2 emissions. Priorities for biomass use are residues, straw and Short Rotation Coppice.A. INSTITUTIONAL ASPECTS
Germany is a Federal country and policy decisions are made at federal and regional levels. This results in the complex situation that Regional authorities of three different levels have their own regional policy.
A.1. - POLICIES, STRATEGIES AND PROJECTS
At federal level, some policy measures favouring the development of biomass, such as the Government decision to reduce CO2 emissions by 25 percent to 30 percent from 1987 levels by 2005 have been taken. This may be done through improving energy efficiency and developing of RE. Also, at the federal level, there is a main regulation for feeding electricity into the national grid. Furthermore there are many R&D programmes and stimulation for investments.
At the regional level, most of the "Länder" have incentives for RE. There are regional policies and targets; for example Bavaria aims to supply five percent of their energy requirements from biomass.
A.2. - THE ROLE OF TECHNICAL AGENCIES
Overall national policy for renewables is the responsibility of the Ministries for Environment and Agriculture.
The Ministry of Agriculture has promoted non-food uses of agricultural output since 1983, but a major change in the agricultural policy occurred ten years later when responsibility for renewable raw materials was transferred from the Federal Science and Technology Ministry (BMFT) to the Federal Agricultural Ministry (BML).
By this decision the federal chancellor aimed to better meet farmers' actual needs. Alongside the Agricultural Ministry certain Länders have taken significant initiatives with respect to biomass, particularly Bavaria, Baden Württemberg and Lower Saxony.
· The Technical Agency for Renewable Raw Materials - FNR (Fachagentur Nachwachsende Rohstoffe) is in charge of R&D activities, pilot projects and technological assessment related to RE. It is responsible for drawing up research programmes, organising calls for proposals, selecting projects, monitoring their technical advancement, and evaluating their results. The agency is made up of 55 members representing federal ministries, the Agricultural Ministries of the 16 Länders and 35 not-profit groups.
· The Centre of Agricultural Engineering of the Technical University of Munich is concerned with heat production from biomass and with environmental questions related to the development of energy crops.
· The CENET - Centre for New Technologies is a consultancy centre which carries out technical studies relating to RE.
· CARMEN is a network of experts co-ordinating the development and promotion of RE supplies, active in the Bavarian region. The wood-fuel field accounts for 30 percent of its activity. CARMEN pursues a strategy of co-ordinated communication to persuade individuals, townships, and industrialists to invest in RE. Farmers are the most enthusiastic supporters of the project. Its objectives are:
- To mobilise researchers and politicians
- To organise the chain of production
- To propose regulations
- To take action in order to create favourable conditions for development of biomass.
_ FINANCIAL REGULATIONS:
FINANCIAL INCENTIVES FOR THE PRODUCTION OF ENERGY CROPS:
The "set-aside" policy exists (averages to 370 EURO/ha). Subsidies for capital investments are given by BML ( the Federal Agricultural Ministry). Cheap loans are available for RE projects from the Deutsche Ausgleich Bank.
FINANCIAL INCENTIVES FOR THE CONVERSION OF ENERGY CROPS:
In 1994 the Federal Government Programme of approximately extended 7MEURO in 1998 with a total funds of 70 MEURO. Part of this programme is providing direct investment grants for the installation of biomass facilities.
FINANCIAL INCENTIVES FOR THE UTILISATION OF ENERGY FROM ENERGY CROPS:
Grants of 137EURO per kWh are available. An important instrument exists in regard to biomass utilisation that requires electricity companies to buy electricity from biomass at a price of 80 percent of the final user price.
CO, NOX and particulate emission standards of biofuels are fixed according to the plant sizes.
In addition to this, it is established that plant of 0.5-5.0MW requires annual monitoring and plant >25MW requires continuous particulate and CO monitoring.
Density, Moisture content, Ash and CV standards exist also for wood briquettes; every category varies for length and width.
The development of RE is seen in Germany as the way to reduce CO2 emissions. Some steps have been taken to stimulate this development. As regard biomass, the Agricultural Ministry supports non-food uses of agricultural products, placing more hope in the emergence of "green" product than in the development of biofuels.
It is primarily Regional Governments that show an interest in biomass, which creates local economic activity, but regions face resistance from powerful electric utility. The prime objectives are the development of market outlets, improve competitiveness of the chain of production and use of available farmlands in an environmentally friendly manner.