Tapping sun and wind’s energy is only natural

In light of recent court findings against the nuclear new build process, Thorsten Herdan reiterates the case for renewable energy

WHEN experts are asked what they see as the most astonishing fact about the German energy transition, a variety of answers can be heard:

Renewables are important economically, employing around 330 000 people in 2015;

Today, with about 32% of electricity based on renewables, which mostly fluctuate, our grids are more stable than ever; and

Despite being a northern European country not famous for its sunny weather, Germany’s photovoltaic power plants can generate electricity for 6.5 eurocents (about 97c) per kilowatt-hour.

These numbers show how profoundly our energy systems have changed and provide an outlook on what is still to come in the near future.

Energy systems centred on renewable energy and energy efficiency have started to provide the most economic way to generate and use electricity, heat and mobility. They will also serve as basis for achieving the climate goals that the world agreed on.

And, to complement the energy policy triad, a high share of renewable energy is contributing to supply security, as it increases independence from energy imports and fluctuating global commodity prices.

In Germany, we are very glad to have found an ally in South Africa that is willing and able to jointly pave the way forward.

Within the space of just a few years, the renewable energy independent power producer procurement programme has managed to add over 3 gigawatts of renewable capacity, at highly competitive prices.

The programme has triggered almost R200-billion worth of investments and made many international companies choose South Africa as the location for regional branches and strategic investments.

Now, as South Africa is approaching the next level of its energy transition, it becomes increasingly important to follow through, to not lose pace, and to adopt a systemic approach.

In order to best harvest the potential for cheap wind and solar energy, these energies must be integrated well into the energy system and the right partners selected.

A reliable regulatory framework is also needed to reaffirm the trust of the private sector in the renewable energy market.

In Germany, we are aiming to reduce our greenhouse gas emissions by 80% to 95% by 2050, while raising the share of renewable energy in total electricity consumption to 80%.

We have therefore had to find answers to the questions of which technologies and system design best fit our growing share of renewables.

There is no single magic solution on how to implement an energy transition in all countries.

But when looking upon the stunning cost reduction of photovoltaic and wind energy technologies in the past decade, it is easy to see that their role as cheap and reliable electricity producers will increase.

Fluctuating renewable energy needs to be balanced by flexibility. During the hours when wind and sun are not fully available, demand has to be adapted or other electricity generators need to quickly come online or increase their production.

In our experience, natural gas proves to be an ideal partner for renewables as gas-fired power plants are highly flexible.

Nuclear power plants, on the other hand — aside from all the unsolved problems concerning safe operation, expensive dismantling and the longtime storage of nuclear waste — have not been designed for flexible and load-following operation at all.

Where gas-fired power plants account for a smaller share of the conventional fleet, many other proven options exist, such as increasing the flexibility of existing coal-fired power plants, grid expansion, connecting up with neighbouring countries or using storage systems that fill up once surplus electricity is available and feed it back when needed.

For South Africa, with its large resources of platinum group metals, hydrogen value chains for mobility and electricity could be of particular interest.

In addition, demand-side management — that is shifting demand to low-peak hours — can be a fitting and inexpensive solution.

Of course, each country has to decide how to combine these measures, taking local conditions into account.

Renewable energies are already able to compete with conventional thermal power plants, especially under South African climate conditions.

Very soon, renewables will surpass grid parity in other parts of the world and become the cheapest option for generating electricity.

A variety of proven flexibility options exist to balance the fact that generation is intermittent.

These developments will inevitably lead to new innovative business models that will enable customers and independent power producers to profit from this energy transition in the most economic way.

Herdan is director-general for energy policy at the German ministry for economic affairs and energy and is responsible for the South AfricanGerman energy partnership established in 2013

Very soon, renewables will be the cheapest option for generating power