Leader in Clean Technology
Germany is Europe’s leading market for green building technologies. The government is actively promoting the swift development and integration of renewable and efficient heating and cooling technologies through new laws and attractive incentives. This promotion has led to a significant market shift in Germany which has seen the heating and cooling industry grow partly as a result. The number of renewable efficient technologies – such as CHP, heat pumps, solar thermal, condensing heating boilers and pellet heating systems –has increased enormously.
The German government intends to reduce CO2 emissions by 270 million metric tons by 2020, and further promote the consumption of energy produced from renewable sources. Buildings account for over 40 percent of German energy consumption; 85 percent of which is used for heating purposes. In private households this figure is as high as 86 percent of total energy consumption. Of the 17 million heating generators in Germany, only 12 percent could be considered state-of-the-art: 70 percent are between 10 and 24 years old, and 18 percent are older still. As such, significant market and, accordingly, investment potential can be expected in the decades to come. Around 50 percent of total building stock will be retrofitted within the next 20 years (2.5 percent annually which is equivalent to 950,000 buildings from a total stock of 38 million buildings).
There is an obligation to integrate efficient heating technologies in order to decrease primary energy consumption per m² for new buildings. Potential savings are up to 93 percent of primary energy consumption of apartment houses in Germany. Demand for air conditioning is increasing due to lifestyle and climate change and adaption to modern standards. Air-conditioning and refrigeration engineering technologies use around 15 percent of the total electric energy produced in Germany.
The saving potentials, however, are as high as 60 percent, with an average saving of 35 percent. Accordingly, technology developments facilitating increased energy efficiency are becoming ever more important and will continue to be in the long term.
Buildings account for over 40 percent of German energy consumption, 85 percent of which is used for heating purposes. In private households this figures is as high as 86 percent of the total energy consumption. There is an obligation to integrate efficient heating technologies in order to decrease primary energy consumption.
In 2008, 45 percent of all newly installed heating systems in Germany were linked to renewable energy sources. This is equivalent to a 13 percent growth level in less than two years.
Heat Pumps
Heat pumps are providing an attractive alternative to oil central heating systems.
Germany is the second largest producer of heat pumps in the European Union (EU). More than 80,000 heat pumps are produced annually in Germany. More than 62,000 heat pumps were sold in 2008, contributing to a total of 350,000 heat pumps installed in Germany by the end of 2008. The market for air/water heat pumps in particular has experienced rapid growth. The German heat pump market is expected to reach 121,300 installations by 2015, with revenues expected to rise to US$ 1.43 billion –equivalent to a growth rate of 12.2percent.
Pellet Heating
The rising prices of fossil fuels and widespread public support for the acquisition of environmentally friendly small combustion boilers have contributed to a major increase in the number of highly efficient and low-emission wood heating systems in use. Different governmental incentive programs for pellet heating systems and pellet stoves are available subject to technology implemented.
With annual consumption of 151 terawatt hours (TWh) in 2007, Germany is the largest consumer of bio energies within the EU. Around 25 million m² of wood in the form of logs, wood chips, pellets, and briquettes are used for heating every year – providing heat to almost one in five German households. The total stock of wood heating in households stands at over nine million units with the trend increasing.
Currently the majority of these units are individual fireplaces (e.g., fireplaces and stoves), but larger systems are on the increase: almost a fifth of households heating with wood are already using a central heating system (e.g., gasification boilers, pellet heating, wood-chip heating), which also serves domestic water heating purposes.
In 2007, eighty-five percent of pellet heating systems were installed in the form of central heating systems. Approx. half of the plants installed in 2007 were used in combination with a solar-thermal installation.
Germany owns 3,381 million m3 of wood stock - the largest stock in Europe. Around one million pellet heating systems could be fueled at current average wood harvest levels.
Micro Combined Heat and Power (CHP)
Micro-CHPs are an ideal replacement for the mature condensing boiler market, with Germany providing an excellent export platform in the fast-growing European market. Internal combustion engine-based systems dominate the micro-CHP industry. New technolo
gies including external combustion engines and fuel cells are starting to establish themselves in this emerging market. Germany is the leader in the European micro-CHP market: around 90 percent of 2008 European sales were generated in Germany. Fifty percent of the internationally leading technology developers in Europe are based in Germany.
Solar Thermal
Germany is home to Europe’s largest and most dynamic solar thermal market. More than 40 percent of installed solar thermal system capacity in Europe is located in Germany. This is largely attributable to strong governmental support and favorable end-user acceptance of the industry. European turnover in 2008 was EUR 1.4 billion. This is expected to reach EUR 2.2 billion by 2014.
The German solar thermal market is a fast-growing market: it increased by 60 percent for the period 2007 to 2008 alone. Some 210,000 solar collectors were installed in 2008. In 2010 there are 1.35 million plants - with a surface area of 12.9 million m² of flat plate plus tube collectors on household roofs – which provide domestic hot water and space heating via solar energy. The German solar thermal market is divided between collector producers and importers, and system service providers. Sixty-six percent of German collector demand is met domestically – the remaining 33 percent imported.
Close research and development cooperation with some of Germany’s most prestigious research institutes (e.g. ISFH, Fraunhofer ISE, ITW Stuttgart) ensures advances in production technologies and processes in order to facilitate further cost reductions.
Sources: German Trade and Invest gtai, German Ministry of Economic and Technology
