On course for the energy turnaround: study on KfW's support for renewable energy in Germany in 2012

• Investment totalling EUR 10 billion in renewable energy thanks to KfW promotional loans
• 51% of all investment in expanding the use of renewable energy sources to generate power and heat supported by KfW
• Annual energy imports reduced by EUR 460 million
• 73,500 jobs secured for one year, the majority of which at SMEs

The findings of a study to evaluate the KfW Group's domestic programmes in the field of renewable energy for 2012 show that KfW's programmes made an important contribution to financing the gradual transition of Germany's power supply towards renewable energy sources, as decided by the German federal government.

"In 2012, EUR 10 billion was invested in facilities using renewable energy in Germany thanks to KfW promotional loans. That amount represents 51% of all investment carried out in Germany in 2012 for developing renewable energies to supply electricity and heat. This investment is an important factor in achieving the energy turnaround" said Dr Jörg Zeuner, Chief Economist of the KfW Group.

Just how important KfW's programmes to expand the use of renewable energy sources are is particularly apparent in the field of power. During the last three years (2010-2012), an average of 48% of all newly installed electrical output in Germany was supported by KfW. The share of onshore wind power facilities is particularly high at 82%.

Expanding the use of renewable energy sources reduces Germany's reliance on imports. Energy imports equivalent to EUR 460 million each year are avoided thanks to the facilities supported by KfW in 2012. Over the facilities' projected useful lives of 20 years, the savings in terms of energy imports add up to around EUR 9.1 billion.

By replacing fossil fuels, the renewable energy facilities supported by KfW in 2012 will reduce the volume of CO2 equivalents emitted each year by around 6.6 million tonnes (including 6.3 million tonnes of CO2). This is about 10% of the additional reduction in greenhouse gases aimed for by the German federal government between 2006 and 2020 in connection with expanding the use of renewable energy sources in the fields of power and heating.

If you include the reductions brought about by all of the facilities supported each year from 2007 to 2012, KfW's programmes up to now contributed to reducing emissions by a total of 29 million tonnes of CO2 equivalents per year, or about 45% of the reductions aimed for by the German government. By reducing emissions of greenhouse gases and airborne pollutants, the renewable energy facilities supported in 2012 will prevent global damages of more than EUR 630 million a year over their useful lives, mainly in connection with climate change.

The production and construction of the facilities supported in 2012 safeguarded or created about 73,500 jobs in Germany. Operating and maintaining these facilities will provide employment for about another 2900 people each year for 20 years. Almost 75% of the jobs created by the construction and operation of facilities produced in 2012 are at small and medium-sized enterprises with fewer than 500 employees, and around 32% in small companies with fewer than 50 employees.

The study "Evaluation of KfW's Domestic Programmes to Promote the Use of Renewable Energy Sources in 2012", conducted by the Center for Solar Energy and Hydrogen Research (ZSW) in Stuttgart, can be found by following this link: www.kfw.de/research