Press Release from 2016-01-06 / Group, Domestic Promotion
KfW’s domestic programmes to promote the use of renewable energies in Germany during 2013 and 2014
KfW is a key partner in financing the energy transition
- KfW provides support for 44% of the newly installed electrical capacity from renewable energies in Germany
- Greenhouse gas emissions in Germany decline annually by around 9.5 million tonnes
- Annually avoided energy imports total EUR 520 million
KfW is making a significant contribution to the energy transition, having provided funding for 44% of electrical capacity newly installed in Germany during 2013 and 2014 from renewable sources of energy (excluding offshore wind energy). These are the results of an evaluation of KfW’s domestic programmes to promote the use of renewable energies for the years 2013 and 2014.
“KfW is doing far more than simply speed up the development of energy efficiency in buildings and production processes. KfW’s programmes to promote the use of renewable energies are also providing significant support for the planned transition of Germany's power supply towards renewable energy sources. This is bringing about a considerable reduction in Germany’s total energy imports and safeguarding thousands of jobs, particularly within the SME segment,” explained Dr Jörg Zeuner, KfW Group’s Chief Economist.
“Even more important is the fact that the support provided by KfW is helping to reduce greenhouse gas emissions in Germany and slowing down the rising of costs related to climate change and climate adaptation. And doing so is very much in Germany’s interest,” continued Dr Zeuner. The renewable energy facilities supported by KfW in 2013 and 2014 cut annual greenhouse gas emissions in Germany by a total of roughly 9.5 million tonnes of annual CO2 equivalents. “If we are to achieve our energy and climate policy objectives in Germany, we must consistently continue to develop renewable energies. Particularly in the heating sector, it is even necessary to further pick up the pace,” Dr Zeuner urged.
This is helping slow down the rise in the costs of climate change. Based on a standard cost approach, the study estimates that the renewable energy plants supported in 2013 and 2014 will prevent global losses of around EUR 950 million per year over their useful lives. Some 85% of the costs avoided relate to the climate change losses prevented, 13% to the detrimental health issues prevented.
Further key results of the study include:
- Total investments of EUR 14.4 billion leveraged in power and heat generation. At around 70%, most of the co-financed investments were in electricity generation facilities using onshore wind energy, followed by photovoltaics at 15%.
- The production and construction of the facilities safeguarded or created a total of around 100,000 jobs in Germany for one year. Operating and maintaining these facilities will provide employment for about another 3,500 people each year for 20 years. Around 74% of the jobs created are in small and medium-sized enterprises with fewer than 500 employees.
- The facilities supported by KfW will help reduce Germany’s annual energy imports by roughly EUR 520 million. Over the facilities’ projected useful lives of 20 years, the savings in terms of energy imports add up to around EUR 10.4 billion.
The “Evaluation of KfW’s Domestic Programmes to Promote the Use of Renewable Energies in 2013 and 2014” study, conducted by the Centre for Solar Energy and Hydrogen Research (ZSW) in Stuttgart, is available for download (in German language) at: www.kfw.de/research.