Political framework
At the end of August 2007, the Federal Government set out the key points for an integrated energy and climate programme with which it intends to meet its challenging climate protection targets for the year 2020. Furthermore, it is planned to increase the share of renewable energies and to improve energy efficiency levels.
From the perspective of the MVV Energie Group, the package of measures includes positive approaches towards sustainable decentralised energy supply forms and increased use of contracting measures. The foundations of this package were laid at three top-level energy summits, in which the then Supervisory Board Chairman of MVV Energie AG, Gerhard Widder, also took part.
To implement the key points adopted, the ministries involved published initial draft amendments to the Cogeneration Act (KWKG) and the Renewable Energies Act (EEG) in October 2007. We welcome the fact that the Federal Government intends to maintain its promotion of cogeneration plants and to provide investment grants for the expansion of district heating grids in future. This will provide added momentum to cogeneration, an efficient technology which saves primary energy resources.
The German Federal Parliament adopted the 2012 Allocation Act (ZuG 2012) on 22 June 2007, thereby substantially raising the CO2 reduction targets for the German energy industry for the second phase of EU-wide emissions trading. Overall, the maximum permitted limit for CO2 emissions in Germany was restricted to
456.1 million tonnes per year. Of the CO2 certificates available, 40 million will be sold by the state. It is positive to note that account has been taken of the role played by cogeneration plants in protecting the climate. However, the level of allocations remains uncertain, given that the allocation notices from the authorities are only expected in spring 2008. Not only that, the terms and conditions for emissions trading in the period after 2012 are as yet absolutely unclear. This presents the German energy sector with considerable planning insecurity and risks.
The EU Commission aims to strengthen competition in the European energy market and presented proposals with this in mind on 19 September 2007 (3rd EU Single Market Package). The Commission calls for consistent unbundling on the level of transmissions grids. Over and above this, the EU Commission package includes numerous measures to promote competition, some of which involve strengthening the cross-border exchange of electricity.
The MVV Energie Group endorses the analysis by the EU Commission and sees most of the proposals as being suited to achieving the shared goal of greater competition. As regional grid operators, the companies of the
MVV Energie Group would not be directly affected by ownership unbundling.
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