DGAP-News: 2G Energy AG: Coalition agreement confirms CHPs' energy supply position
(firmenpresse) - DGAP-News: 2G Energy AG / Key word(s): Market Report/Market Report
2G Energy AG: Coalition agreement confirms CHPs' energy supply
position
28.11.2013 / 15:20
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Corporate News
2G Energy AG: Coalition agreement confirms CHPs' energy supply position
- New regulation on EEG levy offers opportunities for CHP
- Statutory protection for existing EEG feed-in compensation and existing
own electricity generation
- Initial draft reform EEG legislation by as early as Easter 2014
- Storage research subsidies as with power-to-gas
- Feed-in precedence for renewable energies to be retained
Heek, November 28, 2013 - The significance of combined heat and power (CHP)
is set to grow as part of the energy policy transition in Germany. 2G
Energy AG (ISIN DE000A0HL8N9), one of the leading German manufacturers of
combined heat and power plants, is assuming on the basis of information
available today that the regulatory conditions and market opportunities for
CHP systems in Germany, as outlined in the coalition agreement, will remain
stable. The same also applies for the markets for natural gas and biogas
driven CHPs that 2G addresses. In their coalition agreement presented
yesterday, the future CDU/CSU and SPD governing parties described the first
important key aspects of the further structuring of the energy transition.
In connection with maintaining supply security the future federal
government has declared that (quotation): '. it should remain possible to
operate the necessary capacities of conventional and flexibly-deployable
power plants in an economically viable manner.' As far as natural
gas-driven CHPs are concerned, this can create opportunities for 2G to tap
additional market demand potentials, especially on the part of major energy
utilities, municipal utilities and energy contractors (IPPs).
The coalition partners have confirmed their objective of expanding CHPs'
share of electricity generation to 25 % by 2020 - compared with 15 % today.
This is equivalent to approximately 70 % growth potential over the next
seven years. The coalition agreement specifically sets out a new
government's intention of (quotation): 'in order to [implement] the EU
Energy Efficiency Directive [.] into German law so that the opportunities
included therein favor the recognition of the benefits of CHP and
utility-supplied heating with regard to primary energy and CO2 emissions
reductions compared with other heating systems.' For 2G, this could bolster
demand from the housing sector and local communities, especially in the 20
kW to 50 kW output range.
As far as the fundamental reform of the German Renewable Energies Act (EEG)
is concerned, the restructuring of the EEG levy plays a decisive role in
allowing the future coalition to place a brake on existing cost growth. The
agreement states that the 'Special Equalization Scheme' is to be restricted
to electricity-intensive companies facing international competition, and
that a balanced regulation for own electricity production is to be created.
With regard to 2G's CHPs, this means that, with a more restrictive
treatment of privileged status, many companies will be required to pay an
EEG levy again. This could make investments in predominately natural
gas-driven CHPs economically attractive. It remains to be seen how the
aforementioned minimum levy for producers of their own electricity will be
structured. The coalition partners have nevertheless committed themselves
to the following (quotation): '. to maintain the economic efficiency,
especially that of CHP plants and the utilization of raw materials process
gases. A de minimis limit is to be included for smaller plants. Legal
protection for existing own generation is to be ensured.'
When energy utilities, municipal utilities, IPPs and industrial companies
review purchases of CHPs from the perspective of economic efficiency -
besides energy costs - especially the utilization of thermal energy, the
benefits of decentralized supply, flexibility and manageability are
relevant decision-making criteria.
With regard to the biogas plant area, the agreement sets out, firstly, a
prioritization of waste and residues as biomass for new plants. Secondly,
it demands for existing plants an operating approach that is geared to
demand as far as possible, in order to exploit the benefits for system
stability. The greater flexibility that this necessitates is to be
accompanied by boosting existing biogas power plant capacity in the
repowering area. Consequently, biogas plants would emerge from their
economic, baseload-dominated 'insularity', thereby tapping their potential
as a standard energy variable.
For 2G, these regulations could generate market potentials for new systems.
In the light of the 'expanded 'plant' term' that the German Federal High
Court has recently clarified, operators, when repowering existing plants,
might also decide to opt for 2G's biogas-driven CHPs that are equipped with
corresponding, state-of-the-art control electronics and software. This
allows them to be managed by control centers on a minute by minute basis,
and to be integrated into virtual power plant grids. These new market
potentials would more than offset a potential reticence to invest due to
the levying of a charge on own electricity generation.
Given a growing renewable energies share, the coalition agreement also
raises the prospective necessity of storage units to offset seasonal
volatilities, pointing to the potential offered by power-to-gas. Research
programs in this direction are to be consolidated. 2G is active as a
partner in such a research project together with the industrial gas group
Linde, the wind power company Enertrag and Total oil group. This project
aims to set up and operate a wind hydrogen production plant with an
integrated and CO2-neutral public hydrogen fuelling station at
Berlin-Brandenburg airport. Hydrogen generated from wind-powered energy is
to be utilized as a fuel the first time. To this end, 2G has supplied a CHP
(agenitor 306) with up to 120 kW electric output that achieves up to 41 %
electric efficiency. With the adaptation of its highly-developed motor
technology to hydrogen fuel, 2G is collecting important empirical data in
this still-young technology field, and is positioning itself as an expert
technology provider.
As the second pillar of a sustainable energy policy transition, the
agreement between the future government parties envisages placing a
particular focus on energy efficiency. With a cross-sector approach that
spans buildings, industry, business and households, it aims to treat
electricity, heating and cooling on an equal basis. Today, 2G's CHPs are
already capable of making a significant contribution in this context with
total efficiencies of between 85 % and up to 100 % in many of the
aforementioned application spectrums.
2G Energy AG company profile
2G Energy AG is one of the internationally leading providers of CHPs for
decentralized combined heat and electricity supplies. 2G's product
portfolio offers electrical output between 2G kW and 2,000 kW for operation
with natural gas, biogas or biomethane. 2G has successfully installed more
than 4,000 modules in 25 countries to date. Its customer base spans
agricultural and industrial operations, local authorities, the housing
sector and large energy utilities. The high level of satisfaction among the
company's customers is closely connected with its dense service network and
the high technical quality and performance of 2G power plants. Through
combined heat and power generation, such plants achieve total efficiencies
of between 85% and far higher than 90%. 2G is consistently expanding its
technology leadership through continuous research and development work.
Along with the construction and manufacturing of CHP systems, the company,
which is based in Germany's Münsterland region, offers comprehensive
solutions ranging from planning and installation through to service and
maintenance.
In the context of Germany's new energy policy, CHPs within smart grids -
so-called virtual power plants - are becoming rapidly important due to
their predictable availability. 2G Energy (ISIN DE000A0HL8N9) is listed in
the Entry Standard of Deutsche Börse AG. The share capital amounts to EUR
4,430,000, and is split into 4,430,000 shares. As of June 30, 2013, the
company's founders held 56.0% of the shares, with the free float amounting
to 44.0%. In the 2012 financial year (January 1 to December 31), 2G Energy
generated EUR 146.5 million of revenue, EUR 16.6 million of earnings before
interest and tax (EBIT), and EUR 11.3 million of net income. The company
currently employs 486 staff.
Forthcoming dates in 2013
December 10, 2013 Prior Börse Capital Market Conference,
Frankfurt-Egelsbach
Further information: www.2-g.de
IR contact
2G EnergyAG
Benzstr. 3, 48619 Heek
Telephone: +49 (0) 2568 93 47-2795
Fax: +49 (0) 2568 93 47-15
E-mail: ir(at)2-g.de
Internet: www.2-g.de
End of Corporate News
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Language: English
Company: 2G Energy AG
Benzstr. 3
48619 Heek
Germany
Phone: +49 (0)2568-9347-0
Fax: +49 (0)2568-9347-15
E-mail: service(at)2-g.de
Internet: www.2-g.de
ISIN: DE000A0HL8N9
WKN: A0HL8N
Listed: Freiverkehr in Berlin, Düsseldorf, Stuttgart; Frankfurt in
Open Market (Entry Standard)
End of News DGAP News-Service
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