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Landeshauptstadt
                         München
                         Hep Monatzeder
                         Bürgermeister




Local Climate Protection
and Energy Strategy
in the City of Munich




Martin Kunschak
City of Munich

Kiew, April 10th, 2013


                                            1
Landeshauptstadt
                                                                München
                                                                Hep Monatzeder
Outline                                                         Bürgermeister




1. Background information on Munich
2. The City of Munich's Strategy: objectives, framework, factors of success
3. Municipal grant programme on energy conservation
4. The “Munich Solar Initiative”
5. The „Bauzentrum München“
6. German Legislation: KfW grants + loans and Renewable Energies Act (EEG)




                                                                                   2
Landeshauptstadt
                                     München
                                     Hep Monatzeder
                                     Bürgermeister



Data of Munich   Inhabitants: 1 440 578 (Jan 2013)
                 Area: 310,7 sqkm
                 Inhabitants per sqkm: 4 637
                 Vehicles: 740 554 (Jan 2013)
                 GDP: 57 474 Euro per cap. (2010)

                 Services: 60% of GVA
                 Production: 25% of GVA
                 Trade, gastronomy, transport:
                 15% of GVA
                 (GVA: Gross Value Added)

                 “English Garden” (3.73 sqkm):
                 one of the largest public inner-city
                 parks of the world

                                                        3
Landeshauptstadt
                        München
                        Hep Monatzeder
                        Bürgermeister

Munich – a sustainable
energy city

Objectives:

Voluntary commitment to CO2 reduction:

→ minus 50 % CO2-emissions by 2030
(basis year 1990) (= 3,15 t CO2/capita),
accordingly minus 10 % every 5 years


→ Energy Security
→ Independence in Energy supply,
  Financial and Political aspects
→ Economically viable
→ Risk free way
→ Local value and energy

                                           4
Landeshauptstadt
                                                München
                                                Hep Monatzeder
                                                Bürgermeister
Munich's Framework for Climate
protection and sustainable energy policy


Framework:


     Public sector: Integrated Action Program
    for Climate Protection in Munich

    Private sector:
    Munich for Climate Protection Club

    Regional, national and international
    cooperation


    The Utility Company's (SWM)
    “Renewable Energies expansion
     campaign“
                                                                   5
Landeshauptstadt
                                            München
                                            Hep Monatzeder
                                            Bürgermeister
Munich's Framework for Climate
protection and sustainable energy policy


Munich's factors of success:
●
    Population's affinity to green issues
●
    Longstanding “green” government
●
    Comfortable financial situation
●
 Many Hightech businesses +
 leading Universities
→ Knowhow + Economic potential
  for innovations

 SWM 100% owned by Munich
→ Political influence on
  Energy Production
                                                               6
Landeshauptstadt
                                                              München
                                                              Hep Monatzeder
Municipal grant programme on                                  Bürgermeister

energy conservation (since 1989)

Who?
  → any private building owner, private and commercial buildings and units

What?
  → Grants of maximum 13 000 € per unit

 → For energy efficient new buildings and high quality refurbishments
       (Munich standard, < 40kwH/m²a)

 → Insulation, windows

 → Solarthermal hot water and heating, up-to-date heating techniques

 → Connection to district heating grid

 → Wood pellet heating systems


                                                                                 7
Landeshauptstadt
                                                                                                                                                                                                 München
                                                                                                                                                                                                 Hep Monatzeder
                                                                                                                                                                                                 Bürgermeister
             g r a n t p r o g r a m m e e n e r g y c o n s e r v a t io n I


800

                                                                                                                                                                              Municipal grant
                                                 t o t a l C O 2 re d u c t io n s in c e s t a rt o f p ro g ra m m e in k t

                                                 g ra n t s s in c e s t a rt o f p ro g ra m m e in m io €

700
                                                                                                                                                             670
                                                                                                                                                                              programme on
600                                                                                                                                                                  590
                                                                                                                                                                              energy conservation
                                                                                                                                               515

500
                                                                                                                                        445


400
                                                                                                                                                                              •   € 40 200 000 paid out 1989-2009
                                                                                                                                 378

                                                                                                                           319                                                •
                                                                                                                                                                                  € 14 000 000 annual subsidies
300
                                                                                                                   264                                                            actually
                                                                                                            212
200
                                                                                                    163
                                                                                                                                                                              •   Total local reduction of CO2:
                                                                                            120                                                                                   670 000 t
100                                                                           66
                                                                                    89
                                                                        49                                                         2 1 ,5                            4 0 ,2
                                                           27 36                                          1 4 ,5       1 7 ,5                    2 7 ,0
                                           15      20                                      9 ,8
                                                                                                                1 6 ,0        1 9 ,0      2 5 ,1
      1          4          7      11                          3 ,6 4 ,8
                                                                             6 ,5 8 ,2             1 1 ,9
                                               2 ,5 2 ,9                                                                                                        2 9 ,5
  0          0 ,4 1 ,2             2 ,0 2 ,3
          1989
                     1990
                                1991
                                        1992
                                                1993
                                                        1994
                                                               1995
                                                                      1996
                                                                             1997
                                                                                    1998
                                                                                            1999
                                                                                                     2000
                                                                                                            2001
                                                                                                                   2002
                                                                                                                          2003
                                                                                                                                 2004
                                                                                                                                        2005
                                                                                                                                               2006
                                                                                                                                                      2007
                                                                                                                                                              2008
                                                                                                                                                                      2009




                                                                                                                                                                                                                    8
Landeshauptstadt
          grant programme energy conservation II                                                                            München
                                                                                                                            Hep Monatzeder
                                                                                                                            Bürgermeister
450
                    triggered investments since start of programme in mio €
                                                                                                      404
                    grants since start of programme in mio €
400
                                                                                                             Municipal grant
350
                                                                                                             programme on
                                                                                                             energy conservation
300                                                                                                   302
                                                                                         277


                                                                                                             € 404 000 000 investments
250                                                                                      261
                                                                           228                               triggered until 2009
                                                                         199                                 mainly for local economy
200                                                               182
                                                               164
                                                                                                             → 1 € public subsidy causes
150
                                                                                                               10 € private expenditure
                                                        146
                                                                                                             → a programme not only for
                                                      114
                                                                                                               climate protection on local
100                                                89
                                                                                                               level but also for the local
                                              68
                                                                                                               economy
                                         47                                                           40,2
50                                                                                       27,0
                                     30                                    21,5
                                 20                            14,5 17,5
                                                   9,8                 19,0
           4      7 8      10 14           6,5 8,2    11,9        16,0
                                                                                                 29,5
      1                        2,9 3,6 4,8                                        25,1
 0        0,4 1,2 2,0 2,3 2,5
                                1994
           1990

                        1992




                                       1996

                                               1998

                                                        2000

                                                                  2002

                                                                           2004


                                                                                  2006

                                                                                               2008




                                                                                                                                               9
Landeshauptstadt
                                                            München
                                                            Hep Monatzeder
The “Munich Solar Initiative”                               Bürgermeister




Founded 2010 as private corporation (GmbH&Co.KG)


    Shareholders: City of Munich, SWM, BayWa AG

    Independent, public welfare orientated

Objectives:
• Overcoming the market failure in cities
  (many usable surfaces – few photovoltaic installations)
• Mobilizing roof surfaces and funds
• Involving Munich's citizens
• Promoting Munich's image as a “Solar City”
• Making a valuable contribution to meeting the
    climate protection targets


                                                                               10
Landeshauptstadt
                                                   München
                                                   Hep Monatzeder
The “Munich Solar Initiative”                      Bürgermeister




Fields of Action:
• Consulting and planning solar projects
• Facilitating and brokering project rights and
  photovoltaic installations
• Expert advice in case of damages and operating
  problems
• Optimizing existing solar plants




                                                                      11
Landeshauptstadt
                                                              München
                                                              Hep Monatzeder
The “Munich Solar Initiative”                                 Bürgermeister




Challenges identified for photovoltaics in Munich:
• Ownership issues:
    Complex: many jointly owned apartments, cooperatives and
    one- or two-family homes
• Shapes and sizes of roofs:
    Roof surfaces are often heterogeneous and small, many
    on-the-roof installations and dormers
• Buildings restrictions:
    Strict building regulations, especially in terms of heritage
    protection and preservation of building groups




                                                                                 12
The „Bauzentrum Muenchen“, a centre of                          Landeshauptstadt
                                                                München
education and advice on green housing                           Hep Monatzeder
                                                                Bürgermeister



                   • Promoting the Munich policy on
                     sustainable building and living by
                     educating and advice
                   • Target groups: craft firms, builders and
                     property developers, citizens
                   • 55 000 visitors, 260 events (2011)
                   • Cost-free counselling for 8 000 people
                     (2011)
                   • Organising a yearly energy fair with
                     varying craft guilds




                                                                                   13
Landeshauptstadt
                                                                München
                                                                Hep Monatzeder
                                                                Bürgermeister
German federal legislation promoting
Renewables
 Two fold strategy:
 1. Grant programmes: KfW-grants and loans
 → e.g. Energy efficient refurbishment:
        grants up to 18.750 €
        loans up to 75.000 € per unit, 1% interest rate
        flexible and combinable
        Solar power + PV: loans up to 25 Mio. €, 1,46% interest rate
 2. Gratuity scheme: Renewable Energy Sources Act (EEG)
 → fix tariff for electricity from renewables
   e.g. 12.70 ct/kWh Hydropower, degressing rate
        24.43 ct/kWh Solar power from rooftops,
        17.94 ct/kWh free standing installations

                                                                                   14
Thank you for your attention!   Landeshauptstadt
                                München
                                Hep Monatzeder
                                Bürgermeister




For further information:
www.muenchen.de
martin.kunschak@muenchen.de                        15

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Local Climate Protection and Energy Strategy in the City of Munich

  • 1. Landeshauptstadt München Hep Monatzeder Bürgermeister Local Climate Protection and Energy Strategy in the City of Munich Martin Kunschak City of Munich Kiew, April 10th, 2013 1
  • 2. Landeshauptstadt München Hep Monatzeder Outline Bürgermeister 1. Background information on Munich 2. The City of Munich's Strategy: objectives, framework, factors of success 3. Municipal grant programme on energy conservation 4. The “Munich Solar Initiative” 5. The „Bauzentrum München“ 6. German Legislation: KfW grants + loans and Renewable Energies Act (EEG) 2
  • 3. Landeshauptstadt München Hep Monatzeder Bürgermeister Data of Munich Inhabitants: 1 440 578 (Jan 2013) Area: 310,7 sqkm Inhabitants per sqkm: 4 637 Vehicles: 740 554 (Jan 2013) GDP: 57 474 Euro per cap. (2010) Services: 60% of GVA Production: 25% of GVA Trade, gastronomy, transport: 15% of GVA (GVA: Gross Value Added) “English Garden” (3.73 sqkm): one of the largest public inner-city parks of the world 3
  • 4. Landeshauptstadt München Hep Monatzeder Bürgermeister Munich – a sustainable energy city Objectives: Voluntary commitment to CO2 reduction: → minus 50 % CO2-emissions by 2030 (basis year 1990) (= 3,15 t CO2/capita), accordingly minus 10 % every 5 years → Energy Security → Independence in Energy supply, Financial and Political aspects → Economically viable → Risk free way → Local value and energy 4
  • 5. Landeshauptstadt München Hep Monatzeder Bürgermeister Munich's Framework for Climate protection and sustainable energy policy Framework:  Public sector: Integrated Action Program for Climate Protection in Munich  Private sector: Munich for Climate Protection Club  Regional, national and international cooperation  The Utility Company's (SWM) “Renewable Energies expansion campaign“ 5
  • 6. Landeshauptstadt München Hep Monatzeder Bürgermeister Munich's Framework for Climate protection and sustainable energy policy Munich's factors of success: ● Population's affinity to green issues ● Longstanding “green” government ● Comfortable financial situation ● Many Hightech businesses + leading Universities → Knowhow + Economic potential for innovations  SWM 100% owned by Munich → Political influence on Energy Production 6
  • 7. Landeshauptstadt München Hep Monatzeder Municipal grant programme on Bürgermeister energy conservation (since 1989) Who? → any private building owner, private and commercial buildings and units What? → Grants of maximum 13 000 € per unit → For energy efficient new buildings and high quality refurbishments (Munich standard, < 40kwH/m²a) → Insulation, windows → Solarthermal hot water and heating, up-to-date heating techniques → Connection to district heating grid → Wood pellet heating systems 7
  • 8. Landeshauptstadt München Hep Monatzeder Bürgermeister g r a n t p r o g r a m m e e n e r g y c o n s e r v a t io n I 800 Municipal grant t o t a l C O 2 re d u c t io n s in c e s t a rt o f p ro g ra m m e in k t g ra n t s s in c e s t a rt o f p ro g ra m m e in m io € 700 670 programme on 600 590 energy conservation 515 500 445 400 • € 40 200 000 paid out 1989-2009 378 319 • € 14 000 000 annual subsidies 300 264 actually 212 200 163 • Total local reduction of CO2: 120 670 000 t 100 66 89 49 2 1 ,5 4 0 ,2 27 36 1 4 ,5 1 7 ,5 2 7 ,0 15 20 9 ,8 1 6 ,0 1 9 ,0 2 5 ,1 1 4 7 11 3 ,6 4 ,8 6 ,5 8 ,2 1 1 ,9 2 ,5 2 ,9 2 9 ,5 0 0 ,4 1 ,2 2 ,0 2 ,3 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 8
  • 9. Landeshauptstadt grant programme energy conservation II München Hep Monatzeder Bürgermeister 450 triggered investments since start of programme in mio € 404 grants since start of programme in mio € 400 Municipal grant 350 programme on energy conservation 300 302 277 € 404 000 000 investments 250 261 228 triggered until 2009 199 mainly for local economy 200 182 164 → 1 € public subsidy causes 150 10 € private expenditure 146 → a programme not only for 114 climate protection on local 100 89 level but also for the local 68 economy 47 40,2 50 27,0 30 21,5 20 14,5 17,5 9,8 19,0 4 7 8 10 14 6,5 8,2 11,9 16,0 29,5 1 2,9 3,6 4,8 25,1 0 0,4 1,2 2,0 2,3 2,5 1994 1990 1992 1996 1998 2000 2002 2004 2006 2008 9
  • 10. Landeshauptstadt München Hep Monatzeder The “Munich Solar Initiative” Bürgermeister Founded 2010 as private corporation (GmbH&Co.KG)  Shareholders: City of Munich, SWM, BayWa AG  Independent, public welfare orientated Objectives: • Overcoming the market failure in cities (many usable surfaces – few photovoltaic installations) • Mobilizing roof surfaces and funds • Involving Munich's citizens • Promoting Munich's image as a “Solar City” • Making a valuable contribution to meeting the climate protection targets 10
  • 11. Landeshauptstadt München Hep Monatzeder The “Munich Solar Initiative” Bürgermeister Fields of Action: • Consulting and planning solar projects • Facilitating and brokering project rights and photovoltaic installations • Expert advice in case of damages and operating problems • Optimizing existing solar plants 11
  • 12. Landeshauptstadt München Hep Monatzeder The “Munich Solar Initiative” Bürgermeister Challenges identified for photovoltaics in Munich: • Ownership issues: Complex: many jointly owned apartments, cooperatives and one- or two-family homes • Shapes and sizes of roofs: Roof surfaces are often heterogeneous and small, many on-the-roof installations and dormers • Buildings restrictions: Strict building regulations, especially in terms of heritage protection and preservation of building groups 12
  • 13. The „Bauzentrum Muenchen“, a centre of Landeshauptstadt München education and advice on green housing Hep Monatzeder Bürgermeister • Promoting the Munich policy on sustainable building and living by educating and advice • Target groups: craft firms, builders and property developers, citizens • 55 000 visitors, 260 events (2011) • Cost-free counselling for 8 000 people (2011) • Organising a yearly energy fair with varying craft guilds 13
  • 14. Landeshauptstadt München Hep Monatzeder Bürgermeister German federal legislation promoting Renewables Two fold strategy: 1. Grant programmes: KfW-grants and loans → e.g. Energy efficient refurbishment: grants up to 18.750 € loans up to 75.000 € per unit, 1% interest rate flexible and combinable Solar power + PV: loans up to 25 Mio. €, 1,46% interest rate 2. Gratuity scheme: Renewable Energy Sources Act (EEG) → fix tariff for electricity from renewables e.g. 12.70 ct/kWh Hydropower, degressing rate 24.43 ct/kWh Solar power from rooftops, 17.94 ct/kWh free standing installations 14
  • 15. Thank you for your attention! Landeshauptstadt München Hep Monatzeder Bürgermeister For further information: www.muenchen.de martin.kunschak@muenchen.de 15