Chapter IV:

Analysis Strengths Active private individuals engaging in governance processes on energy policies on the local level Importance of teleheating Numerous regional best practice-cases with both solar power and biomass/-gas Good utilization rate and growth of manifold forms of biomass Existence of private financing models benefiting especially insulation and sanitation of private homes

Weaknesses Lacking cooperation between political authorities and enterprises Strained budget situation in the communities Low public acceptance of wind energy, and, accordingly, no large wind power plants Geothermal energy mostly an afterthought (high installation costs, low subsidies?)

Opportunities

Clear vision & goal definitions with regards to RE&EE from higher administrative levels

A total of 73 subsidies for RE, EE and environmental protection from federal and nation state

Subsidies for residential buildings linked to heating requirement of 36 kWh/a or lower

Weaknesses Lack of coordination between regions Global financial crisis potentially affecting power plant operators via credit requirements Sometimes arbitrary and lengthy approval procedures for (small) wind energy and water plant Low feed-in-tariffs for wind energy

Chapter V:
Develop strategy:

Business priorities Expand our Product leadership our competitive, innovative product portfolio, recognized expertise, and solid relationships with our customers and partners have brought us

market leadership. We want to expand it by continuing to provide the best-in-class offer on all our markets and channels, across the world. Boost our Solution business we want to leverage the expertise and resources of our company to expand our portfolio and develop high-value systems and services that meet the specific needs of our customers in targeted market segments. Make the grid smarter for our customers From Renewable Energy to Electric Vehicles via Demand-Response, more flexible Distribution networks and more energy-efficient buildings and homes and industrial sites, we want to provide smart grid-enabling products & solutions to connect our customers to the Smart Grid and with each other, while we build partnerships with complementary players and engage in collaborative pilot projects. Consolidate our industry As we grow our product portfolio, expand into systems and services, leverage the Smart Grid opportunities and enter new geographies, we want to combine solid organic growth with active external development through acquisitions, alliances, and partnerships.

Regional priorities The Energy challenge we are facing affects us all, but the immediate drivers vary from one region to another: urbanization, population growth, industrial development, energy security, pollution, expansion or upgrade of distribution networks We want to capture opportunities in new economies by leveraging our global capabilities, growing our local industrial, technological and organizational footprint, adapting our product and solution portfolio and managing

talent, while continuing to invest in mature markets, the birthplace of our expertise.

Chapter VI:
Recommendation Energy-efficient lighting systems Governments should require and promote improved lighting systems design and management. This should be done by ensuring that building codes promote the use of natural light and include MEPS for lighting systems. Further measures include information and training directed at architects, builders, owners and managers. Energy utilities and end-use energy efficiency Governments should establish regulatory and other policies to ensure that energy utilities support cost-effective, verifiable end-use energy efficiency improvements. Governments should: Ensure that verifiable energy efficiency options are allowed to compete directly with energy supply options in resource procurement and wholesale markets. Oblige the appropriate energy sector entity (e.g. regulated utility, competitive retail supplier or third-party entity) to deliver cost-effective energy efficiency to end-use consumers. Require that energy customers be provided with cost-reflective pricing, supporting information and technology necessary for consumers to better understand and manage energy use.

Utilise energy tariffs as a funding mechanism for energy efficiency.