An economically and ecologically balanced and secure energy supply is of eminent importance for every economy. In pursuing this objective as well as to achieve international targets, e.g. climate protection, and because of the decision to phase out nuclear power, the federal government gives greater priority to a larger share of the renewable energies in the various energy resources and to a rational use of all energy bearers.

A major focus of BAFA's activities is to implement the programme to promote renewable energies of the Federal Environmental Ministry.

It is BAFA's task to give grants and, thereby, to promote the increasing use of renewable energies in order to conserve the limited resources of fossil fuel and to make a contribution to environmental and climate protection. Assistance is provided for solar units, photovoltaic units in schools and biomass units.

Under the programme "Local consultations to save energy" BAFA gives grants for consultations with home owners by qualified engineers. The reduction of heat consumption in buildings as a result of these local consultations has diminished environmental pollution, mainly CO2-emissions.

BAFA promotes projects of the newly founded Deutsche Energie Agentur GmbH (DEnA) (German Energy Agency) by granting federal subsidies. DEnA task is to obtain lasting improvements in saving energy and a more efficient use of energy in private households, companies and public administration as well as the utilization of regenerative energy resources.

BAFA also grants subsidies for German coal mining. Thereby, it promotes the sale of German hard coal to power stations and steel industry and, in this way, strengthens the Federal Republic’s secure energy supply. In addition, it contributes essentially to a restructuring process in mining that is more bearable for the workers in the regions concerned.

The volume of grants from the federal budget will be continuously reduced from DM 7.5 billion in the year 2000 to the year 2005. The aim of these grants is to compensate for the difference between the production costs of the respective coal mining enterprise and the coal prices of third countries or the prices obtained ex mine, and to financially assist measures to close down mines. BAFA fixes the parameter for grants after checking the production costs and collating monthly the prices of third countries for steam coal and coking coal free German border.

Another assistance measure in coal mining are adaptation grants: elderly coal miners who loose their job due to closure, partial closure or rationalisation measures approved by the Federal Ministry of Economics and Labour can get an adaptation grant up to a maximum of five years until they reach the retirement age for the coal miners’ pension scheme.

Statistics:

• Bituminous coal imports
• Natural gas imports
• Natural gas data
• Official oil data for the Federal Republic of Germany
• Natural gas data

As a reaction on the oil crisis in 1973/74 the Western industrial nations adopted the International Energy Programme, thereby creating a system to efficiently counter a shortfall of the oil supply in the future. Agreements on i. a. stock-holding, co-ordinated restrictions on consumption and redistribution of oil in times of crisis were concluded. The International Energy Agency (IEA) was founded as a coordinating office for the international oil crisis mechanism. In co-operation with the oil industry and BMWi, BAFA is responsible for the implementation of different measures to manage the consequences of a disruption of supplies in the Federal Republic of Germany. BAFA permanently informs the IEA about the supply situation and current trends in the oil market of the Federal Republic. For this purpose, data are collected monthly from the German oil companies. The results of these statistics are published in the Official Mineral Oil Statistics. They serve as the basis for the observation and analysis of the development of the oil market as well as for political decisions on energy and environment.

By a programme covering several years, BAFA promotes e.g. the processing of waste oil to basic oil. This is to support technical innovation in the processing industry for strengthening competitiveness. The basis is the EU-required preference of material to energetic recycling of waste oil.

In case of natural gas, BAFA is in charge for the licensing of import treaties with a period of delivery of 24 months as well as the collation and publication of different statistics (incl. border crossing prices).

Every year BAFA requires reports from the German oil industry for the International Fund to Compensate for Oil Pollution. The reports are the basis for fixing the contribution of the German oil industry to the fund. Under certain conditions the fund compensates for damage caused by oil tanker accidents.