Wind policy in Germany – r emoving the bottlenecks for a continuing success story

Wind policy in Germany – removing the bottlenecks for a continuing success story

Dania Röpke, Policy Advisor

German Wind Energy Association

2011|03|16

Agenda

The target: contrasting the government‘s and industry‘s targets

The policy: high investment stability through the EEG

The results: installations and market shares 2010

Challenges and opportunities onshore and offshore

Outlook: EEG amendment

Conclusions


Government’s estimations below industry’s

NREAP target non-binding Targets to be achieved by national measures only

Development of installed wind capacity underestimated

EU dir. 2009/28/EG

NREAP REPAP (Industry)

Gross final energy consumption 18% 19.6% 28%

Electricity sector Not defined 38.6% 47%

NREAP REPAP (Industry)

Onshore wind 35.750 45.000Offshore wind 10.000 10.000Total wind 45.750 55.000

Agenda






Conclusions

The policy: high investment security through the Renewable Energy Sources Act (EEG)

Main features Fixed initial and basic tariff for 20 years Priority access to the power grid, transmission and distribution Obligation for grid operators to optimize, boost and expand the grid Frequent changes between FIT and direct sales possible

Close up: Remuneration levels Onshore

– Initial tariff: 9.02 ct/kWh | 1%/a degression– Boni for repowering and system services of 0.5 ct/kWh each

Offshore– Initial tariff: 13 ct/kWh + 2 ct/kWh for projects before end of 2015 | 12 years– Basic tariff: 3.5 cent/kWh– Degression: 5%/a for new installations starting in 2015

Agenda






Conclusions

The results: total installed wind capacity in Germany

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

26,000

28,000

Neu installierte Leistung in Megawatt Gesamte installierte Leistung in Megawatt

31.01.2010

Total installed capacity: 27.215 MWNew installed capacity: 1.551,03 MW (183.39 MW Repowering)

31.01.2010

Total installed capacity: 27.215 MWNew installed capacity: 1.551,03 MW (183.39 MW Repowering)

Total installed capacity in megawattNew installed capacity in megawatt

The results: market shares of turbine producers in Germany

Other Other

Source: BWE/DEWI.

Agenda

The target: contrasting the Government‘s and industry‘s targets





Conclusions

Increase new commissioned sites

Loosen rules for turbine height and rules for

minimum distances from communities

Kick-off repowering

Speed up grid expansion

Reduce temporal political insecurity

Onshore wind energy: removing the bottlenecks

Challenges and opportunities offshore wind

Government targets: 10 GW until 2020 | 20 - 25 GW until 2025/2030

Offshore in 2011: Alpha ventus: 60 MW | Baltic 1: 48,3 MW | BARD 1: 400 MW

Challenges Sites in large distance from shores and in high water depths Capital intensive project finance Grid connection

Overcoming the challenges

Experience gained with pilot projects

Tailored financing concepts

Grid connection responsibility of the TSO

Agenda






Conclusions


EEG 2012 enters into force on 2012|01|01

Key topics EEG amendment Continuity of wind regulations expected System and market integration

Key demands German Wind Energy Association Maintain the EEG‘s main features Market integration: optional market premium | renewables in balancing services market System integration: consistency bonus for virtual power plants

Agenda






Conclusions

Conclusion

Large potential for onshore and offshore wind – underestimated by the government

High investment security through the EEG

Stalled onshore wind capacity growth due to structural bottlenecks and investment insecurity caused by political uncertainty

Offshore wind capacity growth picked up: experience gained “offshore” and innovative financing concepts

Key demand for amendment to the EEG: maintain framework conditions and hence investment security of EEG 2009

More information: www.eeg-aktuell.de

The German Wind Energy Association BWE Largest renewable energy association worldwide 20.000 members: manufacturers, suppliers, operators, experts etc. About 40 staff Contact #1 for politics and media Activities

– Political communication and lobbying on the federal, state and regional level as well as on the intl./EU level (member of EWEA, GWEC, EREF und WWEA)

– Public relations– Seminars, workshops, conferences – Wind market overviews– Publisher of the leading professional renewable energy journal “neue energie” and

“new energy”

Thank you for your attention.German Wind Energy Association (BWE)

Tel.: +49 30 28482 179

E-Mail: [email protected]

Wind policy in Germany – r emoving the bottlenecks for a continuing success story

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