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
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
The target: contrasting the government s and industry s targets Government s estimations below industry s EU dir. 2009/28/EG NREAP REPAP (Industry) Gross final energy consumption 18% 19.6% 28% Electricity sector Not defined 38.6% 47% NREAP target non-binding Targets to be achieved by national measures only Development of installed wind capacity underestimated NREAP REPAP (Industry) Onshore wind 35.750 45.000 Offshore wind 10.000 10.000 Total wind 45.750 55.000
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
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 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
The results: total installed wind capacity in Germany 28,000 26,000 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 31.01.2010 Total installed capacity: 27.215 MW New installed capacity: 1.551,03 MW (183.39 MW Repowering) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Neu New installierte installed capacity Leistung in in megawatt Megawatt Gesamte Total installed installierte capacity Leistung in megawatt 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 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
Onshore wind energy: removing the bottlenecks 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
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 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
Outlook: EEG amendment 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 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
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
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Thank you for your attention. German Wind Energy Association (BWE) Tel.: +49 30 28482 179 E-Mail: d.roepke@wind-energie.de