facilitator developing an industry - wind energy in germany maria hoeft, german windenergy...

Facilitator

Developing an Industry - Wind Energy in GermanyMaria Hoeft, German WindEnergy Association (BWE)23 November 2015, Ho Chi Minh City

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1. BWE at a Glance2. Status of Wind Energy and Industry in Germany3. The Renewable Energy Act (EEG)4. Outlook

Agenda

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German Wind Energy Association (BWE) at a Glance

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About the BWE

• One of the largest associations in the field of renewable energies (more than 20,000 members)

• Political work on national/federal and regional level

• Partner of 1,100 companies (manufacturers, suppliers, project planners and experts) and of 2,200 operating companies

• Member of other associations and committees on international level (EWEA, EREF, GWEP and WWEA)

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Regional Associations

• 13 federal state associations and 41 regional associations

• Intensive networking, consultancy and local support

• Regional exchange between economy and politics

• Parliamentary events

Source: BWE

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Committees and Working Groups

CommitteesExperience and know how

• Investment• Operator and operator

forums• Plant management• Financing• Manufacturers and

suppliers• Law• Planning• Expert• Site review• Science

Working GroupSpecial issues

• Aviation obstruction markers

• Foundations• Radar• Public relations• Nature conservation &

wind energy• Grids• Rotor blade• Continued operation of

WTG's• Market transformation

Forum of Operators

• Forum independent maintenance

• Enercon• NEG-Micon• Nordex• Senvion• Siemens Wind Power• Vestas

Source: BWE

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Status of Wind Energy and Industry in Germany

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Wind Energy Deployment in Germany

2013 2014 1/2015

Total installed capacity in MW 33,729 39,165 39,208.94

New installed capacity in MW 2,998 4,914.81 1,185.49

Number of WEP (cumulated) 23,645 25,125 25,152

Repowering (decommissioned) in MW 257 364.35 92.28

Repowering (newly erected) in MW 766 1,148 119.4

New installed WEP (gross) 1,145 1,908 443

Energy production by wind in bn kWh 51,7 56*

Share of wind energy in electricity consumption 8,6 9,7*

Source: Deutsche WindGuard, 2014 | BMWI, 2015 | AG Energiebilanzen e.V., 2014 | * based on provisional data

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Annual installed capacity in MW (gross/without Repowering)

Wind Energy Deployment in Germany

Source: Deutsche WindGuard, 2012 – 2014 | DEWI 2009 - 2011

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Technology Development

2014201320122011201020092008200720062005200420032002200120000

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250

2,500

2,750

2,690

Average WEP configuration in kW

Source: Deutsche WindGuard, 2012 – 2014 | DEWI 2009 - 2011

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Technology DevelopmentDevelopment of WEP configuration

Source: BWE

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Technology DevelopmentRepowering – Less wind energy turbines produce more electricity

Source: BWE

• Due to extensive research and development, wind turbine technology has made an enormous leap forward in recent years.

• A single wind turbine in the newest performance class can supply up to 4,800 three-person households with clean power.

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Wind Energy Deployment in GermanyTotal installed capacity in MW and WEP 2014

Source: DEWI, 2011 | Deutsche WindGuard, 2014

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Technology DevelopmentRepowering – Less wind energy turbines produce more electricity

Source: BWE

• Due to extensive research and development, wind turbine technology has made an enormous leap forward in recent years.

• A single wind turbine in the newest performance class can supply up to 4,800 three-person households with clean power.

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Costs of Wind Energy DevelopmentInvestment costs per kW in 2012

Source: Deutsche WindGuard, 2013

WEP (main investment costs)FoundationGrid Access

DevelopmentPlanning

Others

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Costs of Wind Energy DevelopmentDevelopment of main investment costs in €/kW

Source: Deutsche WindGuard, 2013

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Costs of Wind Energy DevelopmentDevelopment of additional investment costs in €/kW

Source: Deutsche WindGuard, 2013

Foundation Grid access Development Planning TotalOthers

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Levelized Electricity Generation Costs 2012

Source: Deutsche WindGuard, 2013

Levelized electricity costs in €/MWh

Levelized remuneration 2014 incl. SDL-bonus in €/MWh

Levelized remuneration 2014 without SDL-bonus in €/MWh

€/MWh

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Socio-economic Costs

Source: Forum Ökologisch-Soziale Marktwirtschaft e.V. (FÖS), 2012/13, https://www.wind-energie.de/sites/default/files/download/publication/full-costs-power-generation/bwe_greenpeacestudie_engl_02-2013_final.pdf

External costs of nuclear energy

Not internalised external costs

State support with budget effects (A+B)

Electricity price (spot market/EEG tariff)

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Wind Industry in GermanyEmployment, investment, added value and export

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Employment in Renewable Energies

Source: GWS 2014 and 2011/2012

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Added Value Wind Energy Onshore 2012

Source: DIW Econ, 2014

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Added Value Wind Energy Onshore 2012

Source: DIW Econ, 2014

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Investment in Wind Energy

Source: Deutsche WindGuard, 2012 – 2014 | DEWI 2009 – 2011 | ‘Global Trends in Renewable Energy Investment 2015’ Report (GTR)

Worldwide and in Germany in bn EUR

2014201320122011201020090

10

20

30

40

50

60

70

80

3.452.572.241.762.17

69.94

31.98

38.6834.7534.29

34.07

in Germany Worldwide (without Germany)

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Export Shares of German OEMs

Source: DEWI 2011 | Deutsche WindGuard, 2013

Export rate and domestic use in percent

201220112010200920082007200620050

10

20

30

40

50

60

70

80

90

676666

758183

7471

333434

251917

2629

Export rate Domestic use

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Success by reliability

Renewable Energy Act (EEG)

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The Evolution of the EEG1991 Electricity Feed-in Law (Stromeinspeisegesetz) 1997 Amendment of the Building Code – WEP qualify as privileged building projects1998 Kyoto Protocol – 21% CO2 reductions1998 German Energy Industry Act (EnWG) – power market liberalisation (implementation of European legislation)

2000 Renewable Energy Act (EEG) – priority dispatch2002 Nuclear Energy Act – reducing dependence on nuclear power

2004 1st amendment of the EEG2005 European Emissions Trading System (ETS)

2009 2nd amendment of the EEG – FiT’s, binding targets (implementation European legislation, 20-20-20 targets)

2010 /11 “Energy Concept” – nuclear phase out by 2022

2012 3rd amendment of the EEG – reference yield model2014 4th amendment of the EEG – market integration2015 Electricity Market 2.0 – making markets fit for RES, RES fit for markets

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Key Aspects of the EEG until 2014

• Fixed remuneration for fed-in electricity (for 20 years)• Guaranteed grid access• Priority feed-in

successful instrument for the implementation of renewable energies

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The EEG Mechanism

Source: BWE

RES generator

grid operator consumer

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EEG 2014 – What has been changed?

Source: BWE

Amendments compared to the EEG 2012

Amendments

• Grid connection, technical/operational provisions• „Green electricity privilege“• Reduction of the support level• Initial rate, basic rate of remuneration, reference

yield• Trajectory and „flexible cap“ • Mandatory direct marketing • Exceptional FiT • Support reduction in case of negative prices for

six consecutive hours• Remote controlling • Plant register• Key-date regulation• Tendering

Remains

• Service bonus for old plants (start of operation before 1 January 2009)

• Feed-in management• Hardship clause• Opportunity for pro-rata direct marketing

Cancelled

• Service bonus for new installations• Repowering-Bonus for new installations• Management premium for new installations• „Green electricity privilege“

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Remuneration Wind Energy Onshore

Source: BWE

Initial & basic remuneration, reference yield starting 2014

EEG

201

2 Initial remuneration:8.93 ct/kWh

Basic remuneration:4.87 ct/kWh

Reference yield:5 (site ≥ 150 %) to 20 years (site ≤ 82.5 %) initial tariff

Calculation of duration:linear

EEG

201

4 Initial remuneration:8.9 ct/kWh

Basic remuneration:4.95 ct/kWh

Reference yield:5 (site ≥ 130 %) to 20 years (site ≤ 80 %) initial tariff

Calculation of duration:not linear

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Remuneration Wind Energy Onshore

Source: BWE

Degression after 2014

EEG

201

2 1.5 % starting 2013

EEG

201

4 Aspirated degression 0.4 % per quarter (starting 2016)

„flexible cap“ Determines degression

Publishing of the quarterly tariff: 5 months in advance (respectively)Reference period for tariff calculation:12 calender months before

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Direct MarketingNEW: Mandatory direct marketing from 1 August 2014

• Feed-in-tariff for small wind turbines and as emergency option for direct

marketing plants only

• Financial support via market premium

§Source: EEG, BWE

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Negative PricesNEW: Reduction of support in case of negative prices from 1 January 2016

§• In case of negative market prices for six consecutive hours, support prospects

reduce to zero

• excemption: WEPs with an installed capacity of < 3MW or WEPs starting

operation before 1 January 2016

Source: EEG, BWE

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Wind Energy Share in EEG Surcharge

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Development of Surcharge and Market Price

EEG surcharge

Market price

Ct./kWh

Source: CLENS, TSO, BEE, 2015

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Development of Household Electricity Prices

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Outlook

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German Renewable Energy Targets

• Reduction of emissions compared to 1990• 40 percent until 2020• 80 – 95 percent until 2050

• Share of renewable energies in total energy consumption• 18 percent until 2020

• Share of renewable energies in gross electricity consumption • 35 percent until 2020• 40 – 45 percent until 2025• 55 – 60 percent until 2035

Source: EEG

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Status QuoShare of renewable and wind energy in final energy consumption in percent

2014201320122011201020092008200720062005200420032002200120000

5

10

15

20

25

30

9.7

1.8

27.8

6.7

Wind Energy Renewable EnergiesSource: AG Energiebilanzen, 2015

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Future Prospects

2017

EEG 2000

?Tendering

What will the future bring?

Source: BWE

EEG 2012

EEG 2014

2012

2014

2016

Obligatory direct marketing

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Questions?Thank you for your attention!Bundesverband WindEnergie e.V. T +49 (0)30 / 21 23 41 - 246Neustädtische Kirchstraße 6 F +49 (0)30 / 21 23 41 - 41010117 Berlin m.hoeft@wind-energie.de

www.wind-energie.de