Positions of the wind industry
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1 WEED 2014: Auction systems for wind energy: Insights and lessons learned for emerging and developing economies Positions of the wind industry Henning Dettmer, CEO, Bundesverband WindEnergie e.v. Johannes Schiel, Manager Wind Energy, VDMA Power Systems Berlin, Onshore Wind Energy in Germany Annual installed capacity Outlook 2014 MW MW Berlin,
2 Onshore Wind Energy in Germany and Worldwide Investments in onshore wind turbines in 2013 compared to investments in turbines worldwide (without Germany) in billon Euro 3,45 10,8% investments in turbines in Germany in billion Euro 2012 investments in turbines worldwide (without Germany) in billion Euro 2,57 investments in turbines in 6% Germany in billion Euro 31, % 38,68 94% Berlin, Ownership structure of wind energy onshore projects in 2012 Privat Individuals: 47.9% Developer: 21.6% Farmer: 2.0% Funds/Banks: 14.4% Big Energy Utilities: 2.6% (E.ON, RWE, Vattenfall, EnBW) Others: 11.5% Reference: BWE, Neue Energie 4 2
3 Acceptance of the Energy Transition among the German population Continuation of the Energy transition is. important: 27% very important: 66% not important: 6% Don t know/ no statement: 1% Berlin, Core elements of the German New Renewables Energy Act (EEG) Annual target corridor of 2,500 MW (wind onshore) For an undercutting or extension of the target corridor the degression will de- or increase Cancellation of the management bonus for new installations from 1 August 2014 Mandatory direct marketing from 2016 for all new installations bigger than 100 kw Marketing of green electricity given the European legislative regulations are complied with and costs for consumers do not increase Introduction of a register for all new installations Introduction of a tendering system from 2017 Berlin,
4 Positions of the wind industry regarding tendering procedures (I) Target realisation The EEG 3.0 for the implementation of a tender system must guarantee the realisation of the defined target corridors for the respective renewable sources Cost efficiency The design of tendering systems must be system- und innovationdriven. Focussing solely on installation-based electricity costs is counteracting a wholistic system-oriented approach. Preservation of stakeholder diversity Acceptance and stakeholder diversity remain key elements for the further development of renewable energies Berlin, Positions of the wind industry regarding tendering procedures (II) Consideration of German specifica Specific conditions in Germany deriving from its technology leadership and a significant installation stock have to be taken into consideration Implementation of the reference yield modell For the preservation of acceptance and grid compatibility as well as for a just regional distribution of on-shore wind the reference yield modell has to remain within a tender system Utilisation of flexibilities provided by the European state aid guidelines The tender design must be technology specific. Here, the options provided by the European state aid guidelines are to be made use of. Similarly, the European de-minimis rules must translate into German legislation Berlin,
5 Positions of the wind industry regarding tendering procedures (III) The Wind Industry needs reliable political framework conditions to enter markets in developing and emerging markets With a considerable and growing market local content will grow automatically. Thus, local content criteria should be prevented Fixed feed-in tariffs have proven to provide the most reliable framework conditions but other models can also be reliable If developing or emerging countries choose tendering systems they should at least learn from the mistakes and the experience in markets like Brazil and South Africa But: All markets are different. Country, energy system and industry specific conditions have to be seriously taken into account when designing tendering systems Berlin, Thank you for your attention! Henning Dettmer, CEO Bundesverband WindEnergie e.v. Neustädtische Kirchstraße Berlin Johannes Schiel, Manager Wind Energy VDMA Power Systems Friedrichstraße Berlin T +49 (0)30 / F +49 (0)30 / h.dettmer@wind-energie.de T +49 (0)30 / F +49 (0)30 / johannes.schiel@vdma.org wind.vdma.org Berlin,
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