1. Energy www.renewables-made-in-germany.com Tobias Cossen Ho Chi Minh, October 29 th 2012 On-Shore Wind Power Good Business for Everyone

2. Agenda Renewables and Business  Market Phases  Advantage for Wind Power Wind Power Sector – An Experience from German Market  History and Status  Public Sector Value Creation  Regional and Local Value Creation  Private Sector Value Creation Summary

3. Renewables and Business Market Phases  Graph represents photovoltaic cycles, nevertheless has similarities to wind power

4. Renewables and Business Market Phases  Markets will develop if (reasonable) incentives and (reasonable!) regulation secure the framework

5. Renewables and Business Advantage for Wind Power  Levelised costs of energy (LCOE) close or below the grid parity  Incentive instruments at a lower cost necessary and high grid penetration  >3.000full load hours available at 365 days per year 24 hours a day (depending on site & turbine) providing energy and grid stabilization services Not possible without a reasonable business model for all involved stakeholders! Source: GWEC

6. Advantage for Wind Power  June 2011: signature of decree for wind Feed-in-Tariff (FiT) in Vietnam The correct first step! Renewables and Business

7. History and Status  Cumulative installed capacity of wind power Wind Power in Germany

8. History and Status  Installed capacity of wind power per year Wind Power in Germany

9. History and Status Political incentive mechanism (=Feed-in-Tariff) was the decisive factor! Wind Power in Germany

10. History and Status An investment vehicle (=FiT) was created, wanted by the population and accepted by the private sector!

11. Wind Power in Germany Public Sector Value Creation  Rural areas offer significant more space as urban centers and have the opportunity to profit when energy systems transits to decentralized generation Rural Area IUrban Area energy consumption Rural Area II energy consumptionEnergy consumption 100% surplus 100% surplus 25% energy flow economical flow

12. Wind Power in Germany Public Sector Value Creation  Energy independence  Low priced energy  Climate protection and sustainability Instead of spending money on imported raw materials, jobs and values are created in the region!

13. Wind Power in Germany Regional Value Creation  Renewable energy and especially wind power brought new perspective and income for the economically challenged eastern provinces  Approx. 100.000 jobs in the German wind industry

14. Wind Power in Germany Local Value Creation  Improved “green” image  Eco tourism  Attractive for “energy tourism”

15. Wind Power in Germany Local Value Creation  Citizens can get involved and participate in wind energy (=citizens wind farm)  Local communities profit from lease payments and tax revenues – and again, jobs

16. Wind Power in Germany Private Sector Value Creation  Revenue of German Wind Turbine Manufacturers  Apart from “classic” industries like automotive and engine construction a new industry was created for an export oriented economy Source: AEEAEE

17. Wind Power in Germany Private Sector Value Creation  Investment in German Wind Turbines and Production Capacities  Apart from “classic” industries like automotive and engine construction a new industry was created for an export oriented economy Source: AEEAEE

18. Side Note – Results of Long Lasting Political and Private Investment in Wind Power  Highest capacity of available wind turbine: ENERCON E-126 rated at 7.5 MW  18.000 MWh yield per year (demand of approx. 20.000 German households) Wind Power in Germany

19. Side Note – Results of Long Lasting Political and Private Investment in Wind Power  ENERTRAG hybrid power plant (hydrogen production by cracking water with wind energy) Wind Power in Germany

20. Side Note – Results of Long Lasting Political and Private Investment in Wind Power  ENERTRAG hybrid power plant (hydrogen production by cracking water with wind energy) Wind Power in Germany

21.  Public sector needs to define “the rules of the game”  Research and development (R&D) by public and private sector  Private sector needs to realize profit margins for innovation and risk investment Summary

22. Last but not Least  Population needs to understand and participate in the value creation! if not: Summary

23. Last but not Least  Population needs to understand and participate in the value creation! if not: Summary

24. Energy Thank you! Tobias Cossen tobias.cossen@giz.de