Status of the German Wind Energy Market and Prospects for the Future Claudia Grotz German WindEnergy Association (BWE) EWEC 2007 in Milan, Italy

German wind market Overview on the current political and on the market situation

Wind Energy in Germany – data 2006 Installed capacity20,622 MW Turbines18,685 Electricity generation30.5 billion kWh Share in gross electricity consumption 5.5% Employment73,800 Turnover9.25 billion Euro Export rate62 %

Current share of RES and Wind energy in German energy sector Current RES share in primary energy consumption: 5.3 % (2006) Electricity sector: Original German target: 12.5 % share of RES electricity until 2010; target will be reached in 2007 Currently 11.8 % share = 72.7 TWh (end 2006) Wind power: 5.5 % share in gross electricity consumption

Political background Current RES target(s) in electricity sector: 27 % by 2020 (BMU-Leitstudie 2007) (beginning 2007) „More than 27%“ Government declaration on Climate Protection (26th April) 25 % by 2020 (Spokesmen for Environment of the Federal States branches of the Conservative Party (CDU/CSU) (March 2007) Conservative party (CDU) planned general programme: 30 % RES electricity until 2020 (24th April 2007) 35 % by 2020 (Renewable Energy Associations) Political atmosphere positive towards RES – IPCC reports, debate on energy dependency, German EU-presidency-fight for binding RES targets at EU-level until 2020 (…)

German wind market Future challenges: Repowering

Capacity600 kW2300 kW Rotor blade diameter46 m80 m Hub hight78 m105 m Energy yield1.25 Mio. kWh/a6 Mio. kWh/a Full load hours2,000 h/a3,000 h/a Average turbine: Increase in capacity and efficiency: Development of turbine technology

Status of Repowering projects in 2006: 235 turbines repowered ( replaced by 109 turbines) = decrease of 54 % MW replaced by 258 MW = increase of 210 % Barriers – economical reasons and building restrictions Repowering bonus and regulations in current EEG not sufficient Hight restrictions and distance recommendations do not allow to harvest full potential Status of and Barriers for Repowering today

Effect of hight restriction: Same turbine, less energy yield! Total hight100 m140 m Capacity2000 kW Rotor blade diameter80 m Hub hight60 m100 m Energy yield4.4 Mio. kWh/a6 Mio. kWh/a Full load hours2,200 h/a3,000 h/a

On the same – not always the identical - area: Half the number of turbines 2-fold increase of capacity 3-fold increase of electricity generation At the same time: Reduced rotation time Increase of full load hours by 50 % improved grid compatibility Calculation – rule of thumb for Repowering

Target until 2020: Accumulated capacity on new and designated area:ca. 30,000 MW Repowering:ca. 15,000 MW ca. 45,000 MW Electricity generation: about 110 billion kWh/a (2.500 full load hours) = 20% of German electricity consumption Potential wind energy onshore until 2020 – provided repowering takes off

Before Wind farm Simonsberg (Schleswig-Holstein) After

German wind market Future challenges: Offshore development

2,9 Mrd. Euro 2,1 Mrd. Euro Status 15 projects currently licensed in German North Sea (including 4 cable connections) and 4 projects in Baltic Sea with total capacity of about 5,000 MW 3 “near-shore” turbines installed (4.5 MW, 2.0 MW and 2.5 MW) No building decision for any project yet First German offshore wind farm: test site with 12 offshore turbines (60 MW) at Borkum West site in the North Sea (6 turbines REpower 5 M and 6 turbines Multibrid M5000); operation expected 2009 Offshore wind – current status and projections Target German Ministry of the Environment / BMU: 1,500 MW until ,000 – 25,000 MW until 2030

2,9 Mrd. Euro 2,1 Mrd. Euro Grid connection represents a substantial part of offshore windfarms capital cost (up to 30 %) New Infrastructure Planning Acceleration Act (end 2006): obligation for transmission system operators (TSOs) to bear costs for connecting offshore wind farms to the mainland grid Intention is also to channel the cables underground: connections to offshore wind farms will be shared by a number of projects New law only applies for offshore plants that will be constructed prior to 31st December 2011 Negotiations with TSOs and project planners have started. Speed of implementation? Tariff: discussion about postponing planned degression of tariffs (planned for 2008) New German offshore grid regulation

German wind market Future challenges: Grid integration

Production management already applied in some regions – grid expansion needs to happen more speedy Grid operators are obliged to expand grid In the meantime: demand for optimised use of grid, consideration of application of underground cable Example for optimised grid use through overhead-line monitoring: Depending on ambient temperature and wind speed increase of transmission capacity up to 50 % Only temperature: 1 % capacity per degree (ambient temperature / Celsius) Grid integration – current issues

Thank your for your attention! Claudia Grotz German WindEnergy Association (BWE) Marienstraße D Berlin Tel.: +49 / (0) Fax: +49 / (0) mailto: