1 Isabel Blanco European Wind Energy Association Policies that can improve the cost effectiveness of wind Milano, EWEC 2007 Cost effectiveness of wind energy

2 What is the European Wind Energy Association? EWEA is the voice of the wind industry, actively promoting the utilisation of wind power in Europe and worldwide for the past 25 years. Resources are focussed on lobbying, communication and policy activities, and responding to enquiries from our member organisations.

3 KEY FACTS: In the past, both technological development and economies of scale have contributed to reducing the cost of wind Energy markets are still far from perfect competence; many externalities remain unsolved. These mainly benefit fossil fuels at the cost of renewable energies Although differences in basic costs of wind are progressively being reduced among countries, prices are still substantially different

4 The role of R&D: R&D still essential in offshore but also in onshore. Upscaling of WT, optimised logistics, advanced materials for blades, power control and conditioning, preventing maintenance, floating concepts, wind resource mapping, advanced wind power forecasting techniques, smartgrid technologies… Policies that increase the availability of R&D funds are fundamental (low levels in comparison with fossil-fuel) Also better co-ordination and knowledge-transfer (TPWind) Economies of scale –enabling policy framework-

5 POLICIES TO REDUCE PRICES (I): Internalisation of externalities (not only environmental) Good functioning of the CO2 markets Adequate project-risk analysis in comparison with other sources Real competition in the electricity market Better planning policies, public permitting (decreased rate of failure) One-stop-shop approach, lower administrative costs

6 POLICIES TO REDUCE PRICES (II): Better access to financial institutions (non-biased information, awareness raising): will reduce interest rates The role of long-term targets and their effects on investor- confidence Long-term contracts for the developer Grid issues: transparency, socialisation of costs Protection of property rights, opening of international markets

7 Thank you for your attention THE EUROPEAN WIND ENERGY ASSOCIATION RENEWABLE ENERGY HOUSE RUE D’ARLON B-1040 BRUSSELS BELGIUM T: F: E: