1. www.igwindkraft.at Development of Wind Power in Austria Importance of Regional Initiatives and Financing Models Stefan Hantsch Dr. Ursula Nährer www.igwindkraft.at

2. IG Windkraft –Austrian Wind Energy Association  founded in 1993  1500 members  all important manufacturers and operators  boardmember of EWEA and EREF www.igwindkraft.at

3. Windpower in Europe Quelle: EWEA End of 2005:  40,500 MW installed  83 billion kWh  annual rate of growth since 1995:32%

4. www.igwindkraft.at new capacity in Europe: Wind is N°2 since 2000 Quelle: EWEA Natural Gas Nuclear Windpower Coal Fuel oil Large Hydro

5. www.igwindkraft.at Casestudy Austria Experts Opinion: No chance for Wind in Austria  small landlocked country 8 Mio. inhabitants 84.000 km² (1% of Brazil)  Experts until the 1990s: “There is no wind in Austria” Three institutions measured wind for more than 100 years www.igwindkraft.at

6. Wind Power in Austria Today: 1.000 MW Wind N°15 in the world There is wind! How could this happen?

7. www.igwindkraft.at Background  High level of consciousness regarding energy  Tradition of producing and using own energy (wood for heating in rural areas)  Important events:  energy crises in 70th and 80th  referendum 1978 rejected an already built nuclear power plant www.igwindkraft.at

8. Solar-Waterheating Do-It-Yourself Initiatives  1985 two men constructed very simple collectors that worked  Do-It-Yourself groups spread over large parts of the country  Today number 3 in the World m²/capita Solar industry has 40% market share in Europe  The process enforced other initiatives www.igwindkraft.at

9. Regional Wind Power Initiatives  Such a group constructed their own wind measurement equipment and found sites as windy as at the coast  (Remember the experts)  Promoted the idea of searching windy sites with simple wind measuring systems www.igwindkraft.at

10. Participation of local Population  New Players Problem: lack of equity capital  Solution: Idea of broad (financial) involvement of local population  Local population becomes co-owner of power plants

11. www.igwindkraft.at Typical Procedure – Example „Windkraft Simonsfeld“  An electrician of a very small town was interested in wind power (1995).  Successful measurements: these people set up a limited company  To raise equity capital set up a corpnership -> Limited Partnership Limited Partnership Corpnership Private limited Company  In 1998 first 2 turbines Investment volume of 1.6 mio.$ Equity capital:150,000 $ from 123 people  he convinced opinion leaders information evening events  Today: 850 People 85 MW Equity capital of 21 mio. $ raised, total investment of 110 mio. $  Together with 20 friends he raised 9,000 $ for wind measurement

12. www.igwindkraft.at  Around 40% of installed wind power are made by participation projects (30% other private investors; 30% utilities)  Investment volume of 650 mio.$, equity capital sum of 125 mio. $  Chance for small companies to keep the pace with utilities or other big investors Economic Impact

13. www.igwindkraft.at  Of utmost importance were efforts of private individuals or small groups  These were the driving forces in the process Conclusions Denmark: Early 20 th century Electrification started with 300 decentralized Wind-Diesel- systems Austria: In the 1980 th Solar Heating Austria In the 1990 th Windpower Denmark: In the 1970 th Modern wind industry started in the workshop of a carpenter

14. www.igwindkraft.at  Most successful approaches were practical and sort of grassroots-developments.  A fecund soil and a local technical capacity for new ideas existed  The involvement of the local population was positive for a good acceptance of the new technologies. Conclusions  Don’t trust experts too much!

15. www.igwindkraft.at  Find or create structures that are of use for motivated people, support and encourage them.  To fight poverty it will not be enough to let the field only to big investors, but to give the population a share of their energy supply.  Financial involvement of the local population was successful in Austria, but there people have money  In regions with poorer population it might be an idea to get a pre-financing and the created new companies earn (a part of) the money back. Sociological Considerations

16. www.igwindkraft.at European experience shows: feed-in tariffs are more effective and efficient What is important for (independent) investors:  Long term investment security  Feed in Tariffs (fixed price for the produced electricity)  Purchase obligation  Guaranteed and regulated grid access Necessary because of the unbalanced situation of grid operators and independent power producers Legal Considerations

17. www.igwindkraft.at Information starts not at University Level www.igwindkraft.at “Wild Wind” : pupils-project: more than 10,000 pupils visited each year

18. www.igwindkraft.at Thank you again for the possibility to visit your wonderful continent! More information: www.igwindkraft.at www.windpower.org www.ewea.org

19. www.igwindkraft.at Why does the EU support Renewable Energy Sources (RES)? dependency - price risk – costs - CO2 www.igwindkraft.at ->EU Renewable Energy Sources Directive 2002 increase the share of electricity from RES from 13 to 20% until 2010

20. www.igwindkraft.at  Tendering Systems  Green certificates  Feed in Tariffs (REFIT)  The producer of green electricity gets a fixed price for the produced electricity for a period of several years (10-20 years)  Purchase obligation: the power is purchased by grid operators or any other institution and then proportionately distributed to power distributors  Guaranteed and regulated grid-access  -> Level playing field Types of support mechanisms

21. www.igwindkraft.at Prices paid for Wind in Europe  EU Komm Report 2005 S.45 www.igwindkraft.at

22. Windpower in Europe Quelle: EWEA Total End 2005: 40,500 MW

23. www.igwindkraft.at European experience shows: feed-in tariffs have proven to be more effective and efficient: What is important for investors:  Long term investment security  Feed in Tariffs  Purchase obligation  Guaranteed Regulated grid access (necessary because of the unbalanced situation) A stable framework provides lower risk and therefore allows cheaper production costs Conclusion support mechanisms

24. www.igwindkraft.at (Independend) Operators of RES need security:  Feed in Tariffs  Purchase obligation  Guaranteed and regulated grid access Legal Considerations