1. Facilitator Developing an Industry - Wind Energy in Germany Maria Hoeft, German WindEnergy Association (BWE) 23 November 2015, Ho Chi Minh City

2. Absender | Titel | TT.MM.JJJJ | Page 2 Facilitator 1.BWE at a Glance 2.Status of Wind Energy and Industry in Germany 3.The Renewable Energy Act (EEG) 4.Outlook Agenda

3. Absender | Titel | TT.MM.JJJJ | Page 3 Facilitator German Wind Energy Association (BWE) at a Glance

4. Absender | Titel | TT.MM.JJJJ | Page 4 Facilitator About the BWE One of the largest associations in the field of renewable energies (more than 20,000 members) Political work on national/federal and regional level Partner of 1,100 companies (manufacturers, suppliers, project planners and experts) and of 2,200 operating companies Member of other associations and committees on international level (EWEA, EREF, GWEP and WWEA)

5. Absender | Titel | TT.MM.JJJJ | Page 5 Facilitator Regional Associations 13 federal state associations and 41 regional associations Intensive networking, consultancy and local support Regional exchange between economy and politics Parliamentary events Source: BWE

6. Absender | Titel | TT.MM.JJJJ | Page 6 Facilitator Committees and Working Groups Committees Experience and know how Investment Operator and operator forums Plant management Financing Manufacturers and suppliers Law Planning Expert Site review Science Working Group Special issues Aviation obstruction markers Foundations Radar Public relations Nature conservation & wind energy Grids Rotor blade Continued operation of WTG's Market transformation Forum of Operators Forum independent maintenance Enercon NEG-Micon Nordex Senvion Siemens Wind Power Vestas Source: BWE

7. Absender | Titel | TT.MM.JJJJ | Page 7 Facilitator Status of Wind Energy and Industry in Germany

8. Absender | Titel | TT.MM.JJJJ | Page 8 Facilitator Wind Energy Deployment in Germany 201320141/2015 Total installed capacity in MW33,72939,16539,208.94 New installed capacity in MW2,9984,914.811,185.49 Number of WEP (cumulated)23,64525,12525,152 Repowering (decommissioned) in MW257364.3592.28 Repowering (newly erected) in MW766 1,148119.4 New installed WEP (gross)1,1451,908443 Energy production by wind in bn kWh51,756* Share of wind energy in electricity consumption8,69,7* Source: Deutsche WindGuard, 2014 | BMWI, 2015 | AG Energiebilanzen e.V., 2014 | * based on provisional data

9. Absender | Titel | TT.MM.JJJJ | Page 9 Facilitator Annual installed capacity in MW (gross/without Repowering) Wind Energy Deployment in Germany Source: Deutsche WindGuard, 2012 – 2014 | DEWI 2009 - 2011

10. Absender | Titel | TT.MM.JJJJ | Page 10 Facilitator Technology Development Average WEP configuration in kW Source: Deutsche WindGuard, 2012 – 2014 | DEWI 2009 - 2011

11. Absender | Titel | TT.MM.JJJJ | Page 11 Facilitator Technology Development Development of WEP configuration Source: BWE

12. Absender | Titel | TT.MM.JJJJ | Page 12 Facilitator Technology Development Repowering – Less wind energy turbines produce more electricity Source: BWE Due to extensive research and development, wind turbine technology has made an enormous leap forward in recent years. A single wind turbine in the newest performance class can supply up to 4,800 three-person households with clean power.

13. Absender | Titel | TT.MM.JJJJ | Page 13 Facilitator Wind Energy Deployment in Germany Total installed capacity in MW and WEP 2014 Source: DEWI, 2011 | Deutsche WindGuard, 2014

14. Absender | Titel | TT.MM.JJJJ | Page 14 Facilitator Technology Development Repowering – Less wind energy turbines produce more electricity Source: BWE Due to extensive research and development, wind turbine technology has made an enormous leap forward in recent years. A single wind turbine in the newest performance class can supply up to 4,800 three-person households with clean power.

15. Absender | Titel | TT.MM.JJJJ | Page 15 Facilitator Costs of Wind Energy Development Investment costs per kW in 2012 Source: Deutsche WindGuard, 2013 WEP (main investment costs) Foundation Grid Access Development Planning Others

16. Absender | Titel | TT.MM.JJJJ | Page 16 Facilitator Costs of Wind Energy Development Development of main investment costs in €/kW Source: Deutsche WindGuard, 2013

17. Absender | Titel | TT.MM.JJJJ | Page 17 Facilitator Costs of Wind Energy Development Development of additional investment costs in €/kW Source: Deutsche WindGuard, 2013 FoundationGrid accessDevelopment Planning TotalOthers

18. Absender | Titel | TT.MM.JJJJ | Page 18 Facilitator Levelized Electricity Generation Costs 2012 Source: Deutsche WindGuard, 2013 Levelized electricity costs in €/MWh Levelized remuneration 2014 incl. SDL-bonus in €/MWh Levelized remuneration 2014 without SDL-bonus in €/MWh €/MWh

19. Absender | Titel | TT.MM.JJJJ | Page 19 Facilitator Socio-economic Costs Source: Forum Ökologisch-Soziale Marktwirtschaft e.V. (FÖS), 2012/13, https://www.wind- energie.de/sites/default/files/download/publication/full-costs-power-generation/bwe_greenpeacestudie_engl_02- 2013_final.pdf https://www.wind- energie.de/sites/default/files/download/publication/full-costs-power-generation/bwe_greenpeacestudie_engl_02- 2013_final.pdf External costs of nuclear energy Not internalised external costs State support with budget effects (A+B) Electricity price (spot market/EEG tariff)

20. Absender | Titel | TT.MM.JJJJ | Page 20 Facilitator Wind Industry in Germany Employment, investment, added value and export

21. Absender | Titel | TT.MM.JJJJ | Page 21 Facilitator Employment in Renewable Energies Source: GWS 2014 and 2011/2012

22. Absender | Titel | TT.MM.JJJJ | Page 22 Facilitator Added Value Wind Energy Onshore 2012 Source: DIW Econ, 2014

23. Absender | Titel | TT.MM.JJJJ | Page 23 Facilitator Added Value Wind Energy Onshore 2012 Source: DIW Econ, 2014

24. Absender | Titel | TT.MM.JJJJ | Page 24 Facilitator Investment in Wind Energy Source: Deutsche WindGuard, 2012 – 2014 | DEWI 2009 – 2011 | ‘Global Trends in Renewable Energy Investment 2015’ Report (GTR) Worldwide and in Germany in bn EUR

25. Absender | Titel | TT.MM.JJJJ | Page 25 Facilitator Export Shares of German OEMs Source: DEWI 2011 | Deutsche WindGuard, 2013 Export rate and domestic use in percent

26. Absender | Titel | TT.MM.JJJJ | Page 26 Facilitator Success by reliability Renewable Energy Act (EEG)

27. Absender | Titel | TT.MM.JJJJ | Page 27 Facilitator The Evolution of the EEG 1991 Electricity Feed-in Law (Stromeinspeisegesetz) 1997 Amendment of the Building Code – WEP qualify as privileged building projects 1998Kyoto Protocol – 21% CO2 reductions 1998German Energy Industry Act (EnWG) – power market liberalisation (implementation of European legislation) 2000 Renewable Energy Act (EEG) – priority dispatch 2002Nuclear Energy Act – reducing dependence on nuclear power 2004 1 st amendment of the EEG 2005 European Emissions Trading System (ETS) 2009 2 nd amendment of the EEG – FiT’s, binding targets (implementation European legislation, 20-20-20 targets) 2010/11 “Energy Concept” – nuclear phase out by 2022 2012 3 rd amendment of the EEG – reference yield model 2014 4 th amendment of the EEG – market integration 2015 Electricity Market 2.0 – making markets fit for RES, RES fit for markets

28. Absender | Titel | TT.MM.JJJJ | Page 28 Facilitator Key Aspects of the EEG until 2014 Fixed remuneration for fed-in electricity (for 20 years) Guaranteed grid access Priority feed-in  successful instrument for the implementation of renewable energies

29. Absender | Titel | TT.MM.JJJJ | Page 29 Facilitator The EEG Mechanism Source: BWE RES generator grid operator consumer

30. Absender | Titel | TT.MM.JJJJ | Page 30 Facilitator EEG 2014 – What has been changed? Source: BWE Amendments compared to the EEG 2012 Amendments Grid connection, technical/operational provisions „Green electricity privilege“ Reduction of the support level Initial rate, basic rate of remuneration, reference yield Trajectory and „flexible cap“ Mandatory direct marketing Exceptional FiT Support reduction in case of negative prices for six consecutive hours Remote controlling Plant register Key-date regulation Tendering Remains Service bonus for old plants (start of operation before 1 January 2009) Feed-in management Hardship clause Opportunity for pro-rata direct marketing Cancelled Service bonus for new installations Repowering-Bonus for new installations Management premium for new installations „Green electricity privilege“

31. Absender | Titel | TT.MM.JJJJ | Page 31 Facilitator Remuneration Wind Energy Onshore Source: BWE Initial & basic remuneration, reference yield starting 2014 EEG 2012 Initial remuneration: 8.93 ct/kWh Basic remuneration: 4.87 ct/kWh Reference yield: 5 (site ≥ 150 %) to 20 years (site ≤ 82.5 %) initial tariff Calculation of duration: linear EEG 2014 Initial remuneration: 8.9 ct/kWh Basic remuneration: 4.95 ct/kWh Reference yield: 5 (site ≥ 130 %) to 20 years (site ≤ 80 %) initial tariff Calculation of duration: not linear

32. Absender | Titel | TT.MM.JJJJ | Page 32 Facilitator Remuneration Wind Energy Onshore Source: BWE Degression after 2014 EEG 2012 1.5 % starting 2013 EEG 2014 Aspirated degression 0.4 % per quarter (starting 2016) „flexible cap“ Determines degression Publishing of the quarterly tariff: 5 months in advance (respectively) Reference period for tariff calculation: 12 calender months before

33. Absender | Titel | TT.MM.JJJJ | Page 33 Facilitator Direct Marketing NEW: Mandatory direct marketing from 1 August 2014 Feed-in-tariff for small wind turbines and as emergency option for direct marketing plants only Financial support via market premium § Source: EEG, BWE

34. Absender | Titel | TT.MM.JJJJ | Page 34 Facilitator Negative Prices NEW: Reduction of support in case of negative prices from 1 January 2016 § In case of negative market prices for six consecutive hours, support prospects reduce to zero excemption: WEPs with an installed capacity of < 3MW or WEPs starting operation before 1 January 2016 Source: EEG, BWE

35. Absender | Titel | TT.MM.JJJJ | Page 35 Facilitator Wind Energy Share in EEG Surcharge

36. Absender | Titel | TT.MM.JJJJ | Page 36 Facilitator Development of Surcharge and Market Price EEG surcharge Market price Ct./kWh Source: CLENS, TSO, BEE, 2015

37. Absender | Titel | TT.MM.JJJJ | Page 37 Facilitator Development of Household Electricity Prices

38. Absender | Titel | TT.MM.JJJJ | Page 38 Facilitator Outlook

39. Absender | Titel | TT.MM.JJJJ | Page 39 Facilitator German Renewable Energy Targets Reduction of emissions compared to 1990 40 percent until 2020 80 – 95 percent until 2050 Share of renewable energies in total energy consumption 18 percent until 2020 Share of renewable energies in gross electricity consumption 35 percent until 2020 40 – 45 percent until 2025 55 – 60 percent until 2035 Source: EEG

40. Absender | Titel | TT.MM.JJJJ | Page 40 Facilitator Status Quo Share of renewable and wind energy in final energy consumption in percent Source: AG Energiebilanzen, 2015

41. Absender | Titel | TT.MM.JJJJ | Page 41 Facilitator Future Prospects 2017 EEG 2000 ? Tendering What will the future bring? Source: BWE EEG 2012 EEG 2014 2012 2014 2016 Obligatory direct marketing

42. Facilitator Questions? Thank you for your attention! Bundesverband WindEnergie e.V.T +49 (0)30 / 21 23 41 - 246 Neustädtische Kirchstraße 6F +49 (0)30 / 21 23 41 - 410 10117 Berlinm.hoeft@wind-energie.de www.wind-energie.de