The German electricity sector was liberalised in 1998 with a new energy law (Energiewirtschaftsgesetz, EnWG). The German regulation authority for the energy market is the so called Bundesnetzagentur. lt is supposed to guarantee competition in the electricity and gas supply markets. Since the late nineties a number of additional-regulations have come into force to stimulate competition.

The electricity market is divided into the areas of production, transmission and distribution. Four large energy companies - E.ON, RWE, Vattenfall Europe and EnBW dominate the German electricity market. They own over 80 % of the power generating capacity in Germany. Their respective (formally separated) grid operation companies operate the German transmission grid. Access to the grid for third parties is guaranteed by law. In practice, however, grid capacity in a number of regions is limited and expansion is a protracted process.

 

Wind Energy Sector Overview

Installed capacity of wind enrgy (end of 2008): 23'093 MW

 

20'301 wind turbines with a total capacity of 23'903 MW were installed in Germany by the end of 2008. 866 new wind turbines with a total capacity of 1'665 MW were installed in 2008, of which 24 MW repowering and 5 MW offshore turbines. This is a similar result as in 2007 (1'667 MW). 40,4 TWh of wind electricity were generated in 2008. The contribution of wind energy to Germany's electricity net consumption is nowat 7,5 %.

 

National targets: In 2008 the European Council and European Parliament decided an a new overall binding target of 20 % renewable energy share in EU final energy demand until 2020. The official share for Germany will be an increase up to 18 % of renewable energy share in the energy mix by 2020 (up from 8,5 °A) in 2007). The government therefore announced that by 2020 RES shall have a share of at least 30 % in the German electricity mix by 2020. The German Renewable Energy Federation (BEE) has recently published a prognosis for a share of 47 % under positive framework conditions. Wind energy will deliver a very important contribution: According to the estimates of the German Wind Energy Association (BWE) wind could deliver up to 150 TWh per year, which would be a share of 20-25 % of German electricity demand by 2020.

 

Market shares of Wind turbine manufacturers in Germany in 2008:

While there is currently a stabilising tendency in the German market, exports from manufacturers and suppliers in 2008 were again on the rise. In the longer run, it is also expected that the industry will profit from the developing offshore business. The market leading manufacturers in Germany are Enercon and Vestas (see chart).

 

Wind Energy Resource Information

Wind atlases are available at national and at regional levels. A good overview can be gained e.g. with the Renewable Energy Information System (REIS') which is connected to ISET Kassel (Institut für Solare Energie-versorgungstechnik). Information and measurement data are available concerning wind conditions in Germany and on operational results (website see below).

 

Wind Energy Legislation

In January 2009 an amended version of the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz / EEG) came into force. Since 2000 electricity produced from renewable energy sources is given priority for grid connection, grid access in both distribution and transmission grids, and power dispatch under the EEG. This regulation stipulates a fixed feed-in tariff for each kWh of power produced and fed into the grid from renewable sources. The new EEG for wind energy includes higher tariffs for on- and offshore installations, incentives and regulations for improved grid integration technology of turbines as well as stricter obligations for grid operators when it comes to integrating wind power.

 

Currently, the compensation rates for newly installed wind turbines are subject to a nominal annual degression of 1 % (onshore). Degression for the offshore tariff is set at 5 %, but only starting from 2015.

 

An important regulation also is the German Federal Building Code that treats wind energy plants as privileged projects. Local authorities are supposed to designate specific priority zones for wind energy utilisation. This means that they can also restrict building to specific areas. In addition, a number of Federal States have issued recommendations concerning distance of new turbines to settlements and concerning height restrictions. General distance recommendations and height restrictions are a barrier to exploiting the Optimum potential from wind energy.

 

Wind Energy Projects

Installed wind energy capacity per region (2008); source: ISET

 

Planned/Outlook

BWE sees a potential of 45'000 MW wind capacity onshore and an electricity generation of about 110 billion kWh/a until 2020. In addition, 10'000 MW should be installed offshore until that period. Then, the total output from wind electricity will add up to 150 TWh/a.

 

No offshore wind farm is yet in Operation or under construction. However, the first pilot project, the test site "Alpha Ventus" with 60 MW in the North Sea will come into Operation during 2009. In 2008, a 'neer­shore' test turbine of 5 MW capacity was installed by the Bard Group in the North Sea. Most German offshore parks will be erected up to 20-60 km away from the coastline in 20-40 meters water depth. Thus far, the national maritime authority and the Federal States have licensed 23 projects, adding up to an overall capacity of currently over 6'500 MW. The costs for connecting offshore wind farms to the mainland grid are taken over by transmission systems operators (TSOs). TSOs therefore have started to newly plan connection lines for clusters of projects at Sea which is requiring additional time. Up to now only one connection (400 MW HVDC light) is under construction.

 

With the new offshore-tariffs in place the government wants to compensate for increasing building and operation cost as well as high risk expectations by investors, banks and assurance companies, at least concerning bigger projects in the North Sea. Different to the German onshore market, the offshore market is dominated by bigger players from side of the energy utilities as investors.

 

References

• German Wind Energy Association (BWE): vvww.wind-energie.de
• German Renewable Energy Federation (BEE): www.bee-ev.de
• Overview on policies and support programmes of the Ministry of Environment and various information on RE in Germany under www.erneuerbare-energien.de, also version of the Renewable Energy Sources Act (EEG) in several languages.
• Energy data in general can be obtained from the Ministry of Economics: www.bmwi.de; there is also a website on renewable technology for export from BMWI: http://www.german-renewable-energy.com/
• Renewable Energy Information System REISI: http://reisi.iset.uni-kassel.de
• German Wind Energy Institute (DEWI): www.dewi.de
• On the site of VDN up to date data can be found on electricity generated from renewable energy sources, www.bdew.de/bdew.nsf/id/DE_EEG­Monatsprognosen?open
• Feed-in cooperation (with German participation and more information on feed-in systems): www.feed-in-cooperation.org

World Wind Energy Association 2009 | Claudia Grotz 2009

Claudia Grotz | Head of Policy and Public Relations German Wind Energy Association (BWE) Berlin, Germany

E-Mail: c.grotz@wind-energie.de | www.wind-energie.de