Wind power in Germany
General
For renewable electricity, the Renewable Energy Sources Act (Erneuerbare Energien Gesetz, EEG) came into operation on April 1st, 2000 and was revised in 2004, 2009 and amended in 2010 (by the Act of 11 August 2010 - Federal Law Gazette I p. 1170). It ensured independent power producers, either individuals or companies, to be able to deliver power to the electricity grid: grid operators were obliged to accept this power and to pay fixed tariffs to the producers: feed-in tariffs. The Act was revised in the year 2004 (August 1st, adopted on July 21st, 2004). For the year 2009 new amendments were made to the Act (adopted on June 6th, 2008). A feed-in tariff is guaranteed for 20 years for most technologies (for hydroelectric power installations with a capacity of over 5 megawatts a 15-year period applies). In order to compensate for technology learning effects (through economies of scale and efficient production and conversion) the tariff is each year decreased with a certain percentage.
Degression rate: The tariffs refer to installations commissioned on or after 1 January 2009. As a rule, tariffs for installations commissioned after 2009 are lowered on 1 January of each following year by a fixed percentage (degression rate). Numbers are to be rounded to the second digit after the decimal point. The degression rate is calculated on the basis of the previous year's unrounded value.
Regarding renewable heating and cooling, the Bundestag adopted on 6 June 2008 a law on the promotion of renewable energies in the heat sector (Erneuerbare Energien Wärmegesetz, known as EEWärmeG). This law, which will take effect on January 1st 2009, obliges the owners of new buildings to cover a part of their heating needs from renewable energy. The law recognises solar energy, biomass, geothermal energy and ambient air heat. The obligatory part depends on the type of renewable energies used in the building. It is 15% for solar energy, 30% for biogas and 50% for all the others. Among these other renewables, biomass fuels (firewood, pellets, chips, etc.) can only be used in high-yield boilers that comply with air quality legislation. The owners can, if they so desire, combine several different sources of energy. A solar collector can in this way be completed by a wood pellet burning boiler. The EEGWärmeG law does not only consist of obligations. It also reinforces the program of development of the renewable energies market in allotting it €500 million per year up to 2012.
For biofuels, a law on biofuels (Biokraftstoffquotengesetz) came into force on 1st January 2007, consisting of a partial taxation associated with a quota policy.
On November 7th 2007, the renewable energy law was evaluated and judged pertinent by the German Parliament. This evaluation is based on indicators of installed capacity, on the number of tons of CO2 prevented and on the creation of jobs. The Parliament’s report also recommended increasing the share of renewable electricity to 27% in 2010. The report also called on the adjustment of the feed-in tariff of certain technologies including onshore and offshore wind power.
According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Germany is 18% (in the year 2005 the share was 5.8%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.
Renewable energy projections according to the National Renewable Energy Action Plan for Germany
The National Renewable Energy Action Plan (NREAP) for Germany was submitted in August 2010. The target according to Annex I of Directive 2009/28/EC is 18% for the year 2020 and the projected NREAP share in that year is 19.6%. According to the projection, the most important contribution in the year 2020 is expected from biomass (renewable heating and cooling) (11355 ktoe, 29% of all renewable energy). Second important contribution is expected from wind power (104.4 TWh or 8980 ktoe, 23% of all renewable energy). The third largest contribution is from biodiesel (renewable transport) (4443 ktoe, 12% of all renewable energy). Wind power contributes with 45.8 GW (104.4 TWh) in the year 2020 (onshore wind 35.8 GW and 72.7 TWh, offshore wind 10.0 GW and 31.8 TWh). For solar photovoltaic the 2020 contribution is projected to be 51.8 GW (41.4 TWh). For solar thermal the 2020 contribution is projected to be 1245 ktoe. The two most important biofuels are projected to contribute 4443 ktoe (biodiesel) and 857 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 24.6 TWh (2113 ktoe) and for biogas it is expected to be 23.4 TWh (2015 ktoe). The consumption of renewable heat is expected to amount to 8952 ktoe for solid biomass and 1692 ktoe for biogas.
Renewable Electricity: wind power
Regarding wind power, some important changes have occured through the EEG update which became operational on January 1st, 2009. Firstly, the initial fee, which is valid for the first five years of operation, increased to 9.2 eurocent/kWh (previously less than 8 eurocent/kWh). The final fee has been slightly increased to 5.02 eurocent/kWh. The annual reduction for installations built in later years has been defined as 1% over the previous 2% per year, meaning that the tarif is reduced more slowly. New feature of the 2009 EEG is that wind turbines should be able to provide system services to the electricity grid (Verordnung zu Systemdienstleistungen durch Windenergieanlagen). The initial fee for new turbines has been increased with 0.5 eurocent/kWh for the first five years of operation. In case existing turbines are equipped with the system services equipment, a bonus of 0.7 eurocent/kWh can be obtained (provided that the equipment is operational before 2011). Another new feature of the 2009 EEG update is also an additional bonus for repowering, i.e. the replacement of old turbines by new ones (a capacity doubling is required, up to maximum five times the initial power).
The new EEG has also other requirements, such as remote-control of the turbine. Additionally, the priority dispatch as it existed under the EEG 2004 has been altered: electricity from PV and wind power will be dispatched as a function of demand. Also, combined heat and power installations from fossil fuels have received priority dispatch alike renewables. Furthermore, conditions for grid integration have bcome more favourable for operators of wind parks. Optimising and reinforcing the grid has become an obligation for the grid operator, and compensation payment can be demanded in case or failure.
Also offshore wind power benefits from tarif increases. The initial fee increased to 13 eurocent/kWh (previously less than 9 eurocent/kWh). The final fee has been reduced to 3.5 eurocent/kWh. Offshore turbines built before 2016 receive an additional bonus of 2 eurocent/kWh. The annual reduction for installations built after 2015 has been defined as 5% over the previous 2% per year, meaning that the tarif is ruduced much faster than before (though overall, the tariff is higher in the first years to come).
Onshore wind energy
For onshore wind turbines installed before 2005, the base price according to the EEG 2004 is 5.5 eurocent/kWh for the duration of installation life. An additional 3.2 eurocent/kWh is applied for 5 years (a period that can be extended under certain conditions). For the year 2006, the feed-in tariff was 8.4 c€/kWh for the first five years and 5.3 c€/kWh for year 6 up to year 20. For the year 2007, the feed-in tariff was 8.2 c€/kWh for the first five years and 5.2 c€/kWh for year 6 up to year 20. For the year 2008, the feed-in tariff was 8.0 c€/kWh for the first five years and 5.1 c€/kWh for year 6 up to year 20.
Degression rate: 1.0%, duration of tariff payment: 20 years.
For the corresponding year of commissioning the following tariffs are applied:
For 2009:
Initial tariff : 9.20 ct/kW
Basic tariff : 5.02 ct/kW
System services bonus : 0.50 ct/kW
Repowering bonus : 0.50 ct/kW
For 2010:
Initial tariff: 9.11 ct/kW
Basic tariff : 4.97 ct/kW
System services bonus: 0.50 ct/kW
Repowering bonus: 0.50 ct/kW
For 2011:
Initial tariff : 9.02ct/kW
Basic tariff : 4.92 ct/kW
System services bonus: 0.49ct/kW
Repowering bonus: 0.49ct/kW
For 2012:
Initial tariff : 8.93ct/kW
Basic tariff : 4.87 ct/kW
System services bonus: 0.49 ct/kW
Repowering bonus: 0.49ct/kW
Offshore Wind Energy
For offshore wind turbines installed before 2008, the base price was 6.19 c€/kWh for the duration of installation life. An additional 2.91 c€/kWh was applied for 12 years (a period that could be extended under certain conditions) for wind turbines commissioned before 31 December 2010. For the year 2008, the feed-in tariff was 8.9 c€/kWh for the first twelve years and 6.1 c€/kWh for year 6 up to year 20.
Degression rate until 2014: 0.0%; from 2015: 5%; duration of tariff payment: 20 years
For 2009 - 2014:
Initial tariff : 13 ct/kWh
Early bird bonus: 2 ct/kWh
Basic tariff: 3,5 ct/kWh
2015:
Initial tariff : 12.35 ct/kWh
Early bird bonus: 1.9 ct/kWh
Basic tariff: 3,3 ct/kWh
Grid-connected wind turbines without prior performance attestation (a minimum of 60% of reference production) and those located in protected areas are ineligible for the purchase prices.
Future programme changes expected
The EEG will remain the major RE support instrument over the coming years in Germany, also for wind power.
Regular revision of the act : According to the governing Coalition Treaty between CDU/CSU and FDP and in order to reach the installation targets on the one hand and to avoid promotional excess on the other hand, the compensation scheme will be revised and, if necessary, adjusted depending on technological progress and market development. The next revision is set for the end of 2011. Additional testing is to take place in 3-year cycles (peviously 4 years). A draft of the progress report is prepepared in the first quarter of 2011 by the Environment ministry (BMU). This progress report forms the basis of the legislative process for the EEG 2012. The re-novellation of the EEG is due to be finalized by the end of 2011.
Sources
Bundesministerium für Umwelt, Naturschutz und Reaktorsicherheit (BMU) -"Renewable Energy Sources Act of 25 October 2008 (Federal Law Gazette I p. 2074) as last amended by the Act of 11 August 2010 (Federal Law Gazette I p. 1170)" http://www.erneuerbare-energien.de/files/english/pdf/application/pdf/eeg_2009_en_bf.pdf
(sourced January 2011).
Bundesministerium für Umwelt, Naturschutz und Reaktorsicherheit (BMU) - Tariffs and sample degression rates pursuant to the new Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz - EEG) as of 25 October 2008 with amendments of 11. August 2010. http://www.erneuerbare-energien.de/files/english/pdf/application/pdf/eeg_2009_verguetungsdegression_en_bf.pdf (sourced January 2011)
(including sample calculations for the different technologies)
EEG Aktuell http://www.eeg-aktuell.de (Latest changes to the EEG, and download section, mostly in German)
Bundesministerium für Umwelt, Naturschutz und Reaktorsicherheit (BMU) - Renewable Energy Sources Act (EEG) Progress Report 2007 (2009 progress report due in mid 2011) http://www.erneuerbare-energien.de/files/english/pdf/application/pdf/erfahrungsbericht_eeg_2007_zf_en.pdf
Bundesministerium für Umwelt, Naturschutz und Reaktorsicherheit (BMU), The Renewable Energies Heat Act in brief, http://www.erneuerbare-energien.de/files/pdfs/allgemein/application/pdf/ee_waermegesetz_fragen_en.pdf (sourced January 2009)
Bundesministerium für Umwelt, Naturschutz und Reaktorsicherheit (BMU), List of English documents concerning the renewable energies sector 16th legislative term, http://www.erneuerbare-energien.de/inhalt/3860/ (sourced January 2011)
EurObserv'ER Wind Energy Barometer, http://www.eurobserv-er.org/pdf/baro189.asp, February 2009
EurObserv'ER Wind Energy Barometer, http://www.eurobserv-er.org/pdf/baro195.asp, February 2010
EurObserv'ER Wind Energy Barometer, http://www.eurobserv-er.org, February 2011
Bundesverband WindEnergie e.V., Husum WindEnergy 2008, Neue EEG-Regelungen ab 2009, http://www.wind-energie.de (sourced January 2009)
Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources, http://ec.europa.eu/energy/renewables/transparency_platform_en.htm
Vergleich der EEG-Vergütungsregelungen für 2009, http://www.erneuerbare-energien.de/files/pdfs/allgemein/application/pdf/eeg_verguetungsregelungen.pdf (sourced January 2010)
The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)
Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)