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Justin WilkesPublic Affairs Advisor

European Wind Energy Association

RESTMAC workshopWarsaw 11 October 2007

Achieving the 180 GW of wind power in Europe

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Contents

Achieving the 180 GW of wind power in Europe

•Background to EWEA

•State of play

•Future trends

•Legislative developments

•‘Trading mechanism’

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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.

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Where is the wind energy sector today?

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Where is the wind energy sector today?

Europe has:

•80% global manufacturing share•Annual market value of ~€ 9bn•72% capacity in 2 countries•75,000 jobs•Generates 3% of EU electricity

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EU new capacity installations in 2006

UK8.36%

Austria1.92%

Greece2.27%

Ireland3.29%

Italy5.50%

Netherlands4.69%

Portugal9.15% France

10.68%

Spain20.92%

Germany29.43%

Hungary0.57%

Belgium0.35%

Denmark0.15%

Finland0.05%

Sweden0.82%

Lithuania0.65%

Poland0.91%

Czech Republic0.29%

Cyprus, Estonia, Latvia, Luxembourg, Malta, Slovenia, Slovakia: no new wind power installations in 2006.

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EU capacity installations 1996-2005 (MW)– Is wind energy small scale?

Source: Platts/EWEA

New installed capacity EU-15 1996-2005

0

5.000

10.000

15.000

20.000

25.000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

MW

Nat Gas Wind Coal Fuel Oil Nuclear Large Hydro Biomass Other

In 2006

New gas: 18.5 GW

New wind: 7.5 GW

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Where will the wind energy sector be in the longer term? EWEA forecasts

0

50

100

150

200

250

300

35020

00

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

GW

0

200

400

600

800

1000

1200

TW

h

Onshore TWh Offshore TWh Onshore capacity Offshore capacity

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Recent changes in the EU legal framework

Green Paper on Energy Supply (March 2006)

Strategic Energy Review (January 2007) 20% RE binding target for 2020 (March

2007)

Commission proposal expected 5 December 2007

• The wind energy sector is in a position to substantially contribute to the achievement of the target, with a capacity of at least 180 GW

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Key issues for the wind energy sector now

The 20% target for RES is in principle very positive for the sector, but…

MANY UNCERTAINTIES REMAIN:

• What will the new “framework” legislation look like?

• How to ensure a fair share of the target for each country?

• What tools will Member States use to ensure that the targets are met?

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What the sector needs to achieve the 180 GW (1)

• No uncertainty in the negotiation process

• The new “framework” legislation should maintain key elements of Directive 2001/77/EC. Full re-discussion is not appropriate

• The wind energy sector does not want an EU harmonised payment mechanism at this stage.

• an EU-wide internal electricity market and effective competition must be achieved first.

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What the sector needs to achieve the 180 GW (2)

• Each national plan must contain sector-specific targets that will become compulsory once adopted.

• Interim revisions should take place, but targets should not change easily

• National plans must take into account local resources but should be ambitious in all technologies

• An interim target for 2015 is appropriate

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What the sector needs to achieve the 180 GW (3)

• A more ambitious R&D plan for wind from the EC (8th FP onwards) and the Member States is needed

• Grid building and fair grid access conditions are critical

• Offshore wind requires specific measures, particularly a Commissio Action Plan

• Competitive electricity markets are a pre-requisite for the effective deployment of wind in Europe

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Trade Mechanism - the Main Questions to ask

Will the introduction of trade make it easier for MS to meet their targets cost effectively?

Will trade attract investors and increase their confidence?

What impact will trade have on existing successful mechanisms?

(NB: Trade is a tool, not an end-goal in itself)

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Trade Mechanism - Our Main Concern

• National support schemes• Grid access and strategic grid planning• Planning and administrative procedures• Public acceptance• Costs

How will trading impact national frameworkswith regards to?

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Thank you very much for your attention

THE EUROPEAN WIND ENERGY ASSOCIATION

RENEWABLE ENERGY HOUSE63-65 RUE D’ARLONB-1040 BRUSSELS BELGIUM

T: +32 2 546 1940F: +32 2 546 1944E: ewea@ewea.orgwww.ewea.org

www.ewea.org