The new German Renewable Energy Sources Act (EEG) - new advanced regulation for grid extension, grid integration and feed-in management

Hermann Albers German WindEnergy Association (BWE)EWEC 2009Marseille, France

German wind energy market -

Overview on the current situation…

… and prospects until 2020

Wind energy in Germany end 2008

Source: DEWI/BWE, 2009

2008 2007

Total installed capacity 23,903 Megawatt 22,247 Megawatt

Newly installed capacity 1,665 Megawatt 1,667 Megawatt

Number of turbines 20,301 19,460

New turbines in one year 866 883

Electricity generation from wind powerShare in gross electricity consumption (basis 2007: 617.5 TWh)

40.43 bln. kWh6.6 %

39.50 bln. kWh6.4 %

Potential annual energy yieldShare in gross electricity consumption (basis 2007: 617.5 TWh)

43.01 bln. kWh7.0 %

39.98 bln. kWh6.5 %

CO2 emissions avoided 34.61 mio. tons 33.81 mio. tons

2020: wind power will cover 25 % of gross electricity consumption

2020 Electricity mix – Renewables secure 47% of supply

The German Renewable Energy Sources Act (EEG) –

Amendments from 1st January 2009

…good basis for achieving targets

EEG 2009: Higher Remuneration for new turbines onshore and offshore since 1rst January 2009, lower rate of degression

Onshore (§ 29) Offshore (§31)

•Initial remuneration (2009): 9.20 ct/kWh•Basic remuneration (2009): 5.02 ct/kWh•Degression: 1% p.a.•Not linked to producer price index

•Initial remuneration (2009): 13 ct/kWh•Sprinter bonus on top of initial remuneration: 2 ct/kWh if commissioned before 31 Dec. 2015•Basic remuneration (2009): 3.50 ct/kWh•Degression: 5% p.a. from 2015

Additional bonus for improved grid compatibility - SDL Bonus for new turbines: 0.5 ct/kWh on top of the initial remuneration; old turbines: 0.7 ct/kWh for limited period

Repowering : Bonus payable on top of the initial remuneration

amounting to 0.50 ct/kWh

First step remuneration

Basic remuneration

EEG 2009: Recompensation onshore wind – additional boni

EEG 2009: Grid extension and optimisationNew rules for curtailment

Grid extension and losses

NEW: Grid operators are not only obliged to extend the grid, but also to optimise and enhance the existing grid. NEW: Failure to comply can lead to claims for losses by anyone willing (but unable) to feed in. (§ 9, § 10)

Curtailment

NEW: Turbines need to be equipped for remote reduction of supply and monitoring of actual supply (1/4-h). NEW: Grid operators pay financial compensation based on agreements.NEW: Grid operators are charged with optimising feed-in management.

EEG 2009: Direct marketing and improved integration through system integration bonus

NEW: Direct marketing: §17Entry and exit on a monthly basis

NEW: Decree to be completed on system integration

Additional information: www.eeg-aktuell.de

What else is needed

Commissioning of new sites and administrative barriers – Federal States and regional planning authorities to improve framework conditions

Regional planning: commissioning of new sites needed for new and for repowering capacity

Example of Federal State of Brandenburg:

New „Energy Strategy 2020“:

Current capacity: 3,767 MW (end 2008)

Capacity 2020: 7,500 MW

= about 55 PJ wind electricity until 2020

Planning for new sites for wind energy development:

Today: 371 sqkm

2020: 555 sqkm

= increase of 50 %!

Total hight 100 m 170 m 170 m

Capacity 2000 kW 2000 kW 2000 kW

Rotor diameter 80 m 90 m 90 m

Hub hight 60 m 125 m 125 m

Generation 4.4 Mio. kWh/a 6.5 Mio. kWh/a 8 - 10 Mio. kWh/a

Full load hours 2,200 h/a 3,250 h/a 4 - 5,000 h/a

Efficiency: Federal States to reconsider distanceregulations and hightrestrictions

Coastal site:

The future: smart grid development

Up to 2 Mio. carsuntil 2020

Hermann AlbersPresidentGerman Wind Energy Association (BWE)Marienstraße 19-20D - 10117 BerlinTel.: +49 / (0)30 - 28482-106Fax: +49 / (0)30 - 28482-107mailto: h.albers@bwe-vorstand.dewww.wind-energie.de