1. Wind Power in Germany Kai Schlegelmilch German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety Division: Hydropower, Wind Energy, Grid Integration Berlin, Germany Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 1/19

2. Structure of primary energy consumption in Germany in 2007 Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 24th June 2008 2/19

3. Contribution of renewable energy sources to energy supply in Germany 2000 - 2007 Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 3/19

4. Renewable energy sources as a share of energy supply in Germany from 1998 - 2007 Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 24th June 2008 4/19

5. Source: BMU according to AGEE-Stat; all figures provisional This adds up to almost 15% of Germany’s greenhouse gas emissions. Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 5/19

6. Saved costs due to increasing share of wind power External costs of environmental damages from e.g. coal power plants External costs of radioactive damages (extraction, operation of plants and waste disposal) Reduced costs of the general electricity price due to wind power coming in when demand is high – since it costs only 9.02 Euro-Cent/kWh (merit-order-effect) This is often cheaper than the price on the electricity exchange trading place - for Ontario it is the IESO (Independent Electricity System Operator) In Germany the merit-order-effect amounted to 5 billion Euro p.a. reduced Bill for households and industry Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 6/19

7. Employees in the renewable energy sources sector in Germany Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 7/19

8. Renewable Energy Sources Act (Feed-In-Tariff = FIT(s) for the Future) Priority connections to grid systems for such plants Electricity generated in this way to be purchased and transmitted as a priority Feed-in-tariffs have to be paid by the grid owner guaranteed for 20 years Only for newly installed plants fees are decreased to reflect cost reductions due to the economies of scale and technological progress Nationwide equalisation of additional costs for renewables = UNIQUE: PERFECT investment certainty for 20 years! Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 8/19

9. Role of the Ministry for the Environment in Germany Task/Responsibility sharing within the German Government In many governments: Ministry of Economic Affairs in charge of energy politics The same in Germany until end of 2002 End 2002: BMU/MoE took over the responsibility at least for all renewable energy sources Ever since we have become the drivers of success and determine the speed of increase of renewables Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 9/19

10. Role of the BMU/MoE (II) All measures and aspects including all legal and economic and administrative instruments: –Renewable Energy Sources Act (EEG): EEG 2004 and EEG 2009 –Market introduction –Grid integration Renewables –Evaluation of economic/environmental aspects –Monitoring –Statistics –Supporting Research –Environmental and nature conservational aspects –Offshore windparks Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 24th June 2008 10/19

11. Enercon E-112Repower 5MMultibrid M5000 Installed power4.5 - 6 MW5 MW Hub height124 m120 m102,6 m Rotor diameter114 m126 m116 m Swept Area 10,207 m²12,469 m²10,568 m² Cutting-edge Technology in Wind Energy Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 11/19

12. Development of Energy Supply from Wind Energy Implementation of the "100 MW Wind Programme" (since 1991: "250 MW Wind") Entry into force of the Electricity Feed Act (StrEG*) Entry into force of the EEG** * Act on the Sale of Electricity to the Grid ** Renewable Energy Sources Act Entry into force of the revised EEG** Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 12/19

13. Future Development of Wind Energy until 2020 Onshore –Repowering: replacement of older wind turbines by modern ones –min. 23,600 MW estimated Offshore –first offshore wind farms in 2008 –especially “testing field” in North Sea (≥ 12 x 5 MW) –min. 12,000 MW estimated –according to Offshore-Strategy of German Government 20,000-25,000 MW in 2025-2030 Total –min. 35,600 MW estimated –around 85 TWh generated Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 13/19

14. EEG - possible Prospects Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 14/19

15. Get FIT for the future: Revised FIT for D! FIT standing not only for the fitness of governance and society, but also for the Feed-in-tariff-systems: Revision of the German FIT to enter into force in 2009, adopted by Parliament on 06.06.2008 Two major elements for wind following our political priorities: 1.Repowering 2.Offshore To attract investors (valid from 2009): Onshore: (from now 8.03 to) 9.2 Euro-Cents (decreased by 1% every year for new installations). Repowering: Increased feed in tariff of 0.5 Euro-Cent/kWh for substitution of at least 10 years old plants, if new capacity is at least a twofold and maximum a fivefold increase. Offshore: 13+2 (until end 2015) – more if further out than 12 sea miles and the deeper the site is located Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 15/19

16. Grid-concerns Grid shortages on 110 kV level –Loss of cash flow up to 15 % (North Germany) Future grid shortages on 380 kV level –Grid study by German Energy Agency (dena-I, 2005) –Follow-up study planned (dena-II) Planning of grid connection Bundling of transmission systems Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 24th June 2008 16/19

17. Optimization of grid integration Overhead lines: seasonal standards and/or temperature monitoring New storage systems (e.g. compressed air energy storage power plants) Improved forecast of load and wind generation Better feed-in management Establishment of an intraday market Demand side management Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 24th June 2008 17/19

18. Acceleration of grid enforcement Problem: Long approval process for overhead lines Solution: Law for acceleration of infrastructure projects, entered into force by end of 2006 –Shortening of administrative procedures –Optimization of involvement of stakeholders –Possibility for underground cables in sensitive areas and cost forwarding to consumers –Allowing for bundling of connections by defining the grid in the sea as public (saves up to 15% of costs) Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 24th June 2008 18/19

19. Generation management Motivation: –Grid shortages on 110 kV level –Improvement of existing rules for generation management Solution: –Incentivise better feed-in management by according technologies through an bonus on top of feed-in tariffs in the review of the Renewable Energy Sources Act (comes into force 2009) Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 19/19

20. Thank you for your attention! Kai.Schlegelmilch@bmu.bund.de www.bmu.de www.erneuerbare-energien.de www.feed-in-cooperation.org Wind Power in Germany – Kai Schlegelmilch WWEC 2008 in Kingston/Canada, 25th June 2008 20/19