Politics of Wind

The Renewable Energy Sources Act (EEG)

The legal framework provided by the Electricity Feed Act (StreG)1991 and thereafter by the Renewable Energy Sources Act (EEG) 2000 has been a decisive factor in the success of the wind industry and for the major increase in the implementation of wind energy on land. The EEG which has since been amended in 2004 and 2009- , implements the EU Directive on the Promotion of Renewable Energies. The Act promotes more efficient conditions for the feed-in, transfer, and payment of electric power from renewable sources. In turn, this has spurred the efficient adaptation of technological development.

The purpose of the EEG is to increase the share of the renewable energies in the electricity generation to at least 30 % by 2020. The EEG stipulates compensation for electric-power generation from renewable energy sources in the domestic electricity market. Grid operators must purchase electricity from renewable sources as a priority. Degressive tariffs have assisted in advancing the development of efficient and economical technologies. A principle aim of the EGG is to improve the efficiency of feed-in, transfer of payments, and technological adaptation for renewable energy sources.

The EGG provides wind farm developers and turbine manufacturers with a solid basis for calculated planning by guaranteeing the economic viability of wind energy facilities. The resulting growth and continued development with wind technology have enabled ongoing technical progress, ultimately achieving an economy of scale. Cost reductions, technological innovations and synergetic effects have increased economic viability even further.

Reimbursement for Offshore Wind Farms

A specific ordinance in the amendment of the Renewable Energy Sources Act as came into effect in January 2009 provides reimbursement for electricity from offshore wind farms (s. figures below).

In order to promote early construction of wind energy, the Renewable Energy Sources Act establishes a starting reimbursement higher than that of the base reimbursement, the details of which are outlined below. The starting reimbursement may be extended under specific circumstances for offshore wind development, based on the hardship involved with project actualization as distance from the coast and water depth.. After this period of the higher starting reimbursement the payment goes down to the level of base reimbursement.

In order to foster the development of efficient and cost effective technologies the starting reimbursement decreases by 5% annually for wind energy turbines that are installed after 2015.

Note that offshore development is in part defined as being constructed at least three nautical miles seaward from the coast.

Reimbursement according to the EEG 2009:

• Starting reimbursement = €0.13/kWh for first 12 years)
• Every wind energy plant which is in use before 01.01.2016 gains an extra bonus of €0.02/kWh (so-called sprinter bonus)
• The period of 12 years for the starting reimbursement will be extended according to distance from the coast and water depth:
  - 0.5 month for every nautical mile over an initial coast-distance from 12 nautical miles
  - 1.7 months for every meter over an initial water-depth from 20 meters
• Base reimbursement = €0.035/kWh
• Decrease of the starting reimbursement by 5% for new wind farms constructed after 2015

Presentation of the Reimbursment for Offshore Wind Farms (EEG)

(enlarge the graphs by clicking on them)