威力彩玩法

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11 Sep 2017, 00:00
Benjamin Wehrmann

Booming German wind power sector fears 2019 cliff

Wind power lobby groups say new funding rules are resulting in unrealistically low compensation, squeezing wind farm operators and turbine manufacturers, while measures to help citizen-owned projects compete in the sector are being abused. The industry fears projects will be delayed or even cancelled -- threatening jobs, as well as Germany鈥檚 renewable energy targets.

On Tuesday, one of the world鈥檚 biggest wind industry fairs opens in Husum in the state of聽Schleswig-Holstein, which produces much of the country's wind power.

Germany itself has long been an important location for the industry. But this year, it鈥檚 under pressure.

鈥淭he situation in the wind power industry is coming to a head much quicker than we feared,鈥 trade union IG Metall recently said in a press release.

IG asked dozens of turbine manufacturers and their suppliers about their business prospects. 40 percent expected market conditions to deteriorate in the near future.

The German Wind Energy Association (BWE) says companies now have to rely entirely on existing orders, and that 鈥渁 reliable projection for expansion over the next years is scarcely possible.鈥

The sector鈥檚 most important lobby group argues this not only threatens jobs but also聽puts Germany鈥檚 targets for expanding renewable power production in jeopardy.

Wind power has been a key pillar of Germany鈥檚 ongoing transition from a fossil fuel- and nuclear-powered economy to one that runs renewable energy. In 2016, the country generated 29 percent of electricity from renewables, including close to 12 percent from wind.

Support for this development has been provided through the country鈥檚 Renewable Energy Act (EEG), which has been reformed to reduce costs. The new EEG has ditched automatic feed-in tariffs for all renewable power fed onto the grid, in favour of an auction system where a set volume of new onshore wind capacity is awarded to tenders offering the lowest price per kilowatt-hour.聽

Germany saw 10 percent more new wind power capacity go online in the first half of 2017 than over the same period last year. But industry representatives say the new system is putting the brakes on growth. They fear a slump in the sector when the first projects awarded through the auctions are slated for construction in 2019.

Phony citizens鈥 projects?

The biggest concern is a set of special provisions for citizens鈥 energy projects, which have聽secured the bulk of new capacity聽in the first two rounds of bidding.

To allow citizen-owned energy cooperatives -- key to developing Germany鈥檚 renewables sector thus far -- to compete with larger corporate and institutional bidders, the law says that citizens鈥 projects do not have to聽obtain a building license聽under Germany鈥檚 Immission Protection Law () before bidding.聽

They also have 54 months to implement successful tenders, compared to the 30 months given to larger bidders.

But critics say these provisions are being abused. Around half of successful bids in the first two rounds of auctions are associated with a single company, project developer UKA from Saxony. UKA聽聽says it merely provides technical and legal assistance聽to citizens鈥 projects, but聽critics claim it is exploiting the advantages granted to smaller bidders聽by setting up pseudo-citizens鈥 projects managed under a single umbrella.

鈥淭he auction mechanism is increasingly becoming a farce,鈥 Stefan Gs盲nger of the World Wind Energy Association (WEEA) told 威力彩玩法. 鈥淣obody is satisfied, and it has far from achieved its original aim.鈥澛

 威力彩玩法.

Gs盲nger says a lax definition of citizens鈥 projects has enabled larger bidders to secure a substantial chuck of the tendered volume for themselves, while no truly citizen-led initiative was granted a licence through the second auction. 鈥淭here鈥檚 a great deal of frustration in the citizens鈥 energy scene,鈥 Gs盲nger says.

The government has reacted by suspending the special provisions for cooperative for next auction, in 2018, while it investigates the issue.聽Gs盲nger called this 鈥渁 panic reaction鈥, which shows that 鈥渢he entire process was not very well thought through鈥. He sees little hope of the law being significantly amended before Germany鈥檚 new government takes office, following the聽24 September general elections聽and ensuing weeks, or even months, of聽coalition talks.

And the rules for cooperatives are not the industry鈥檚 only concern.

Gs盲nger says the second auction鈥檚 average winning bid, of 4.28 eurocents per kilowatt-hour, or around 60 percent of the feed-in tariff granted in 2014, is more in line with countries with far better wind conditions.

鈥淭he bids we鈥檝e seen come with a high degree of speculation,鈥 Gs盲nger says. He argues that bidders are speculating on falling turbine prices over the four and half years they have to implement their projects, meaning it is not even clear what kind of technology they will utlimately use.

Expansion volume could drop to a quarter of 2016 level

Dirk Briese of market research company Windresearch shares the WEEA鈥檚 scepticism. 鈥淢any project developers say that implementing a wind farm at this rate is not economically viable, at least not in the short run,鈥 he says.

Briese argues that bids like those offering zero support in Germany鈥檚 first offshore auctions聽earlier this year show that operators are planning to implement their projects at 鈥渢he very end of the time frame鈥, betting on both falling turbine prices and rising electricity prices.

It鈥檚 not even clear, Briese says, that many of these projects will be granted a building license under the BImschG at all. Which could mean Germany gets far less wind power capacity than it鈥檚 banking on -- bad news for the expansion of green power, and bad news for the manufacturers that supply the technology.

According to Windresearch鈥檚 analysis, a worst-case scenario would see just 1,000 mega-watts (MW) of new capacity in 2019, compared to the 2,800 MW set by the EEG and auctioned off. That鈥檚 less than a quarter of the onshore wind power capacity added in 2016.

More realistically, Briese says, Germany can probably expect to gain 2,500 MW of new wind power capacity in 2019. And he admits that current job cuts and plant closures at important German manufacturers like聽狈辞谤诲别虫听辞谤听厂别苍惫颈辞苍听are only indirectly influenced by the auction results.聽

Others argue that auctioning off a set volume of new capacity is the wrong approach in any case. By setting a cap, BWE head Hermann Albers says Germany is slowing down its transition to renewable power and damaging the sector's international competitiveness. 鈥淲e need a strong domestic market that secures our export success,鈥 he told 威力彩玩法.

Still, Briese, argues the auctions鈥 aim of reducing costs is important, and that higher expansion targets would undermine the whole system, which should end the brokering between politicians and industry over support rates. 鈥淣ow they argue over expansion volumes. That鈥檚 essentially the same,鈥 Briese said.聽

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