Wind energy in Germany – current market situation and future perspectives

21,164 wind turbines with a total capacity of 25,777 MW were installed in Germany altogether by the end of 2009. 38.0 TWh of wind electricity were generated in 2009. These are 7 % of Germany’s net electricity consumption.
In 2009, German manufacturers and suppliers contributed to nearly 30 per cent of the total worldwide turnover of 22.1 billion euros. The export quota was at about 80 per cent in 2009. Together with installation, operation and maintenance services, the wind industry achieved a turnover of more than 8 billion euros. The sector employs close to 100,000 people.

The EEG – basis of success for German wind energy
An early feed-in law for wind electricity was introduced in Germany in 1991. The Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz / EEG) came into force in 2000. Since then, under EEG regulations electricity produced from renewable energy sources is given priority for grid connection, grid access in either distribution and transmission grid, and power dispatch. Grid operators are obliged to feed in electricity produced from renewable energy and buy it at a minimum price within their supply area. The regulation also introduced a German-wide scheme to equalise these costs incurred by grid operators, as the amount of energy from renewables being fed into the system differs in the various regions. The law was amended in 2008.
For wind energy, an ‘initial tariff’ is fixed (for each case) for at least 5 and up to 20 years. It is reduced to a ‘basic tariff’ depending on how local wind conditions compare to a so-called ‘reference yield’. Wind installations on very good sites (reference yield of 150%) receive the initial tariff for five years whilst turbines on less ideal sites can receive it for longer. The tariffs are paid for a maximum of 20 years.

As of 1 January 2009, the initial tariff for onshore wind energy was increased to 9.2 cents/kWh and the basic tariff set at 5.02 cents/kWh. There is an annual degression of 1% for new installations every year. The tariff for offshore wind energy was increased to 13 cents/kWh, with the addition of an extra ‘sprinter bonus’ of 2 cents/kWh for projects which come into operation before the end of 2015. The initial 15 cents/kWh will be paid for a period of 12 years. After that, the tariff will decrease to 3.5 cents/kWh. Offshore tariffs will decrease at 5% annually for new installations starting from 2015.
Grid operators are obliged to accept electricity produced from renewable energy sources and buy it at a minimum price within their supply area. Furthermore, the new German Renewable Energy Sources Act (EEG) requires grid operators not only to extend the existing grid, but also to optimise and enhance it. Failure to comply with this can lead to claims for damages by anyone willing but unable to feed in to the grid.

Grafik: Wind energy in Germany - political milestones


In addition, a bonus for improved grid compatibility (system service bonus) was introduced for new turbines. This allows for 0.5 cents/kWh to be paid on top of the initial remuneration. The new bonus will become operational in July 2010.

A special tariff (repowering bonus) was retained for replacing turbines that are ten years old or older with some that have at least double the rated capacity. These need to be sited in the same or neighbouring administrative district. This has already led to a small but visible increase in repowering projects during 2009.

The possibility of switching between EEG payments and direct marketing is now regulated. Entry and exit of operators that want to sell their production on the electricity market is possible on a monthly basis. Better marketing conditions are also available for electricity producers whose portfolio contains a share of over 50% of renewable energy.
Grid operators are obliged to feed in electricity produced from renewable energy and buy it at a minimum price within their supply area. Furthermore, the new EEG requires grid operators not only to extend the existing grid, but also to optimise and enhance it. Failure to comply with this can lead to claims for damages by anyone willing (but unable) to feed in.