WindEurope Bulletin June 2017

WindEurope Bulletin

WindEurope Bulletin June 2017

31 May 2017

Giles Dickson

CEO Foreword

Dear member,

Five days left until the offshore wind industry comes together in London at Offshore Wind Energy 2017. From 6 to 8 June, the world’s largest offshore wind energy gathering will focus on how we can secure volumes that power our future. The theme of the conference is “all aboard”, and if you have not done so already, I would urge you to register here so you can take part.

Offshore Wind Energy 2017 marks the start of an eventful month. On 15 June, our industry celebrates Global Wind Day and the world’s first 500 GW of installed wind capacity. Numerous events will let the public discover the power of wind and remind governments of the need to increase the level of policy ambition. On Global Wind Day, we will also announce the winners of this year’s photo competition in the three categories: wind and nature, wind works and wind at sea. 262 photographers from 53 countries submitted more than 700 pictures.

The third week of June sees the European Sustainable Energy Week in Brussels (19-25 June), and I would like to draw your attention to three sessions co-organised by WindEurope. On 20 June there is an ETIPWind event from 14:30-16:30. On 21 June the IDEAS industry platform, of which we are a member, runs an event on flexible energy markets. And also on 21 June MEPs and CEOs will debate how Europe should support renewables post-2020 to further the energy transition. The nature of public financial support for renewables is a big policy issue right now following the recent auction results in the Netherlands, Denmark, Spain and Germany.

On 29 June, we hold our Annual General Assembly and first ever WindEurope Open Day in Brussels. This video gives you a glimpse of what you can expect from the Open Day. It’s a great chance to find out more about the Association and how we can support what you do. I encourage you to register here. The Open Day will also include a visit to the European Parliament in the afternoon, followed by our summer reception in the evening.

I look forward to seeing you. All aboard!

News

Onshore wind auctions in Spain and Germany confirm cost reduction trend

Onshore wind auctions in Spain and Germany confirm cost reduction trend
2017 is the year where auctioning becomes the norm for onshore wind in Europe. The cost reduction trend that we’ve seen in offshore tenders since mid-2016 has been reinforced in the first two big onshore tenders this year – Germany and Spain.

The first onshore wind tender in Germany, under the reformed “EEG” renewable energy law, awarded 807 MW at an average price of EUR 57.1/MWh according to results announced on 19 May 2017.

Of the 70 successful bids, 65 came from community projects, confirming the key role of citizens in the German energy transition model. The encouraging results showed the German wind sector is successfully handling the transition to the auctioning system, with a key role for community projects.

The German results were announced 2 days after the 3 GW renewable energy tender in Spain where wind claimed nearly all the volumes awarded after a 3-year market paralysis. The auction yielded the maximum discount rate allowed under the Spanish tendering system.

The tender results in Germany and Spain cannot be compared as they are the result of two very different auction designs. The Spanish system is unique in the EU in that it requires bidders to make a discount on the investment cost of a reference plant. It then applies marginal pricing where the cheapest bid determines the uniform price for all winners.

In Germany, the pay-as-bid mechanism grants bidders the prices they have offered until the overall tender volume is met. The German system offers a guaranteed price for 20 years. The Spanish system offers less revenue stability – investors are exposed to changes in retribution levels which the Government applies every three years. The first revision in the systems’ parameters is set for 2019.

Germany set an example of how EU Member States should manage the transition towards competitive auctions. Technology-specific tenders providing revenue stabilisation are best suited to deploy wind energy cost-effectively. A clear schedule and deployment volumes, such as those outlined by the German EEG, are also crucial to investment decisions.

WindEurope is working with influential Members of the European parliament and leading national governments to ensure these principles for tender design are included in legislation. This would allow investors to bank on a predictable regulatory framework and deliver on the EU’s 2030 renewable energy target at the most competitive cost.

Members’ successes

Construction of German Merkur wind farm started from Eemshaven

Preparations are in full flow for constructing the next wind park in which Eemshaven plays a major logistical role. The Merkur offshore wind farm – owned by Merkur Offshore GmbH – covers a total area of 47 km² and will be one of the largest wind-turbine parks in Germany. It has a capacity of 396 MW and will be situated north-east of Schiermonnikoog. The project represents an investment of 1.6 billion Euro. GE Renewable Energy Offshore Wind will supply the wind turbines for this park and will take care of its maintenance over the next 15 years.

GE will be positioning 66 Haliade 6 MW offshore wind turbines and the construction, as well as the operation & maintenance, will be organised from Eemshaven. GeoSea is the general contractor for engineering, construction and installation of the foundations, the offshore substation and the internal array grid. Offshore transport of the wind turbine generators is also included. The entire project is to be completed by the end of 2018.

Events

The Corporate PPA event: RE-Source 2017 Connecting renewable energy buyers and sellers

Europe’s leading event on corporate sourcing of renewable energy.

This event will bring together a range of multinational corporations, renewable energy developers and senior decision-makers to raise awareness, exchange information and facilitate connections in order to rapidly increase the procurement of renewable power.

When: 11 October 2017
Where: Wiltcher’s Steigenberger, Brussels

For more information on this exciting event and the topics covered, visit resource-event.eu.

Find out more about RE-Source 2017