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Powering Europe - European Wind Energy Association

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analysis<br />

fiGURE 9: EnDoGEnoUs inVEstMEnts foR DiffEREnt sCEnaRios Until 2020<br />

150<br />

Investment capacities [1000 MWe]<br />

45<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

Austria<br />

Belgium<br />

Czech<br />

Different effects can be seen in the hydropower-dominated<br />

countries Sweden, Finland and Norway to those<br />

seen in the thermal-based countries on the <strong>Europe</strong>an<br />

continent.<br />

In addition to the extreme price differences for Poland,<br />

Czech Republic, Hungary and Slovakia, as described<br />

above, Figure 8 also indicates that wind energy lowers<br />

the price more in some hydro-based countries, namely<br />

Finland, Sweden, Norway and Portugal. Here, a largescale<br />

implementation of wind power means there is a<br />

greater need for flexible production within the country<br />

rather than for exporting hydro power to deliver balancing<br />

services in neighbouring countries. This means<br />

trade flows from these countries to neighbours are decreased<br />

in the <strong>Wind</strong> scenario (see Figure 13).<br />

Consequently, large-scale wind implementation increases<br />

the incentive to invest in more grid capacity<br />

Denmark<br />

Finland<br />

France<br />

Germany<br />

Hungary<br />

Endogenous investments<br />

Italy<br />

Netherlands<br />

Norway<br />

Poland<br />

Portugal<br />

Slovakia<br />

Slovenia<br />

Spain<br />

Lignite Reference 2020<br />

Lignite WIND 2020<br />

Coal Reference 2020<br />

Coal WIND 2020<br />

Gas Reference 2020<br />

Gas WIND 2020<br />

Sweden<br />

Switserland<br />

i.e. in more interconnection capacity between different<br />

price areas.<br />

Other results<br />

Investments<br />

Large wind power investments supersede the additional<br />

investments in conventional power plants that<br />

would otherwise be needed in order to match power<br />

supply and demand. The types of technologies that<br />

are replaced depend on the investments that would<br />

have been made without the large-scale deployment<br />

of wind power.<br />

Due to an increase in power demand and plans to decommission<br />

some nuclear power plants and old conventional<br />

plants additional investments in conventional<br />

power are expected to be needed.<br />

Estonia<br />

Latvia<br />

Lithuania<br />

UK<br />

<strong>Powering</strong> <strong>Europe</strong>: wind energy and the electricity grid

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