1. Wind Power Market in EuropeCumulative wind power installations in the EU (GW)100949084.68075.17064.76056.55048.04034.440.53023.128.520102.5 3.5 220.127.116.112.917.31995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Annual onshore and offshore installations (MW)10,000582883 8668,000933183736,0004,000451170259907,5268,201 7,9359,9298,764 8,7502,0004,3775,7435,2035,7496,1142001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011OnshoreOffshore
Evolution of national markets• Status of national support schemesEvolution ofsupportschemesStable/positiveevolutionUncertaintyParalysedMaturemarketsGermanyDenmarkIrelandUKItalyNetherlandsSpainPortugal2 nd wave EmergingmarketsSwedenBelgiumAustriaGreeceFranceFinlandRomaniaTurkeyPolandEstoniaLatviaBulgariaCzech RepHungary
Paralysed markets in Southern and Eastern Europe• Economic crisis in Southern Europe: Governments focus on controllingcosts– Spain• Moratorium on development• New tax on electricity generation– Portugal• Moratorium on development• Industry-Government agreement– No retroactive changes– Voluntary contribution from developers• Retroactive changes and barriers in Central/Eastern Europe– Bulgaria• Three changes to Feed-in tariff since 2011• Grid access charge targeting renewables– Hungary• No new grid connection permit since 2007• Compliance with internal market rules– France• Government sued over support scheme• ECJ case, market slowed down
Uncertainty in 2 nd wave markets• United Kingdom• Disagreement within ruling coalition on onshore wind• Challenging transition to Contracts for Difference• Major issues relevant to European discussion• Capacity payments• Support to nuclear• Italy• Move to Dutch auction scheme• Ceiling for support to projects above 5 MW• Speedy implementation• Netherlands• Cost-oriented SDE+ scheme led to end of support for offshore• New government could be more proactive• Poland• Uncertain timetable for draft legislation• Changes would have implications for existing farms• Greece• Support scheme similar to French Feed-in tariff
Positive developments• Stability in mature Northern markets– Denmark• Ambitious targets• Modernized feed-in premium helps limit costs with consent of the industry– Germany• Introduction of optional feed-in premium welcomed by the sector– UK• Good prospects for offshore – significant pipeline– Objective of 18 GW for 2020• Stabilized schemes in certain emerging markets– Norway-Sweden• Joint tradable green certificate system– Finland• Feed-in tariff– Romania• EU approval of tradable green certificate system• Strong political will– Belgium (Wallonia), Turkey, Austria
Quota obligationFeed-in tariffFeed-in premiumOther instrumentsNotes:1)The patterned colours represent a combinationof instruments2)Investment grants, tax exemptions, and fiscalincentives are not included in this pictureunless they serve as the main supportinstrumentSwedenFinlandEstoniaDenmarkLithuaniaLatviaIrelandUK´BelgiumFranceNetherlandsLuxembourgGermanyPolandCzech RepublikSlovakiaAustriaHungarySIRomaniaItalyBulgariaPortugalSpainMaltaGreeceGRCyprus
Commission communication on support mechanisms• Non-binding communication – early 2013– Analyse current systems• Single out non objective elements• Improve consistency and compatibility between national systems• Flexibility to adapt to changing market conditions• Lower support to reflect lower costs– Reform of mechanisms• No stop-go policies• No retroactive changes– Future of support• Increased exposure to market risk• Commission favour a feed-in premium or certificate model• Linked to review of State aids rules– Compliant schemes could benefit from speedy approval byEuropean Commission (DG Competition).
Latest wind energy scenarios for EU-27450 (GW)400400350300250200(GW total installedcapacity)2222131992302482353242802631501441431491411008685845002010 2015 2020 2025 2030EC 2009 NREAPs IEA 2010 EWEA 2011Source: EWEA, European Commission, International Energy Agency, National Renewable Energy Action Plans.