German Auction Design 'Is Killing Wind Sector'
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PRODUCED BY RECHARGE OFFICIAL SHOW DAILY DAY TWO Hans-Dieter German auction design Kettwig and fellow event ambassadors speaking with ‘is killing wind sector’ WindEurope boss Giles Dickson on stage yesterday BERND RADOWITZ in Germany — but very soon at this moment is not so easy,” Kettwig ermany must lift its annual added, referring to the difficult path 2.9GW cap on onshore to form a new government after Ginstallations and repair flaws three-way coalition talks between in its tendering system to avert major Chancellor Angela Merkel’s CDU, the damage to the wind industry, leading liberal FDP and the Greens failed. executives told the WindEurope The annual cap on new 2017 conference yesterday. installations managed by the Europe’s largest wind market tendering system is particularly will lose more than 2.5GW in damaging due to exceptions for installations in the coming two to community wind groups, which three years as a result of a change don’t need to provide a sound in 2017 to tenders from a previous emission permit when bidding, and feed-in tariff, said Enercon managing get two years longer than commercial Recharge yesterday, pointing out — unlike commercial developers. director Hans-Dieter Kettwig. developers to build their wind that almost all of the winning bids “There is no penalty that really Germany must boost its annual projects. in Germany’s most recent onshore hurts if a project is not built,” CONTINUED on Page 2 Benjamin Brolet/WindEurope onshore auction volume beyond “The design of the German tender were from community groups. | 2.9GW from next year, “otherwise auctioning system really kills the These organizations do not have to the industry has a tough situation”, wind industry,” Holger Koschorz, start construction on their projects VISIT RECHARGE he told delegates. vice-president for public affairs at for two or three years and suffer little at Stand 2B28 Photograph Photograph “Politicians must react very soon wind turbine maker Senvion, told consequence if they never get built GE Renewable Energy NOT JUST WIND POWER, WIND EMPOWERMENT Visit Us at Booth 1B40 renew.ge/wind RECHARGE | **** ***** |**** ***** ****** N149 / 4.0- 4.5 MAXIMUM FLEXIBILITY. MAXIMUM YIELDS. With its large rotor blade, the N149 / 4.0-4.5 optimises yields at sites where light winds predominate. It can be individually adapted to grid requirements, wind conditions, topography and sound-level specifica- tions. The turbine has been designed on the basis of the successful Delta platform – meaning many intelligent steps for our development teams, and a giant step for your investment. The 4 MW class: Delta4000. – Up to 28% higher yield – Site-specific operating modes from 4.0 to 4.5 MW – Hub heights up to 164 metres – Max. 103.6 dB(A) at 4 MW nominal output ›› More information at www.nordex-online.com The POWER PACKAGE for successful projects 2 rechargenews.com EU Parliament backs ambitious 35%-by-2030 renewables goal N149 / 4.0- 4.5 CHRISTOPHER HOPSON MAXIMUM FLEXIBILITY. The European Parliament yesterday voted to back a binding EU target of at least 35% MAXIMUM YIELDS. renewables in its energy mix by 2030, in a move applauded by the With its large rotor blade, the N149 / 4.0-4.5 optimises yields at sites wind industry and others. where light winds predominate. It can be individually adapted to grid The vote by the parliament’s industry and energy committee requirements, wind conditions, topography and sound-level specifica- sees the EU’s elected members tions. The turbine has been designed on the basis of the successful Delta take a far more ambitious stance platform – meaning many intelligent steps for our development teams, than the European Commission, A prototype of a the bloc’s executive arm, which and a giant step for your investment. The 4 MW class: Delta4000. Siemens Gamesa 8MW turbine has proposed a 27% goal. The parliament also backed – Up to 28% higher yield measures that would require – Site-specific operating modes from 4.0 to 4.5 MW policymakers to set out in detail – Hub heights up to 164 metres their support plans for renewables Vattenfall picks Siemens Gamesa over a five-year period. – Max. 103.6 dB(A) at 4 MW nominal output “Visibility on deployment volumes to 2030 also remains ›› More information at www.nordex-online.com for largest ever offshore order crucial to sustain wind energy’s contribution to the EU economy,” ANDREW LEE the 605MW Kriegers Flak with a operational in 2021 — will use said WindEurope chief executive record-low €49.90/MWh bid, with 72 turbines, with 41 earmarked Giles Dickson. The POWER PACKAGE iemens Gamesa will Vesterhav Syd and Nord — with for the twin North Sea projects, “In this light it’s very good the for successful projects supply up to 955MW of up to 350MW between them — which will enter service a year committee adopted a five-year Sits 8MW turbines to three coming in at €61/MWh. earlier. Between them, they will upfront schedule for public Danish offshore wind farms after Vattenfall said the combined power one million Danish homes. support to renewables. developer Vattenfall placed the turbine supply deal — which also The deal is a welcome boost for “Knowing what the volume, largest ever order in the sector. covers installation and servicing Spain-based Siemens Gamesa, timing and budget of renewable The manufacturer will equip — is a key element of the cost which has been under commercial auctions is going to be will help the Swedish utility’s Kriegers equation. pressure since the merger of the the industry plan its investments Flak wind farm in the Baltic Sea, “A combined purchase gives us former Siemens Wind business — in the supply chain. It secures and the Vesterhav Syd and Nord a lower price, which means that the offshore sector’s frontrunner economies of scale and brings North Sea projects. construction costs for offshore — and Gamesa. down costs.” Vattenfall will spend almost wind power can be further The company says it will supply The lack of specific, binding €1.7bn building the projects, reduced. Vattenfall will naturally its new 8MW machine, which it targets for EU member states among the largest investments it take these cost levels into other unveiled yesterday (see page 8), to is seen by many as one of the has made in renewable energy to markets,” said the company’s head the Vattenfall projects, as well as key weaknesses of the proposals date. of wind power, Gunnar Groebler. to Ørsted’s 752MW Borssele 1&2 currently on the table from the The Swedish utility in 2016 won Kriegers Flak — due to be fully project off the Netherlands. Commission. The parliament’s vote is non- binding on the Commission and all eyes now turn to an 18 December meeting of the Energy German tenders do not offer ‘fair competition’ Council, made up of the energy ministers of EU states. FROM Front Page Without a clear political said, pointing to the more than There are already signs that the Koschorz said. “There is no fair commitment, Europe’s leadership 260,000 jobs the wind sector is Commission may be softening its competition.” in wind power is at risk, providing in Europe now. stance on a higher 2030 target, Siemens Gamesa | According to Koschorz, WindEurope chairman Ivor “In this context, the negotiations with its vice-president for energy community developers are Catto told the opening session on the [European Commission’s] union, Maroš Šefčovič, admitting planning a kind of follow-up yesterday. clean energy package is that steep power price reductions auction among turbine makers to “We are starting to see the importantly entering that final have already made a 30% goal Photography Photography achieve the lowest possible price. growth of jobs stagnating,” he stage.” viable. rechargenews.com 3 RECHARGE | OFFICIAL EVENT DAILY KARL-ERIK STROMSTA ero-subsidy European offshore wind projects Zmay prove to be solid investments, but their risks are too steep for many big potential investors, said Torsten Lodberg Smed, senior partner at Copenhagen Infrastructure Partners (CIP), speaking at the Recharge Thought Leaders roundtable in Amsterdam on Monday. The global offshore wind sector was stunned earlier this year when Orsted (then known as Dong) and utility EnBW won 1.38GW of future German offshore capacity with zero-subsidy bids, prompting the Netherlands to launch its own subsidy-free tender, with bids due next month. Some in the industry are concerned that such subsidy- free projects require an overly Copenhagen optimistic view of future cost Infrastructure reductions, while underestimating Partners’ Torsten Lodberg Smed the risks of projects that may not be on line for nearly a decade. “Generally for Europe, I’m a bit concerned about the viability of everything that’s going on,” Smed said. Zero-subsidy auctions risk putting “We’ve seen zero [subsidy] bids. All I can say is, if these projects end up being purely merchant, off new offshore wind investors I think there will not be a big investor appetite – at least not With the most aggressively Cole, managing director for actually achievements – they’re from many of the investors I priced offshore wind projects not global offshore wind at Iberdrola promises”, Cole notes. “Some of k n ow.” expected on line until the mid- Renewables. the things we talk about with cost CIP has invested in several 2020s, developers are counting As an industry, “some of our reductions are for projects that European offshore wind projects, on substantial advancements biggest achievements are not haven’t yet been built.” including Germany’s recently in turbine size and efficiency completed 402MW Veja Mate, to make the economics pencil Market not yet ready for mega-turbines and is also active in the early- out.