Eastern winds - Emerging European wind power markets Eastern winds - Emerging European wind power 53520-1212-1005 EWEA www.ewea.org About EWEA EWEA is the voice of the wind industry, actively promoting wind power in Europe and worldwide. It has over 700 members from almost 60 Eastern winds countries, including wind turbine manufacturers with a leading share of the world wind power market, plus component suppliers, research institutes, national wind and renewables associations, developers, Emerging European wind power markets contractors, electricity providers, nance and insurance companies, and ISBN 978-2-930670-03-4 consultants. This combined strength makes EWEA the world’s largest and most powerful wind energy network. Rue d’Arlon 80 | B-1040 Brussels 9 782930 670034 Tel: +32 2 213 18 11 - Fax: +32 2 213 18 90 A report by the European Wind Energy Association - February 2013 E-mail: [email protected] emerging_markets_cover.indd 1 12/12/12 17:48 Eastern winds Emerging European wind power markets a report by the European Wind Energy Association Text and analysis Chapter 1: Mihaela Dragan, Jacopo Moccia and Pierre Tardieu (European Wind Energy Association-EWEA) Chapter 2 to Chapter 5: Honorata Fijalka, Raluca Voinica, Bogdan Belciu, Iulian Circiumaru, Jan Brazda, Martin Dolezal, Michal Miklovic, David Schneider and Michael Sponring (PwC) Revising authors: Christian Kjaer, Maria Tvrdonova, Jacopo Moccia, Justin Wilkes and Julian Scola (EWEA) Revision and editing: Adrienne Margolis, Zoë Casey (EWEA) Design Coordination: Jesús Quesada (EWEA) Design: Giselinde Vandevelde Print: www.artoos.be EWEA has joined a climate neutral printing programme. It makes choices as to what it prints and how, based on environmental criteria. The CO2 emissions of the printing process are then calculated and compensated by green emission allowances purchased from a sustainable project. Published in February 2013 ISBN: 978-2-930670-03-4 AF_Emerging_report.indd 1 12/12/12 17:43 2 Eastern winds - Emerging European wind power markets AF_Emerging_report.indd 2 12/12/12 17:43 Content Executive Summary .......................................................................................................................4 Introduction ....................................................................................................................................8 1 The wind energy market ........................................................................................................ 10 2 Wind energy nancing ............................................................................................................ 20 2.1 Commercial banks ....................................................................................................................... 22 2.2 International Financing Institutions ................................................................................................ 24 2.3 EU nancing and support ..............................................................................................................27 2.4 Support mechanisms in central, eastern and south-eastern countries .............................................29 3 First wave markets ................................................................................................................. 30 3.1 Bulgaria ...................................................................................................................................... 31 3.2 Hungary ...................................................................................................................................... 42 3.3 Poland......................................................................................................................................... 49 3.4 Romania ..................................................................................................................................... 58 3.5 Turkey ......................................................................................................................................... 68 4 Second wave markets ............................................................................................................ 74 4.1 The Czech Republic ......................................................................................................................75 4.2 Croatia ........................................................................................................................................ 81 4.3 Ukraine ....................................................................................................................................... 87 5 Future markets ........................................................................................................................ 96 5.1 Serbia ......................................................................................................................................... 97 5.2 Slovakia .................................................................................................................................... 102 5.3 Slovenia .................................................................................................................................... 106 5.4 Russia ...................................................................................................................................... 111 Eastern winds - Emerging European wind power markets 3 AF_Emerging_report.indd 3 12/12/12 17:44 © Wolf Winter © Wolf EXECUTIVE SUMMARY AF_Emerging_report.indd 4 12/12/12 17:44 Central, eastern and south-eastern Europe is Europe’s • According to the National Renewable Energy Action new wind energy frontier. Signicant growth, opportu- Plans (NREAPs) of the newer Member States, some nity and benets can be expected from and for the 16 GW of wind energy capacity should be grid con- region in the years ahead. This applies equally to cen- nected by 2020 — an increase of 10 GW or 165% tral, eastern and south-eastern European countries compared to 2012. already in the European Union, and those which are applying to join, or could potentially join in the future. • The newer Member States are, with a few key and important exceptions, currently failing to meet their These newly emerged and emerging markets are NREAP targets. not only important in their own right, but they have increased perceived importance given the state of Non-EU European markets wind energy markets elsewhere in Europe. These new markets look set to offset, to a greater or lesser ex- • Beyond the EU’s borders a number of European tent, declines in the near future in some of the more countries are also showing encouraging growth in mature southern European markets. It therefore be- wind energy. EU accession requirements in Croatia, comes all the more important for the European wind and Ukraine’s alignment with EU energy policy, are energy industry that the newly emerged and emerging driving factors behind this. eastern European markets are able to achieve their full potential. • Alignment with EU accession requirements in Serbia are expected to launch the wind energy sector, once The European Union’s newer Member the authorities have sorted out legislative issues. States • Turkey has one of the fastest growing electricity gen- • Installed wind energy capacity in the EU’s newer erating sectors in the world, which is driving large Member States1 increased from 208 MW in 2005 investments in wind energy. A government target of to 4,200 MW by the end of 2011, growing annually 20 GW of installed wind energy capacity by 2023 by 665 MW on average. This growth is in large part has been set. Meeting this target will require adding driven by the EU’s energy policy: indicative 2010 tar- 18 GW of new wind capacity. gets for renewable energy in all Member States2 and binding 2020 targets set by the 2009 renewable en- • While Russia would benet economically and envi- ergy directive3. ronmentally from harnessing its abundant wind re- sources, the government currently shows little inter- • Wind energy development, like the policies and in- est in developing this potential. centives it requires, is diverse across the region. There are as many wind energy markets as there are Financing wind energy in Europe’s Member States. Interestingly, ve of the 12 newer emerging markets Member States (Bulgaria, Czech Republic, Hungary, Poland and Romania) have 88% of the total installed • A number of commercial banks are willing to invest wind energy capacity in the newer Member States. in wind energy projects in central and eastern Eu- rope. However, these countries’ regulatory instabil- • The share of the EU’s annual wind energy installa- ity is a key issue in obtaining nance. tions in the newer Member States has grown from just over 2% in 2005 to 12.5% in 2011. • Banks offer many nancing schemes, but the most common are non-recourse and limited recourse sen- ior loans. Deals are preferred in euros rather than local currency. 1 Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia 2 Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market 3 Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC Eastern winds - Emerging European wind power