WKNnews
BGZ Fondsverwaltung acquires wind farm companies
19.4 megawatts on top
Page 11
WKN supports VIVA CON AGUA
VIVA CON AGUA – charity in a bottle! Page 6 -7
Private long-term care insurance
State support as of 2013Page 9
The German Renewable Energies Act (EEG) and the electricity price debate
Trying times for renewablesPage 2-3
Thank you!
HusumWindEnergy 2012 Page 8
No. 3 | 2012 | December
H o u s e o f F u t u r e E n e r g i e s
Titelstory
Hermann Albers
Dr Klaus Rave
Interview with wind experts BWE President Hermann Albers and GWEC CEO Dr. Klaus Rave.
Already weeks before the announcement of the so-called EEG levy on renewable energies in mid-October, the energy transition – which was, after all, adopted by the present Federal Government in 2011 – suddenly ap-peared in a completely new light. As the ensuing debate on the increase of electricity tariffs appears to be rela-tively undifferentiated, many German consumers are left with the impression that electricity prices have exploded due to the promotion of renewable energies.
It is undisputable that the energy transition does not come for free. However, in the light of the ongoing price debate, the purpose and value of the mega project, which concerns our society as a whole, are virtually pushed into the background. Instead, proposals seeking, for in-stance, to limit the development of on-shore wind ener-gy are abruptly pushed forward.
Despite the one-sided debate, 93 per cent of the German citizens consider the intensified development of renewa-ble energies as “important” and “extremely important”. This is the upshot of a representative survey that was conducted by the polling institute TNS Infratest on be-half of the Renewable Energy Agency (Agentur für Er-neuerbare Energien) between August and October 2012.
What exactly is going wrong here, Hermann Al-bers?
Hermann Albers:The results of the survey show that the population’s readiness to achieve the turnaround remains high and unbroken. If we look at the coverage of the past months, it becomes clear that the stream of negative reports is obviously part of a campaign against the Renewable Energies Act. However, at this point, I should like to move the focus to the positive results. In the past years, renewable energies have not only reduced emissions in the order of 130 million tons of CO2 equivalents, but also created more than 400,000 jobs - and the number is growing. A new Greenpeace study shows that already with a renewable energies share of 40 per cent, added val-ue can be increased to roughly 16.5 million euros. But indeed, things are not running quite as smoothly yet. Especially in terms of grid development, system stability and market transformation, we are still faced with pret-ty challenging tasks. The industry – and I’m speaking of
the wind industry in particular – has already put forward concrete proposals to the policy makers that we will dis-cuss with all market operators next year. In the political context, we will also pursue the debate on the progress of the German Renewable Energies Act to becoming a feed-in act. As we all well know, the Federal Minister for the Environment has promised to provide legal certainty for the current legislative period, so that we will certainly not fail to present our ideas. Our focus here is to provide security of investments in a sector where mainly small and medium-sized enterprises are at home.
Extended privileges for large industrial users, in-creased burdens on the low-paid – are we confront-ed with a justice gap here, Dr Klaus Rave?
Klaus Rave:Definitely so. The derogations have gone completely off the rails. What was originally supposed to prevent the migration of electricity-intensive big industry has almost turned into an “à-la-carte free-for-all”. However, when we look at the national economy as a whole, electricity costs generally account for 2.5 per cent of the costs – and this fact always goes unmentioned. Hence, the rules must urgently be changed. However, there is another justice gap that concerns generational equity: Today, we can and must invest in the up-front investment costs of renewa-bles, so as to enable our children and grand-children to counter the growing price pressure in energy commodi-ties plus the social pressure of demographic change.
In his procedural proposal for the revision of the Re-newable Energies Act, Federal Minister for the Envi-ronment Peter Altmaier observes that, to a certain extent, renewables are “excessively subsidised” and calls for a moderate adjustment of the development targets. Can you specify what that means?
Hermann Albers:I don’t see that wind farming is excessively subsidised. The increase of the so-called EEG levy is only partially due to the development of renewable energies. As far as actual subsidising costs are concerned, the calculations released by the Federal Association for Renewable Ener-gies BEE show that only 2.26 cents of the expected 5.27 cent EEG levy account for renewable energies in 2013, whereby on-shore wind energy accounts for merely 0.21
cents. However, in the meantime the Federal Minister for the Environment has explicitly distanced himself from his statement. Although renewable electricity already accounts for 25 per cent of the energy mix, three quar-ters of the road to emission-free electricity supply and the independence of the expensive imports of fossil fuels still lie ahead of us. Thus, the debates on limiting devel-opments and imposing caps are clearly heading in the wrong direction. The fact that the Federal Government defines development targets is principally welcome, since it is taking the shape of a master plan. However, in terms of timing, a development target may obvious-ly not precede the national federal requirements plan or imply a covert stoppage or cutback target. For me, “de-velopment targets” mean that the Federal Government’s action should be geared towards the aims of the Länder –and not vice versa. Fortunately, the single German states (Bundesländer) were able to agree on a common corri-dor and also the meeting of the Federal Government and German states held at the Federal Chancellery at the be-ginning of November showed that both stakeholders in principle support the Renewable Energies Act and the energy transition.
In Germany the Renewable Energies Act is current-ly under fire. At the same time it has won broad in-ternational approval. As a worldwide benchmark, it has become a success model “made in Germany”. What is your experience in terms of international comparison?
Klaus Rave:Secured tariffs through long-term PPAs or electricity supply agreements that are governed by statutory pro-visions are the crucial secrets of success for the wind industry. They have truly facilitated our endeavours in some eighty 80 states and made it possible to install more than 1,000 megawatts in over 22 countries. Howev-er, two other essential conditions must be met: Firstly, a well-functioning non-corrupt administration must be in place and, secondly, sufficient borrowing costs must be available. It’s always the political risks that jeopardise our success, not the technology or the wind regime!
Hermann Albers, what action can associations and companies within the sector take in order to not lose sight of the aims of the energy transition in the public debate on the Renewable Energies Act?
Hermann Albers:In the past, we didn’t always put across our message vig-orously enough and thus failed to hush the cacophony of the EEG’s opponents. Associations and companies are therefore being urged all the more to tell the people the truth and put all the figures on the table. And here, we have the stronger arguments, because already today our prices are lower than coal and nuclear energy. If you were to sum up the costs of conventional energy and pass them on to the consumers, the conventional energy levy in 2012 would amount to 10.2 cents per kilowatt-hour – that is almost three times higher than the current EEG levy. It is very important that we clarify this within the public debate on the costs of the energy transition. In a democratic context, decentralised energy supply is our great opportunity to get citizens broadly involved in the energy transition - and we must seize it! Citizen-owned wind and solar farms or citizen-owned grids are a good example.
Dr Klaus Rave, is the wind in Germany slowly dying down?
Klaus Rave:I’d say it’s time to take a deep breath and gain second wind. Scaremongering only shakes confidence in the market, and we don’t need anymore of that. If we get this right, the wind will pick up again. Wind has the potential to become one of the leading energy sources in renewa-bles. And wind energy in Northern Germany has great potential, for instance through the development of new surfaces in Schleswig-Holstein and increased repow-ering in the second half of this decade. That would also strengthen the domestic market. And we need wind en-ergy in the south. Its positioning on the north-south axis would harmonize the supply situation and contribute to the intrinsic value of wind energy. With more than 20 years’ experience we know the asset class of wind energy and how low the default risk is, both technically and on the credit side. It’s practically the best option for long-term investors, the majority of whom is unsure about which is the safest harbour to enter these days!
Hermann AlbersFor many years, Hermann Albers has been President of the German Wind Association BWE, the world’s largest asso-ciation for renewable energies with some 20,000 members. The wind pioneer runs a farm business in Schleswig-Hol-stein and is Managing Director of the citizen-owned wind farm Simonsberg and of various other privately owned wind farm companies.
Dr Klaus RaveDr Klaus Rave is CEO of the Global Wind Energy Council (GWEC) and Vice President of the European Wind Energy Association (EWEA). Furthermore, he is Chairman of the WKN Supervisory Board. From 1995 to the beginning of 2011 Dr Klaus Rave served as a member of the Executive Board of Investitionsbank Schleswig-Holstein and has made himself a name as one of the world’s leading wind experts since the early days of wind energy.
The German Renewable Energies Act (EEG) and the electricity price debate
Trying times for renewables
Cover story
WKNnews
2 3
Trying times for renewable - Part II
New regulations in capital market lawThe legal bases for investments will be subject to extensive amendments, in particular in re-
action to the financial market crisis. These amendments particularly apply to so-called closed
funds, offering participation in larger financing projects such as wind farms, for example,
which are not certified as securities and therefore not tradable on the stock market.
The paramount aim of the reforms is to create a legal framework for the formerly less regulated providers of closed funds and similar products. Banks and credit institutions, for which such a legal framework and state supervision already exists, are therefore not affected.
The amendments apply, on the one hand, to the sale of fund shares and, on the other hand, the management of the funds themselves.
The new Financial Products Sales Prospectus Regu-lation specifies the requirements for the content of the sales prospectus. In addition, a comprehensive investment information sheet is to be compiled for the investor. Apart from the regulations regarding the creation of a sales prospectus, the invoicing, publicity and auditing obligations of the investment companies have been increased. Furthermore, issues concerning liability, limitation periods and the investment interme-diation regulation have been substantially changed.
The administration and management of closed funds are governed at European level by the Alternative Investment Fund Managers Directive (AIFM Directive). The directive is to be transposed into national law by 22nd June 2013. The enactment of a capital investment
code of law is planned for the transposition in Germa-ny. The draft also contains comprehensive regulations on mutual funds. It may be difficult, especially for smaller providers of mutual funds, such as smaller, citizen-financed wind turbines for example, to fulfil the strict requirements. Then, only big issuing houses and banks would be able to offer public participation models, and, respectively, larger projects would only be able to be realised by big energy providers or other financially strong investors, which might have an effect on the acceptance in the population.
According to the German draft, the threshold of invest-ment assets of 100 million euros provided by the directive does not apply to mutual funds. The former exception for cooperative shares was not adopted. Small mutual funds are subject to the same strict rules as large funds for com-mercial providers. Furthermore, only two legal forms for the formation of a closed fund are provided for, so that uncertified profit participation rights or similar bonds are no longer possible. The fund manager must main-tain a minimum level of equity capital. In accordance with former drafts, the minimum equity capital upon financing must be at least 40 percent, which represents a substantial increase and is not absolutely necessary for the profitable operation of the capital goods.
Furthermore, a final catalogue of permissible invest-ment objects is to apply to mutual funds. This, for example, renders impossible the financing of power lines (that are not substantially more risky compared with the catalogue objects) or innovative, new invest-ment objects by private investor participation. Projects only investing in one single asset are only permissible in the case of high investment amounts for private investors. Diversification is required for small investor participations.
„Despite understanding the necessity for increased investor protection, we see difficult times ahead for the branch,“ says Olaf Nicolaisen, Managing Director of BGZ Fondsverwaltung GmbH. „The turnaround in energy policy is more and more at risk. Even such pro-jects as public wind farms and re-powering measures with a high degree of acceptance are heading for deep water.”
WKNnews
4
Newsticker
WKN AG · House of Future Energies · Husum/Germany · www.wkn-ag.de · [email protected]
Frank Kraatz, Head of Business Development – fi rmly keeps our growth in mind and is a seasoned veteran in emerging markets.
Local heroes for international challenges
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Ever since autumn 2012 the WKN group has been actively supporting the steadily growing
charitable project VIVA CON AGUA with its consumption of mineral water. The House of
Future Energies obtains its mineral water supplies for employees, visitors and in-house events
from the VIVA CON AGUA initiative.
Around the world, almost 1 billion people live without access to clean drinking water and over 2.5 billion people do not have adequate basic sanitation. With springwater from VIVA CON AGUA, water projects are funded and implemented around the world. The priority aims of the charitable organisation are: • to improve drinking water supplies in developing
countries, thus enabling all people access to clean water;
• to raise public awareness of the global water issue; • to provide a social platform everyone can get
involved in. 21 water projects in 14 developing countries have already been successfully implemented.
By the way, the mineral water spring is located in the di-rect neighbourhood of the Husum-based developer in a pollution-free underground reservoir near the wind capital. It is bottled in a mineral water factory in Husum, thus there are no major transport routes.
“We want to provide long-term support for the VIVA CON AGUA initiative, because the idea is just plain fan-tastic,” says WKN CEO Martinus Scherweit. “And the fact that the spring is located only five kilometres from our location makes it just perfect.”
WKN Group supports Viva con Agua
Viva con Agua – charity in a bottle!
WKNnews
6
Private long-term care insurance
State support as of 2013
At the turn of 2012 / 2013, quite a few things are going to change on the insurance
market. Besides the introduction of UNISEX tariffs, a reform within private long-term
care insurance is going to be implemented: With effect from 2013, anyone who makes private
provisions for care needs is entitled to receive state support. Already for a monthly contribu-
tion of ten euros, the state provides a financial grant of five euros.
A glance at the demographic change of our society demonstrates the importance of private provisions: In the future, more and more people will require old-age nursing care. Calculations show that by 2030, the number of patients with Alzheimer’s disease alone will increase to 1.7 million. Therefore, the financing of care is going broadened as of 2013.
Regardless of their personal income, people with stat-utory long-term care insurance are entitled to receive an annual bonus of 60 euros (five euros per month) as of 2013 if they voluntarily take out a supplementa-ry, private long-term care insurance. The minimum contribution is 120 euros to ensure that state support is proportionate to the benefit. This way a minimum level of insurance benefit can be provided for.
Who is entitled to take out this insur-ance?
All adult policyholders of social or private long-term care insurances are entitled to take out a supplemen-tary, private long-term care insurance. The policies may not stipulate exclusion criteria or risk premiums relating to pre-existing conditions. Only minors and persons already in need of care cannot take out this type of insurance. Long-term care insurances that offer cash benefits corresponding to the care allowance are eligible for support.
Existing supplementary long-term care insurances are eligible for support if they meet certain requirements, e.g. the policies may not contain any benefit exclusions or risk premiums and waiting periods may not exceed five years.
You can request your noncommittal offer – e.g. with a minimum annual premium of 120 euros – from the independent insurance broker Capital-Concept Asse-kuranz GmbH. “Many insurers have not yet reacted to the upcoming changes and must develop new tariffs,” says CCA Managing Director Stephan Koth. But it is about to happen. “In order to establish a concrete offer, we initially only need the inquirer’s name, address and date of birth,” Stephan Koth specifies.
Please contact CCA Managing Director Stephan Koth for more detailed information or a personal conversa-tion. He can be reached by phone at +49 4841-8944-938 or via e-mail at [email protected].
Right in the middle of a turbulent competitive environ-ment, in the shadow of the ongoing debate on the Ger-man Renewable Energies Act, accompanied by occasio-nally rather unfavourable weather conditions, the WKN Group strikes a positive balance: “We had so many posi-tive conversations – both with new and existing contacts,” states WKN CEO Martinus Scherweid, who is still deeply impressed with the trade fair. “It was simply terrific!”
The WKN Group says “thank you” for a fantastic trade fair and expresses its appreciation to all business partners who found their way to Husum as well as to the team of the Husum trade fair organisation.
2012 HUSUMWindEnergy
Thank you!
With some 36,000 visitors and an exhibitor increase of 20 per cent,
the leading wind energy trade fair HUSUMWindEnergy, which
took place at the end of September, has broken its own records. On
five enriching days a total of 1,171 exhibitors from the wind energy
industry were represented at the bustling trade fair in the otherwise
so tranquil town of Husum.
Great people, great meetings, great party and great signings of contracts. Thank you!
WKN_1200_PP_076 Postkarten Husum Wind 20082012_02.indd 3 28.08.12 09:13
Husum – sorry, the original.
WKNnews
28 9
New at the House of Future Energies: September 2012 Artur Lagodzinski, Site Aquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sevivon
September 2012 Malin Holler, Wind & Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WKN AG
October 2012 Andreas Blatt, Wind & Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WKN AG
October 2012 Franziska Wilbert, Assistance Site Aquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WKN AG
October 2012 Marc Przykopanski, Site Aquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WKN AG
October 2012 Klaudia Tylicka, Legal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sevivon
November 2012 Marina Berg, Project Development Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WKN AG
November 2012 Mario Göldenitz, Project Developer Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WKN AG
November 2012 Nina Christiansen, Assistance Wind & Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WKN AG
November 2012 Ines Petersen, Assistance Pool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WKN AG
November 2012 Tanja Saß, Technical Drawing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WKN AG
November 2012 Maike Hansen, Receptionist & Assistant Communication & Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WKN AG
November 2012 Lukasz Roß, Electrical Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WKN AG
December 2012 Andrei Calogrea, Project Management Romania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IWC Romania
BGZ Fondsverwaltung acquires wind farm companies
19.4 megawatts on top
The Husum-based business fund administrator BGZ Fondsverwaltung has added two com-
panies with a total of seven limited partnerships to its portfolio. The companies Greenwind
GmbH and REE GmbH are the personally liable shareholders of the limited partnerships of
the following wind farms:
• Greenwind Energyworld I GmbH & Co. KG• Greenwind Hambergen GmbH & Co. KG• REE GmbH & Co. Airpower I KG• REE GmbH & Co. Airpower II Lausitz KG• Windpark Wöhrden West GmbH & Co.
Windpark Kuhla KG• Dritte Werder GmbH & Co. KG• REE GmbH & Co. Werder KG
The companies operate a total of 18 wind turbines with a nominal capacity of 19.4 megawatts. 122 limited partners originally provided the equity capital. Besides taking over the management, BGZ Fondsverwaltung is also responsible for the commercial management and financial accounting of the seven wind farm companies.
Let‘s talk about (Uni-)Sex
For several months already this topic has been making the (German) headlines.
As of 2013 insurance tariffs may no longer make a distinction between policyholders based
on their sex. The following table shows the implications for men and women in detail:
Private...Implications for mentariffs will become ...
Immediate need for action
Implications for women tariffs will
become ...
Immediate need for action
... comprehensive health insurance
More expensive Yes Less expensive Yes, adjustment option*
... supplementary health insurance
More expensive Yes Less expensive Yes, adjustment option*
.... supplementary long-term care insurance
More expensive Yes Less expensive Yes, adjustment option*
... pension insurance More expensive Yes Less expensive Yes, adjustment option*
.... term life insurance Less expensive Yes, adjustment option* More expensive Yes
... occupational disability insurance
More expensive Yes Less expensive Yes, adjustment option*
... casualty insurance Less expensive Yes, adjustment option*More expensive,
especially craftswomenYes
*UNISEX adjustment option:Anyone who applies for the old BISEX tariff between now and 20th December 2012 has the possibility to change to the less expensive UNISEX tariff before 30th June 2013. In this case, the inception date must be between 1st August 2012 and 1st March 2013.
Please contact CCA Managing Director Stephan Koth for more detailed information or a personal conversation. He can be reached by phone at +49 4841-8944-938 or via e-mail at [email protected].
House of Future Energies
10
Publisher:WKN AGHouse of Future EnergiesOtto-Hahn-Straße 12–1625813 Husum
Editor:Catrin Petersen, WKN AG
Graphic Design:HOCHZWEI Büro für visuelle Kommunikation GmbH & Co. KG,Flensburg, www.hoch2.de
Printing:Druckhaus Leupelt GmbH & Co. KG, Handewitt, www.leupelt.deImprint
House of Future Energies – Competence Centre and Think Tank
WKN AGDevelopment, financing and turn-key erection of wind and solar projectsTel.: 04841 - 89 44-100, [email protected]
WKN Windkraft Nord Beteiligungs-GmbHFull partner of windfarm KG‘sTel.: 04841 - 89 44-221, [email protected]
BGZ Fondsverwaltung GmbHAdministration of energy farmsTel.: 04841 - 89 44-825, [email protected]
Capital-Concept Assekuranz GmbHIndependant Insurance BrokerTel.: 04841 - 89 44-938, [email protected]
energy-consult – A WKN trademarkTechnical Operations ManagementTel.: 04841 - 89 44-413, [email protected]
Innovative Wind Concepts GmbHDevelopment of wind energy projectsin Middle- and Eastern EuropeTel.: 04841 - 89 44-955, [email protected]
