Energy
www.renewables-made-in-germany.com
Tobias CossenHo Chi Minh, October 29th 2012
On-Shore Wind Power
Good Business for Everyone
Agenda
Renewables and Business Market Phases Advantage for Wind Power
Wind Power Sector – An Experience from German Market History and Status Public Sector Value Creation Regional and Local Value Creation Private Sector Value Creation
Summary
Renewables and Business
Market Phases
Graph represents photovoltaic cycles, nevertheless has similarities to wind power
Renewables and Business
Market Phases
Markets will develop if (reasonable) incentives and (reasonable!) regulation secure the framework
Renewables and Business
Advantage for Wind Power Levelised costs of energy (LCOE) close or below the grid parity Incentive instruments at a lower cost necessary and high grid penetration >3.000full load hours available at 365 days per year 24 hours a day (depending on site &
turbine) providing energy and grid stabilization services
Not possible without a reasonable business model for all involved stakeholders!Source: GWEC
Advantage for Wind Power June 2011: signature of decree for wind Feed-in-Tariff (FiT) in Vietnam
The correct first step!
Renewables and Business
History and Status Cumulative installed capacity of wind power
Wind Power in Germany
History and Status Installed capacity of wind power per year
Wind Power in Germany
History and Status
Political incentive mechanism (=Feed-in-Tariff) was the decisive factor!
Wind Power in Germany
Wind Power in Germany
History and Status
An investment vehicle (=FiT) wascreated, wanted by the population andaccepted by the private sector!
Wind Power in Germany
Public Sector Value Creation Rural areas offer significant more space as urban centers and have the opportunity to
profit when energy systems transits to decentralized generation
Rural Area I Urban Area
ener
gy c
onsu
mpt
ion
Rural Area IIen
ergy
con
sum
ptio
n
Ener
gy c
onsu
mpt
ion
100%
surplus
100%
surplus
25%
energy flow
economical flow
Wind Power in Germany
Public Sector Value Creation Energy independence Low priced energy Climate protection and sustainability
Instead of spending money on imported rawmaterials, jobs and values are created in the region!
Wind Power in Germany
Regional Value Creation Renewable energy and especially wind power brought new
perspective and income for the economically challenged eastern provinces
Approx. 100.000 jobs in the German wind industry
Wind Power in Germany
Local Value Creation Improved “green” image Eco tourism Attractive for “energy tourism”
Wind Power in Germany
Local Value Creation Citizens can get involved and participate in wind energy (=citizens wind farm) Local communities profit from lease payments and tax revenues – and again, jobs
Wind Power in Germany
Private Sector Value Creation Revenue of German Wind Turbine Manufacturers
Apart from “classic” industries like automotive and engine construction a new industry was created for an export oriented economy
Source: AEE
Wind Power in Germany
Private Sector Value Creation Investment in German Wind Turbines and Production Capacities
Apart from “classic” industries like automotive and engine construction a new industry was created for an export oriented economy
Source: AEE
Side Note – Results of Long Lasting Political and Private Investment in Wind Power Highest capacity of available wind turbine: ENERCON E-126 rated at 7.5 MW 18.000 MWh yield per year (demand of approx. 20.000 German households)
Wind Power in Germany
Side Note – Results of Long Lasting Political and Private Investment in Wind Power ENERTRAG hybrid power plant (hydrogen production by cracking water with wind
energy)
Wind Power in Germany
Side Note – Results of Long Lasting Political and Private Investment in Wind Power ENERTRAG hybrid power plant (hydrogen production by cracking water with wind
energy)
Wind Power in Germany
Public sector needs to define “the rules of the game”
Research and development (R&D) by public and private sector
Private sector needs to realize profit margins for innovation and risk investment
Summary
Last but not Least Population needs to understand and participate in the value creation!
if not:
Summary
Last but not Least Population needs to understand and participate in the value creation!
if not:
Summary