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developments, the federal government announced a national ofshore strat-
egy (BMU2001) that, when inally ramped up, would produce sizable results
over the ensuing two decades. he aim was to foster ofshore wind power
development of 500 MW by 2006, 3,000 MW by 2010 and up to 25,000 MW
by 2025/2030. In response to rumblings of social discontent over ofshore
turbines undermining the aesthetics of Germany's seaside communities, the
government also announced that it would limit its ofshore development
to the exclusive economic zone (EEZ), meaning that sites would be situated
at least 12 nautical miles from the coast. 23 Developing projects far ofshore
attenuated community opposition but it presented costly technical challenges
that to this day are not fully resolved.
Despite the announcement of an intention to limit ofshore wind power
development to the EEZ, there were still ecological concerns that ofshore
projects might adversely impact marine life. Consequently, the government
initiated a research program to investigate ecological impacts and identify
mitigation measures. 24
By the end of 2002, the future of wind power in Germany was rosy.
Germany's 12,000 MW of installed wind power capacity represented 39%
of global wind power capacity; annually, one in every two turbines installed
around the world were being installed in Germany. Moreover, 53,200 people
were working in the wind industry, an increase of almost 40,000 people in
four short years. Nuclear power was on its way out and the new ofshore
strategy promised to triple existing wind power generation capacity within
two decades. 25 In a public opinion poll undertaken in 2003, wind power was
the most preferred alternative energy technology and 61% of the respon-
dents airmed support for the government's decision to phase-out nuclear
energy (compared to 46% just three years previous). 26
However, over the ensuing two years signs began to emerge that the fur-
ther difusion of wind power would not be without challenges. Steel, which is
a critical input in the construction of wind turbine towers and many turbine
components, almost doubled in price between 2002 and 2004. Copper, which is
used for cabling, generators, and other electrical components, doubled in price
between 2003 and 2004. 27 his unanticipated increase in factor prices eroded
proit margins and forced many developers to reign in development activities.
During the same period, pockets of concentrated wind power development
began to engender community resistance due to the aesthetic invasiveness of
wind turbine arrays. 28 Even repowering initiatives were beginning to engender
community resistance, resulting in delays and rejections of permits issued for
building new wind power plants that exceeded 100 m in height.
In government circles, it became apparent that the 3,247 MW of installed
capacity added in 2002 represented somewhat of a developmental peak. In
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