Environmental Engineering Reference
In-Depth Information
are also subject to existing laws and statutes such as the SeeAnIV of 1997
(which mandates an EIA for proposed ofshore wind energy facilities) and the
Federal Maritime Responsibilities Act of 2002. 107 Establishing high standards
have forced manufacturers to innovate and improve German ofshore wind
system technology. his also ensures that German wind system technology can
readily meet the most stringent standards in international markets.
In the early days of wind power development, the government experi-
mented with a number of diferent policy tools designed to enhance the
commercial prospects of wind power. hree policies in particular have been
highlighted as key catalysts for the wind energy boom of the early 1990s. 108
he irst of these three was the 100 MW program announced in 1989 which
was in essence a renewable portfolio standard that spurred the development
of 100 MW of wind power by ofering a €0.04/kWh premium above wholesale
market prices for electricity generated by qualifying wind power projects. he
second policy initiative was an upgrade of this renewable portfolio standard
to a 250 MW program in 1991. 109 In combination, these two programs made
it clear to prospective investors that the government was intent on support-
ing progressive wind power development. he third policy initiative was the
announcement of a feed-in tarif in 1991. he feed-in tarif was an attempt
on the part of the government to reward actual generation rather than just
installed capacity. his new tarif was accompanied by a number of other fed-
eral, regional and municipal support programs that encouraged investment in
wind power through subsidies, tax incentives and soft loans. 110
In the mid-1990s, the government liberalized the electricity generation
market resulting in enhanced market opportunities for renewable energy
generators. Although market liberalization gave rise to resistance from
power utilities, it provided the market opportunities that provided the
economies of scale needed to reduce the cost of wind power and close the
competitive gap with coal-ired power.
“Progressive escalation of commitment” is perhaps the most suitable
phrase for describing why German energy policy was so successful in encour-
aging wind power development. One example is the upgrading of the renew-
able portfolio standard from 100 MW to 250 MW only two years after the
initial program was announced. Another example is the Renewable Energy
Sources Act that was passed in 2000. his act improved upon the feed-in tar-
if on 1996, and obligated utilities to connect wind power projects to the grid
and defused market risk by giving renewables feed-in priority at a purchase
price that was guaranteed over a 20-year period. 111
When the government shifted its sights to ofshore wind power devel-
opment, it was equally as committed. In 2002, the government released a
strategy paper that declared intentions to develop ofshore capacity of 500
Search WWH ::




Custom Search