Environmental Engineering Reference
In-Depth Information
this plan, calling for 3800 km of high-voltage electricity lines, has been esti-
mated at €20 billion dollars. On top of this expense, it is estimated that
1700 km of alternating current lines will be required and will have to enter
service between 2017 and 2020 in order to meet capacity targets.
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he cost of developing ofshore wind projects is so high that the coopera-
tive investment model which drove onshore wind power development is not
viable. A typical size for planned ofshore wind parks is 80 turbines with
a total capacity of 400 MW.
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Such mega-ofshore developments require
signiicantly more investment, suggesting that many of the projects in the
future will be driven by larger irms. his will alter the proile of wind power
investment and the nature of stakeholder interest.
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he scale of expansion that has been exacerbated by the decision to expe-
dite phase-out of Germany's nuclear reactors poses project management
challenges, even if the inances of fortifying the grids can be worked out.
Peter Terium, the CEO of German utility RWE, has publicly questioned the
viability of installing 10,000 MW of ofshore wind power by 2020, lament-
ing, “I don't see how we can get 10,000 MW done. I think maybe 6000 MW
is possible.”
130
In July 2012, grid operator TenneT echoed the concern by
announcing that it doesn't know when it will be able to connect a planned
€1 billion North Sea project to the German grid because of technical issues.
Overall, it is also becoming apparent that elevated contributions of wind
power are starting to engender concerns over grid resilience and stabil-
ity. One recent study contends that increased contributions of renewable
energy to the grid do not pose a threat to grid resilience in the short term;
however, the 2020 targets will likely enhance the need for backup capac-
ity and possibly necessitate stabilizing electricity imports from neighboring
nations. he same study contends that large-scale construction of gas-ired
power plants may be necessary to ensure grid stability up to 2030.
131
Up until this point, German electricity consumers have exhibited a will-
ingness to accept a certain degree of aesthetic impairment to landscapes and
higher electricity prices in order to transition away from carbon-intensive
electricity generation technologies. However, one has to wonder where the
limits of tolerance lie.
132
For example, under the German feed-in tarif sys-
tem, the electricity consumer shoulders the diference between the market
price for electricity and the feed-in tarif. his has resulted in a surcharge
of €0.036 per kWh in 2012. According to some forecasts, this surcharge
might increase by 50% or more as contributions from renewable energy
increase. So far household consumers have been tolerant toward paying the
surcharge; however, industrial consumers have become increasingly vocal
in raising concerns over the high price of electricity undermining interna-
tional competitiveness.
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he government appears to be aware of this. On
