BWEA Press Release

Friday 4th March 2004

Global wind industry grows as positive assessment of grid integration reported from Germany

On the day that the global wind industry announced figures reporting a market expansion of 20% last year and that Europe once again dominated with over 70% of new installations in 2004, the British Wind Energy Association also welcomes the publication of a report by the German Energy Agency, DENA, clarifying the cost of integrating wind power into the German electricity grid.

Contrary to press stories that claim this report calls into question Germany's policy to dramatically expand wind generation, it actually sets out that the country's power network can be adapted quite easily for such an expansion, and at reasonable cost.

While BWEA is awaiting the full translation of this lengthy and detailed report, initial analysis of the executive summary, together with the official English press statement from DENA and a translation of the press statement made by German Environment Minister Jürgen Trittin, leads to bafflement on the part of the Association that the report's findings could be so misconstrued.

The headline finding of the report is that expansion of Germany's wind power capacity to 37,000 megawatts (MW), up from a world-leading 17,000 MW now, can be accommodated by extending and upgrading 5% of the country's grid, and increasing power prices by only 0.36-0.45 €¢/kWh (0.25-0.31p/kWh). As a result, the average household electricity bill will increase by only €12.6-15.8/year. Put in context, for an additional cost to the consumer of about £10 per year, equivalent to two cinema tickets, Germany will achieve 20% of its power from renewables, reaping the benefits of lower carbon emissions, economic development and security of energy supply.

The recent report by the National Audit Office indicated that sourcing 10% of the UK's electricity from renewables would also increase power bills marginally, by about 5% by 2010, in the same order of magnitude as the numbers in the DENA study. Given that gas prices are volatile and high, which has resulted in steep rises in power bills, this small rise in costs appears to be excellent value for money. Wind will provide the vast bulk of the new renewable power required to meet this target. For this small additional cost, the UK wind industry will deliver savings of between 10 and 17 million tonnes of carbon dioxide, a significant part of our country's carbon dioxide reduction plans, thousands of new jobs and of course improve our nation's energy security.

Marcus Rand, Chief Executive of BWEA, commented:

"This report, like that produced recently in the UK by the National Audit Office, makes clear that a significant expansion of wind power can be delivered at only a small additional cost to both German and UK consumers. In the case of Germany, meeting a target of generating 20% of their power from wind and other renewables will add a mere £10 a year to an average household's electricity bill. As well as being a key part of any rational policy to tackle climate change, wind energy also delivers the additional benefits of a new industry and improved energy security."

It is true that carbon emissions can be reduced from present levels through energy efficiency at a lower cost than using wind power. However, savings available from efficiency gains are a one-time benefit and do not eliminate the requirement for environmentally sustainable power supplies. There is a need, given the scale of emission reductions required, for new carbon-free power generation to be developed alongside a rapidly expanding energy efficiency programme. Any coherent climate policy will include both energy conservation and renewables – and both the UK's and Germany's policies do just that.

Notes:

BWEA is the UK's leading renewable energy association, championing the UK wind and marine renewables industry, representing 320 companies active in the sector.

For press comments on the implications of the German grid study for the UK wind industry, contact

Dr Gordon Edge
Head of Offshore
British Wind Energy Association
t 020 7689 1967 / m 07968 843 789 / e gordon@bwea.com

  • A summary of the DENA Study report is available in PDF format from http://www.ewea.org/documents/Dena%20Grid%20Study_Summary_2005-03-16_dena.pdf
  • The 2004 global wind energy market statistics are available from http://www.ewea.org/documents/0304-Global%20Wind%20Energy%20Markets%20-%20FINAL.pdf
  • An English version of the DENA press release can be found online at http://www.ewea.org/documents/Pressrelease_Dena_Grid-Study.pdf
  • The press statement by German Federal Environment Minister Jürgen Trittin is available at http://www.ewea.org/documents/0223-%20Minister%20Trittin%20&%20DENA%20EN.pdf
  • BWEA's response to the National Audit Office report on renewable energy is at http://www.bwea.com/media/news/nao.html