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BWE Industry Report - Wind Industry in Germany 2018

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The latest issue of the BWE Industry Report 2018. On about 250 pages you will find the current state of development and an overview of more than 450 companies of the German wind industry.


CLIMATE PROTECTION AND CO 2 TAX Black on white: Germany’s unfavourable climate protection figures Despite the increasing proportion of green electricity, Germany’s carbon dioxide emissions are rising. This is due to the fact that the number of lignite-fired power stations has remained high, and that climate protection measures in the heating and transport sectors have stagnated. One solution would be to increase carbon pricing. At the end of January 2017, the German Federal Environmental Agency (UBA) sent a report on the country’s current greenhouse gas balance to the European Commission. According to this report, the annual emissions of greenhouse gases such as CO 2 , methane and nitrous oxide increased by 2.6 million tonnes to a total of 909.4 million in 2016. According to the UBA, this was already the second increase in a row for Germany, the pioneer of the energy transition. Since 1990, annual emissions have decreased by only 27.3 percent. What is particularly alarming is that CO 2 emissions, which make up 88 percent of greenhouse gases and dominate the public debate on climate change, have fallen by just 23.9 percent since 1990. This is significantly below the More and more CO 2 avoided thanks to renewable power 180 160 140 120 100 80 160.5 German government’s self-imposed goal of a greenhouse gas reduction of 40 percent by 2020. The main reason for this lamentable result is that emissions from transport, building heat supplies and industry have increased. The transport sector does even worse than in 1990. In contrast, the electricity sector is performing relatively well. Emissions in this sector fell by 1.4 percent in 2016 thanks to renewable energies. The strong increase in the proportion of total energy production represented by renewables in 2017 will further accelerate this trend. Nevertheless, at the end of 2016, the electricity sector continued to account for the bulk of emissions, at 332 million tonnes. One thing is clear: if the German climate protection goals are to be reached, electricity must play a crucial role in this. “If we want to achieve something quickly in climate protection, we will have to tackle the issue of coalfired power generation,” says Maria Krautzberger, President of the UBA. This will also be critical for 2030. She recommends shutting down at least 5 gigawatts’ worth of the oldest and least efficient lignite-fired power plants. 60 40 27.8 20 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 CO 2 emissions avoided in Germany thanks to renewable energy in millions of tonnes of CO 2 equivalent – due to renewable gross electricity generation (■), heating (■) and transport (■). Source: German Federal Environmental Agency (UBA), as of Dec. 2017 Open cast lignite mine in Welzow-Süd. 26 Wind Industry in Germany

Wirtschaftsreport | CLIMATE PROTECTION AND CO 2 TAX Wind turbines in front of Jänschwalde power station owned by Lausitz Energie AG. When will coal be phased out? The extent to which policymakers will follow the recommendations of environmental officials remains to be seen. The coalition agreement between the CDU/CSU and SPD is unspecific on phasing out coal. Concrete proposals will be drawn up by a commission of representatives from all sectors of society by the end of 2018. The coalition paper states that a grand coalition of CDU/CSU and SPD should increase the share of renewable energies from the current 36 percent to 65 percent by 2030. The suggested target had previously been Lignite maintains its high share in the electricity mix Terawatts hours 700 600 500 400 300 200 100 550 TWh 55 percent. According to the agreement, a special tender for 4 GW of onshore wind power within two years should help in the short term to close the foreseeable gap between actual figures and the 2020 climate goal “as soon as possible”. 654 TWh The German Renewable Energy Federation (BEE) applauds the increase in the green energy target, but has pointed out the lack of incentives in the coalition agreement for the energy transition in the areas of heating and transport. In the heating sector, the coalition partners have even taken a step backwards, BEE suggests. “How the climate goals are going to be achieved in the heating sector remains an open question following the submission of the coalition agreement,” says Managing Director Dr Peter Röttgen. Above all, the industry is calling for appropriate carbon pricing in all sectors. In return, the electricity tax could be reduced, relieving the financial burden on citizens. The new edition of the Élysée Treaty, which was approved by the German Bundestag and the French National Assembly, makes a similar suggestion. In the treaty, the parliamentarians call for a joint initiative for carbon pricing. 0 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017* Lignite nuclear power coal gases renewables other energy sources mineral oils Gross electricity generation in Germany by energy source in terawatt hours Source: Arbeitsgemeinschaft Energiebilanzen, as of Dec. 2017 Wind Industry in Germany 27

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