World Wind Energy Association

Uniting the World of Wind Energy

www.wwindea.org

1st World Community Power Conference Fukushima

Community Wind Perspectives

from North-Rhine Westphalia

Key results of the WWEA/LEE NRW Community Wind study

Carlo Schick

1st WCPC Fukushima, 3 November 2016

World Wind Energy Association

Uniting the World of Wind Energy
www.wwindea.org

WWEA - Definition of Community Wind

Community Wind is any combination of at least two of the following three
elements:

Local stakeholders
own a majority
share

Majority of
social and
economic
benefits are
distributed
locally

Carlo Schick

Voting control
rests with a
communitybased
organisation

1st WCPC Fukushima, 3 November 2016

World Wind Energy Association

Uniting the World of Wind Energy
www.wwindea.org

Share of Community Wind in Germany

Installed onshore wind capacity in Germany by ownership
structure in 2012 (30,854 MW)
Large utilities
10,2%

Individual owners 4,2%

Community Wind
(WWEA
definition)
20,4%

Institutional
investors 39,4%

Community Wind
(broad defintion)
50,4%
Minority share
participation
and supra-regional
participation
25,8%

Source: trend:research 2013

Added capacity 2012-2014 share of Community Wind projects 15-20%

Carlo Schick

1st WCPC Fukushima, 3 November 2016

World Wind Energy Association

Uniting the World of Wind Energy
www.wwindea.org

Data basis

Period of surveys and interviews:

26.10.2015 - 30.11.2015

Expert interviews n=10

7 CEOs of Community Wind farms, 1 cooperative
2 Community Wind facilitators
1 CEO of a Community Wind project developer

Online survey: n=22

16 respondents with more then 5 years experience in the field
Respondents from all administrative regions
10 CEOs, 9 shareholders, 3 others

Carlo Schick

1st WCPC Fukushima, 3 November 2016

World Wind Energy Association

Uniting the World of Wind Energy
www.wwindea.org

Results Part 1: Reflection on Community Wind Definition

Frequently mentioned

Project development and operation by local citizens, motivated through local citizens, financed
by local citizens

Denomination structures broad basis of local investors

Local added value

Not excluding larger wind farms

High share of honorary/voluntary activities

Soft costs not higher than 10%

Characteristics generally in line with the WWEA Community Wind definition

Contested issues: defining locality, municipal involvement and local
foundations
Carlo Schick

1st WCPC Fukushima, 3 November 2016

World Wind Energy Association

Uniting the World of Wind Energy
www.wwindea.org

Results Part 2: Beneficial effects of Community Wind

Acceptance

Very high
influence

Added value for the region

Increase in actor diversity
Creation of local identity

Only means to realise specific kind of plants

High
influence

Shared decision-making and transparency

Integration of citizens into sustainable economic processes
Increase of citizens involvement

Medium
influence
Carlo Schick

Job creation
Establishment of a new economic sector

1st WCPC Fukushima, 3 November 2016

World Wind Energy Association

Uniting the World of Wind Energy
www.wwindea.org

Results Part 3: Drivers and Barriers of Community Wind

Drivers
Guaranteed feed-in tariff
Backing by a wind-friendly state
government
NRW Wind Energy Decree 2011
Municipal climate/renewable energy
initiatives

Networking structures

Barriers
Competition with larger project
developers (e.g. land leases)
Higher complexity of planning
processes
Conflicts with wind energy
opponents
Prospectus requirements for
closed-end funds
Decreasing social
awareness/backing of the
Energiewende

Carlo Schick

1st WCPC Fukushima, 3 November 2016

World Wind Energy Association

Uniting the World of Wind Energy
www.wwindea.org

Results Part 4: The expected effects of auctions for Community Wind

How will the upcoming onshore wind auctions affect the activities of
Community Wind stakeholders?
16

14

12

10

very negative

Carlo Schick

negative

neutral

positive

very positive

1st WCPC Fukushima, 3 November 2016

World Wind Energy Association

Uniting the World of Wind Energy
www.wwindea.org

Results Part 4: The expected effects of auctions for Community Wind

Additional risks introduced by auctioning scheme

Risk of bid acceptance

Financial feasibility (equity, debt and venture capital acquisition)
Penalty risks

Strategic bidding by other market players

Competitive disadvantage for small players/Community Wind

Carlo Schick

1st WCPC Fukushima, 3 November 2016

World Wind Energy Association

Uniting the World of Wind Energy
www.wwindea.org

Results Part 4: The expected effects of auctions for Community Wind

level of usefulness

Assessment of exemption mechanisms

For smaller projects (de-minimis, 6x6 MW)

For one-time market participation

Separate auctions for smaller projects

level of usefulness

Assessment of auction design options

Carlo Schick

Lower qualification requirements

Safety deposit only after successful bid

Statutory shareholding quotas

1st WCPC Fukushima, 3 November 2016

World Wind Energy Association

Uniting the World of Wind Energy
www.wwindea.org

Results Part 5: Future avenues

Which innovative models, processes, and technologies are you persuing or plan to persue in
future?
0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Regional electricity tariff

Energy production from other RET

Energy efficiency

Storage

E-mobility

not planned
Carlo Schick

of interest

already active
1st WCPC Fukushima, 3 November 2016

World Wind Energy Association

Uniting the World of Wind Energy
www.wwindea.org

Conclusion and a glance on the way ahead

Community Wind in NRW (and Germany) at cross-roads
FIT worked very well so far
Auctions put Community Wind projects at a competitive disadvantage

Future prospects
Exemptions for Community Wind project necessary
Conducive framework conditions for Community Wind in general

NRW-study as a first stone in a research mosaic on Community

Power/Wind
Exploration of further business models
International studies required
Stock-taking of Community Power for evaluation of auctions

WWEA/LEE NRW will survey the auctioning schemes influence on

Community Wind in NRW in an upcoming longitudinal study
Carlo Schick

1st WCPC Fukushima, 3 November 2016