Wind Energy: a source of sustainable growth

1. Wind Energy: a source of sustainable growth Glória RodriguesSenior Research Officer European Wind Energy Association EMF, 22/03/10, International Trade Union House

2. WHAT IS THE EUROPEAN WIND ENERGY ASSOCIATION? EWEA is the voice of the wind industry, actively promoting the utilisation of wind power in Europe and worldwide. Resources are focussed on lobbying, communication and policy activities, and responding to enquiries from our member organisations.

3. More than 600 members from almost 60 countries • Manufacturers covering 90% of the world wind power market • Component suppliers • Research institutes • National wind and renewables associations • Developers • Electricity providers • Finance and insurance companies • Consultants • Contractors This combined strength makes EWEA the world’slargest and powerful wind energy network in the world

4. Members include the following leading players:

5. OUTLINE • EU wind energy market: major achievements and perspectives • Achievements: wind power leads the power sector • Perspectives : towards a 230/265 GW installed capacity by 2020 • EU wind energy labour market: major achievements and perspectives • Achievements: > than 192.000 people employed • Perspectives: towards 446,000 jobs by 2020 • Challenges: towards a leading competitive green economy

6. OUTLINE • EU wind energy market: major achievements and perspectives • EU wind energy labour market : major achievements and perspectives • Challenges: towards a leading competitive green economy

7. 1.1 ACHIEVEMENTSGlobal Cumulative Capacity (1996-2010) Annual growth of 38 GW led by the Chinese, European and USA markets

8. 1.1 ACHIEVEMENTS Cumulative wind energy installations

9. 1.1 ACHIEVEMENTS Annual wind energy installations MW

10. 1.1 ACHIEVEMENTS Share of new power capacity installed in 2009 (26,963 GW)

11. 1.1 ACHIEVEMENTS New power capacity additions 1999-2009 (EU-27, GW)

12. 1.1 ACHIEVEMENTS EU TOP5 Wind Energy Capacity

13. Wind Energy in EU-27: Achievements • 75 GWinstalled capacity, incl. 1.6 GW offshore • Annual installations of 10GW, incl. 0.5 GW offshore • Electricity production of 163 TWh • Meeting 4,5%of total EU electricity demand • Providing power equivalent to the needs of 41 million average EU households • Avoiding 106Mt of CO2 – equivalent to taking more than 53 million cars off the road (21% of the EU car fleet) • Annual avoided fuel cost of €5.4 billion and CO2 costs of approximately €2.4 billion • Annual investments in wind turbines of €13 billion

14. 1.2. PERSPECTIVES Towards a 230/265 GW installed capacity by 2020

15. 1.2. PERSPECTIVES Towards a 230 GW installed capacity by 2020 • 230/265 GWinstalled capacity, incl. 40/55 GW offshore • Meeting between 14-17% of total EU electricity demand (depending on total demand in 2020) • Providing power equivalent to the needs of 131 million average EU households • Avoiding 333 Mt. CO2 annually

16. OUTLINE • EU wind energy market: major achievements and perspectives • EU wind energy labour market : major achievements and perspectives • Challenges: towards a leading competitive green economy

17. 2.1 ACHIEVEMENTSEMPLOY-RES study results • In 2005 the RES sector employs 1.4 million people 180.000

18. 2.1 ACHIEVEMENTSEWEA study • The EU wind energy sector directly employed approximately 108,600 peoplein 2007 • Including indirect jobs, the sector employed 154,000 people • Direct employment has increased by 60,237 (125%) since 2002 • On average, the wind energy sector in Europe has created 33 new jobs every day, seven days a week over the past five years • Wind turbine and component manufacturers are responsible for the 59% of direct wind energy employment

19. 2.1 ACHIEVEMENTSEmployment breakdown across sectors

20. 2.1 ACHIEVEMENTSDirect employment Rest of EU: 400 direct jobs

21. 2.1 ACHIEVEMENTSGermany • Direct jobs: 38,000 • Indirect jobs: 84,300 • Just one-third of total employment is direct, while the other two-thirds relate to suppliers, sub-suppliers and service companies • The reason is that over 80% of the value chain in the German wind energy sector in 2007 was exported and used in “foreign” wind turbine manufacturing

22. 2.1 ACHIEVEMENTSGermany a close up on Bremerhaven • Bremerhaven used to be blighted by declining shipping and fishing industries • In the last two years, €250 million of private and public funds have been invested in offshore wind energy industry development in the city • This brought about the creation of 1,200 direct jobs in companies manufacturing turbines and components between 2006 and 2008

23. 2.1 ACHIEVEMENTSDenmark • Direct jobs: 23,500 • Denmark was the first country in the world to start mass-production of wind turbines • Almost 40% of global installed capacity is produced by Danish manufacturers • Lots of workers have transferred to the wind industry from the steel industry, shipbuilding, slaughterhouses and other agriculture-related businesses

24. 2.1 ACHIEVEMENTSDenmark a close-up on Nakskov • Lots of jobs were lost in Nakskov when its shipyard closed in 1987 and many of the area’s agricultural processing plants moved abroad • In 1999-2000, Vestas set up a factory in Nakskov making wind turbine blades, which created 650 new jobs. Another 600 jobs were indirectly created in other companies as a result • Since then the unemployment rate has fallen below the Danish average and end 2006, the city was actively trying to attract more skilled labour

25. 2.1 ACHIEVEMENTSSpain – a close-up on Navarre • Navarre is home to four wind turbine assembly factories, four blade manufacturing centres, two component manufacturing plants and the largest wind turbine testing laboratory in the world • Many smaller service companies have sprung up around the manufacturing centres, and 5,000 people make a living from them • The key to this success is a combination of factors: • the region having been an early mover • the strong support given by the regional government • the qualified workforce and advanced infrastructure

26. 2.2 PERSPECTIVES Wind energy employment in the EU will more than double from 154,000 in 2007 to almost 446,000by 2020

27. OUTLINE • EU wind energy market: major achievements and perspectives • EU wind energy labour market : major achievements and perspectives • Challenges: towards a leading competitive green economy

28. Wind power is already... • Improving EU competitiveness by developing wind power to lower electricity prices and reduce exposure to volatile and high fuel and carbon prices • Offering export opportunities of wind power technology (market share of 60% of the €35 billion global market for wind turbines) • Creating more and better jobs • Greening the economy and tackling climate change challenges • Reducing EU’s energy dependence

29. But further action is needed to position Europe as leading green economy.... ACTIONS • Ensure MS implement the RES Directive and begin working towards their 2020 RES targets in a timely fashion • Creation of a truly competitive single electricity market • Construction of a European supergrid, vital for a properly functioning electricity market, intelligently managed and, in addition, capable of integrating vast quantities of onshore and offshore wind power • Research policy: maintaining and securing European technology leadership • Implementation of European Wind Roadmap and SET Plan objectives for the sector • Greater mobility of students and researchers • Strengthening of links between institutes – universities – industry • Increasing the research quality of Europe’s universities • Increased public and private research funding • More coordinated funding policies

30. Innovation and industrial policy • Tecnology development should focus on • keeping reducing the cost of energy, through continued technology improvement (more efficient, reliable, accessible and cost-effective wind turbines)I • Improving the supply chain to deliver the necessary amounts of wind turbines, substructures and components • Public and private partnerships to maximise investments • Remove unnecessary admnistrative burdens and provide the necessary legal certainty for long term investments • Facilitating access to credit (e.g. facilitating the use of instruments of EIB) • Up-skilling the European work force: creation of new and high quality jobs • Skills and labour markets need to be better matched • Upgrading skills: reviewing education programmes; lifelong learning programmes; on-the-job training... • More flexible labour market, based on labour mobility across and within borders, and sectors (from declining to the new expanding ones)

31. 20 – 23 April 2010, Warsaw, Poland www.ewec2010.info

32. Thank you very much for your attention www.ewea.org RENEWABLE ENERGY HOUSE 63-65 RUE D’ARLON B-1040 BRUSSELS T: +32 2 546 1940 F: +32 2 546 1944 E: ewea@ewea.org

33. 2.2 PERSPECTIVES Job opportunities at EWEA’s job portal http://jobs.ewea.org/

35. KEY CHALLENGES/OBJECTIVES (I) • Ensure MS implement the Renewables Directive and begin working towards their 2020 RES targets in a timely fashion • Ambitious National Action Plans allowing them to reach/surpass interim trajectories and meet final targets • ELECTRICITY INFRASTRUCTURE AND MARKETS • Ensure that the EC’s “Blueprint for a North Sea offshore grid” becomes, together with the Mediterranean Ring and the Baltic Interconnection project, one of the building blocks of a future European power grid • Ensure grid infrastructure is updated and interconnectors are improved, in order to incorporate large amounts of offshore wind energy into the electricity grid, while improving the functioning of the Internal Energy Market • Ensure that the EU creates a properly functioning and competitive internal electricity market, including introducing full ownership unbundling of vertically integrated electricity companies • More flexibility in the power system (e.g. shorter gate closure times) • Support a structural harmonisation of grid codes

36. KEY CHALLENGES/OBJECTIVES (II) • INNOVATION, RESEARCH & DEVELOPMENT • Keep reducing the cost of energy, through continued technology improvement (more efficient, reliable, accessible and cost-effective wind turbines) • Improve the supply chain to deliver the necessary amounts of wind turbines, substructures and components • Increased public and private research funding • Secure the work force needed to reach the overall objectives • OFFSHORE WIND POWER • Put in place a European policy framework for offshore wind power • Upgrade, extend and reinforce the electricity grid to accomodate large amounts of wind energy • Optimise the supply chain • Ensure MS improve planning procedures and implement the use of Maritime Spatial Planning

37. KEY CHALLENGES/OBJECTIVES (III) • Ensure appropriate administrative procedures • Encourage local and regional benefits and promote public acceptance

38. Other projects and initiatives of interest… Cost structure of a typical 2 MW wind turbine installed in Europe (€ 2006) • Investment costs • O&M costs • Electricity production • Average wind speed • Turbine lifetime • Discount rate • Wind energy: 75% of costs paid upfront • Conventional power: less capital intensive – uncertain fuel and carbon costs

39. Competitiveness of the wind energy sector • Rising fuel and carbon prices increase competitiveness of wind-generated power • At inland sites, costs become lower than natural gas and only around 10% more expensive than coal • On coastal sites, wind power produces the cheapest electricity • Uncertainties of future fuel and CO2 prices imply a considerable risk for future generation costs of conventional plants • Wind: zero fuel cost, zero CO2 cost

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