A new industrial revolution is underway in Europe --
the push by heads of state and governments across the
continent to usher in more renewable energy. The 27
nations there agreed to meet 20 percent of their overall
energy needs with green energy by 2020.
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Ken Silverstein
EnergyBiz Insider
Editor-in-Chief |
The overarching goal is to achieve more energy
independence and in doing so, move away from
fossil-fired fuels that contribute much of the dirty
emissions as well as carbon dioxide that is tied to
global warming. Each member state will have to set
national objectives, adopt action plans and determine
sector-specific targets.
Wind has a leg up. It represents one-third of all new
generation capacity installed in Europe between 2002 and
2006. In fact, the continent gets more than 3 percent of
its electricity from wind, produced by 50,000 megawatts
(MW) of installed capacity. Last year was a record, with
more than 7,500 MW of new wind farms being constructed,
a 23 percent increase over 2005. By 2020, 180,000 MW
could be operating.
"If the new European target is achieved, more than a
third of Europe's power will be renewably sourced by the
end of the next decade," says Peter Ahmels, President of
the German Wind Energy Association. "This has sent a
clear political signal. It is no less than the beginning
of a second industrial revolution."
Germany and Spain continue to attract the majority of
investments. In 2006, these two countries represented 50
percent of the EU market. With 2,233 MW installed during
2006, Germany passed the 20,000 MW mark. Spain was the
second largest market in 2006, with 1,587 MW of new
development. France was third, with 810 MW installed
capacity during the year. Denmark is also a European
pioneer, with at least 20 percent of its generation
capacity already coming from wind energy.
The European Wind Energy Association says that wind
power can contribute 16 percent of the required 20
percent green energy mix. But it maintains that a viable
legal framework is necessary along with clear guidelines
to market participants for the future direction of
renewable electricity in Europe. In addition, it says
that fair grid access for new entrants is also a
prerequisite.
Concrete Plans
Leaders across the continent get excellent grades for
their positive attitudes. But their optimism has been
somewhat doused by the European Commission. In a roadmap
released in January, the governing body says that the
European Union (EU) looks unlikely to hit the 10 percent
mark by 2010 because renewable energy forms are still
costly, relative to fossil fuels. The commission goes on
to say that wind energy could provide 12 percent of the
EU's electricity by 2020 if national strategies are
developed.
Getting to that threshold won't be a breeze either.
Like other renewable forms of energy, the wind sector
must overcome arguments that its costs remain high and
its underlying energy form is unreliable. With tax
credits, wind can compete with natural gas although it
has a difficult time doing so with coal. Nevertheless,
the groundswell of support for green energy has
encouraged more participants to enter markets and create
new innovations. As a result, prices are falling.
European leaders are acknowledging the challenges.
But they say that they are committed to change. "Wind
technology is not a dream for the future," says Herrmann
Albers, president of the German Bundesverband
WindEnergie. "It is real, it is mature and it can be
deployed on a large scale -- here and now."
Germany, in fact, is on track to meet its targets.
Currently, 5.7 percent of Germany's electricity comes
from wind energy, and 11.7 percent from renewable
energies. The nation plans to install new wind plants
with a capacity of 10,000 MW, and to replace old
turbines to provide an increase of 15,000 MW by 2020.
Beside Germany, Spain and Denmark, other countries
are doing their part. Portugal, for example, is on its
way to meeting its government target of more than 3,750
MW by 2010. It installed 694 MW of new capacity last
year and has another 1,063 MW under construction.
The United Kingdom, meanwhile, installed 634 MW in
2006 and now has close to 2,000 MW of wind capacity.
However, wind advocates there say that at least Great
Britain must revise some laws if it is to meet the goals
set by the EU. And Italy now has 2,500 MW of installed
wind capacity. But leaders there say that the nation
lacks clear guidelines, making it difficult for
developers to take the necessary risks.
A major catalyst behind all of the green endeavors is
the will to combat climate change. And advocates of the
movement say it makes sense both environmentally and
economically, noting that electricity production now
accounts for about 40 percent of the world's emissions.
Their cause has been underscored by the leaders of the
most developed nations, who at their latest summit
discussed cutting global carbon dioxide emissions in
half by 2050. If a legally binding target comes to pass,
those proponents say it would spur even more renewable
energy developments.
"We need to make big changes," says EU Energy
Commissioner Andris Piebalgs. "The technology is there
and we can master whatever is necessary to achieve
climate change and security of supply goals. We should
be ambitious ... and wind is one of the best ways."
EU leaders have noble goals backed by philosophical
principles. But if those aspirations are to be realized,
they must be backed by determination in combination with
a practical legal blueprint and realistic timetables.