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Chapter 2: European market overview

The current status of the EU wind energy market

Wind has become an integral part of the generation mix of markets like Germany, Spain, and Denmark alongside conventional power sources. Nonetheless, it continues to face the double challenge of competing against other technologies, while proving itself as a sound energy choice for large power producers seeking to enlarge and diversity their portfolios.

By the end of 2007, there was 56,535 MW of wind power capacity installed in the EU-27, of which 55,860 MW was in the EU-15. In EWEA’s previous scenario, drawn up in October 2003, we expected 54,350 MW to be installed in the EU-15 by the end of 2007. Thus the total capacity was underestimated by 1,510 MW over the five-year period. In 2003, EWEA expected total annual installations in 2007 to be 6,600 MW, whereas the actual market was significantly higher at 8,291 MW in the EU-15 (8,554 MW in the EU-27).

In the EU, installed wind power capacity has increased by an average of 25% annually over the past eleven years, from 4,753 MW in 1997 to 56,535 MW in 2007. In terms of annual installations, the EU market for wind turbines has grown by 19% annually, from 1,277 MW in 1997 to 8,554 MW in 2007.

In 2007, Spain (3,522 MW) was by far the largest market for wind turbines, followed by Germany (1,667 MW), France (888 MW) and Italy (603 MW).  Eight countries – Germany, Spain, Denmark, Italy, France, the UK, Portugal and the Netherlands – now have more than 1,000 MW installed. Germany, Spain and Denmark – the three pioneering countries of wind power – are home to 72% of installed wind power capacity. That share is expected to decrease to 62% of installed capacity in 2010.

Germany and Spain continue to attract the majority of investments. In 2007, these two countries represented 61% of the EU market. However, there is a healthy trend towards less reliance on Germany and Spain, although this trend was broken in 2007 due to unprecedented Spanish growth. In 2000, 468 MW of European wind power capacity was installed outside Germany, Spain and Denmark. In 2007, the figure was 3,362 MW.

 

Fig 2.1 a: European cumulative wind power capacity 1990-2007 (in MW), source EWEA

 

Fig 2.1.b: Global annual wind power capacity 1991-2007 (in MW), source EWEA

 

Fig 2.1:2007 Member State market shares for     Fig 2.2: End 2007 Member State

Country	2000	2001	2002	2003	2004	2005	2006	2007	2010
Austria	77	94	140	415	606	819	965	982	1200
Belgium	13	32	35	68	96	167	194	287	800
Bulgaria					10	10	36	70	200
Cyprus			0	0	0	0	0	0	0
Czech Republic			3	9	17	28	54	116	250
Denmark	2417	2489	2889	3116	3118	3128	3136	3125	4150
Estonia			2	2	6	32	32	58	150
Finland	39	39	43	52	82	82	86	110	220
France	66	93	148	257	390	757	1567	2454	5300
Germany	6113	8754	11994	14609	16629	18415	20622	22247	25624
Greece	189	272	297	383	473	573	746	871	1500
Hungary			3	3	3	17	61	65	150
Ireland	118	124	137	190	339	496	746	805	1326
Italy	427	682	788	905	1266	1718	2123	2726	4500
Latvia			24	27	27	27	27	27	100
Lithuania			0	0	6	6	48	50	100
Luxembourg	10	15	17	22	35	35	35	35	50
Malta			0	0	0	0	0	0	0
Netherlands	446	486	693	910	1079	1219	1558	1746	3000
Poland			27	63	63	83	153	276	1000
Portugal	100	131	195	296	522	1022	1716	2150	3500
Romania			1	1	1	2	3	8	50
Slovakia			0	3	5	5	5	5	25
Slovenia			0	0	0	0	0	0	25
Spain	2235	3337	4825	6203	8264	10028	11623	15145	20000
Sweden	231	293	345	399	442	510	571	788	1665
UK	406	474	552	667	904	1332	1962	2389	5115
EU Accumulated*	12887	17315	23098	28491	34372	40500	48031	56535	80000

Excluding Germany, Spain and Denmark, there has been an almost fivefold increase in the annual market in the past five years, confirming that a second wave of European countries are investing in wind power, partly as a result of the EU Renewable Electricity Directive of 2001.

 

Fig 2.3: Germany, Spain and Denmark’s share of the EU market 2000-2007 (in MW), Source: EWEA

The total wind power capacity installed at the end of 2007 will produce 3.7% of the EU-27 electricity demand in a normal wind year. Wind power in Denmark covers more than 20% of its total electricity consumption, by far the largest share of any country in the world. Five EU countries - Denmark, Spain, Portugal, Ireland, and Germany – have more than 5% of their electricity demand met by wind energy .

 

Fig. 2.4: Wind power’s share of national electricity demand, Source: EWEA

By the end of 2007, 116 kW of wind energy capacity was installed for every 1,000 people in the EU. Denmark tops the list with 579 kW/1,000 people followed by Spain (367 kW) and Germany (270 kW). If all EU countries had installed the same amount of wind power capacity per population as Spain, the total installed capacity in the EU would be 180,000 MW, equal to EWEA’s 2020 target. If all EU countries had the same amount of capacity per capita as Denmark, total EU installations would be 282,000 MW, slightly less than the EWEA 2030 target.

Fig. 2.5: Installed wind capacity – kW/1,000 inhabitants, source EWEA

There is 12.2 MW of wind power capacity installed per 1,000 km2 of land area in the EU. Not surprisingly, being a small country, wind power density is highest in Denmark, but Germany comes a close second. It is interesting that Spain’s wind power density is less than half that of Germany, indicating a large remaining potential - at least from a visual perspective. The Netherlands, Portugal and Luxembourg are also above the EU average.

Many geographically large Member States, such as France, Sweden, Finland, Poland and Italy, still have very low density compared with the first-mover countries. If Sweden had the same wind power density as Germany, there would be more than 28 GW of wind power capacity installed in Sweden (0.8 GW was operating by end 2007) and France would have more than 34 GW of wind power capacity (compared to 2.5 GW in December 2007).

 

Fig. 2.6: Wind installation MW/1,000 km2, source: EWEA

Fig. 2.7: Top 10 annual markets in the EU (MW), source: EWEA

Summary of the wind energy market in the EU-27 in 2007 56 GW installed capacity, including 1.08 GW offshore Annual installations of 8.5 GW, including 0.2 GW offshore Electricity production of  119 TWh, including 4 TWh offshore Meeting 3.7% of total EU electricity demand. 40.3 % of the annual new electricity generating capacity 55% of annual net increase in installed electricity generating capacity 7.3% of total installed electricity generating capacity Providing power equivalent to the needs of 30 million average EU households (15% of EU households) Annual avoided fuel costs of €3.9 billion Annual investments in wind turbines of € 11.3 billion Total life-time avoided fuel costs of wind power capacity installed in 2007 of €16 billion (assuming fuel prices equivalent to $90 a barrel of oil) Total life-time avoided CO2 cost of wind power capacity installed in 2007 of €6.6 billion (assuming CO2 price of €25/t) European manufacturers have a 75% share of the global market for wind turbines (2006)