German wind farms to be terminated as subsidies run out

The short working life of wind turbines compared to power stations, plus their lack of commercial viability, will likely put the brakes on German renewables expansion according to this GWPF report. Where do used wind farms go to die?

Wind power is the most important component of Germany’s green energy transition.

The end of subsidies for older turbines, however, threatens countless wind farms. By 2023, more than a quarter of Germany’s onshore wind farms may be gone.

Several thousand wind turbines in Germany are likely to be closed down in the next decade because they will no longer receive any subsidies. “If electricity prices do not rise over the next decade, only a few plants will survive on the market without subsidies,” says an analysis by the Berlin-based consulting firm Energy Brainpool.

This assessment is shared by most professionals. “In any case, by 2020, the shutdown of existing facilities is to be expected to a greater or lesser extent,” an article by several economists of the Helmholtz Center for Environmental Research in Leipzig concludes.

The sticking point is the electricity price of 2021, which nobody knows today. Older wind turbines which have been running for 20 years or more will lose their subsidies under the Renewable Energy Act (EEG), but not their operating permit. They could go on generating power, if they would be profitable.

Like all older technology, after 20 years of wear and tear, wind turbines are prone to repairs and are more maintenance-intensive than new products. Operating costs are higher too. The current electricity price of around three cents per kilowatt hour would not be enough to keep wind farms running – with perhaps a few exceptions in particularly good locations.

Continued here.