Social barriers in wind power implementation in The Netherlands: Perceptions of wind power entrepreneurs and local civil servants of institutional and social conditions in realizing wind power projects

The primary social factors for the implementation of wind energy projects in a liberalized market are entrepreneurs willing to invest. Understanding conditions that trigger entrepreneurs to invest in these projects, and understanding conditions that determine the chance of success for entrepreneurs to implement and exploit their projects, is vital for setting up effective policies to stimulate wind electricity generation. This paper analyses the way in which wind power entrepreneurs and local civil servants experience social and institutional conditions in the operational process of realizing wind power projects, and their perceptions of policy implications. A groups support system in an electronic board room was used to analyze the perceptions. From the analysis it was concluded that wind power entrepreneurs and civil servants share the opinion that the institutionally embedded power position of local politicians, and the sensitiveness of the local political debate for the popular opinion are most critical for project realization. With regard to the proposed solutions, both groups differ in their approach. Entrepreneurs stress procedural solutions, such as limiting the possibilities to appeal, reducing the complexity of the formal authorization trajectory and using a top down planning approach. Civil servants stress more strategic solutions, such as providing more public information on the necessity of wind power for local politicians and citizens, and community involvement in planning processes. Finally, the analysis explains that steering strategies that have been developed at the national level to solve the planning problems at the operational level do not address the right problems.     

Wind power and the NIMBY-myth: institutional capacity and the limited significance of public support

In many countries, the development of wind power capacity has proceeded more slowly than expected. Levels of public acceptance are usually considered primary indicators of support for wind power within society. Surveys generally show strong overall public support for wind power, while concrete projects are felt to suffer from the Not-In-My-Backyard (NIMBY) syndrome. This paper questions the significance of these outcomes. It argues that other barriers to wind power implementation exist beyond attitudes among the population. The argument is made that institutional factors have a greater impact on wind energy facility siting. We will discuss two examples of how institutional factors shape the level of support when implementing wind power.     

Winds of time: Lessons from Utö in the Stockholm Archipelago, 1990–2001

When investigating the success or failure of different wind power projects, it is essential to take into account how they were historically situated. This study focuses on attempts to develop wind power in an archipelago setting, at Utö in Sweden. It has been argued that the development of Swedish wind power slowed during the 1990s; by revisiting the early days of wind power, looking at resistance and support, and connecting success factors, this can be further investigated.Whereas earlier research pointed out institutional conditions and site-specific conditions as crucial for successful wind power development and acceptance, the picture can be made more complete by discussing how wind power projects are affected by time-specific historical conditions. In the case of Utö, these can partly be associated with a newly launched political support program that gave the project political legitimacy and added a “pioneering spirit” to the endeavor. Conversely, when wind power is not seen as “pioneering” or “experimental” any more, but as a mere industrial activity, other incentives may need to be offered to municipalities.     

Development strategies for wind power industry in Jiangsu Province,China: Based on the evaluation of resource capacity

Jiangsu Province is one of the planned strategic areas for wind power development in China, but its current development of wind power industry is not so outstanding. Since, Jiangsu would encounter little market resistance, this paper focuses on the evaluation of resource capacity for wind power development in Jiangsu Province, including the wind energy capacity, land resources capacity and power grid capacity, in order to find their supportive or restrictive effects on the development of wind power industry. The results show that the wind energy resource in Jiangsu Province are sufficient to meet the needs of the development of wind farms; the extensive mudflat in the coastal areas also provides ideal site conditions for wind farms; but the power grid capacity is insufficient for the wind power development in Jiangsu. Therefore, from the aspect of enhancing the capacity of power grid for carrying wind power and from the other aspect of combining the non-grid-connected utilization and the large-scale storage of wind power, this paper suggests some strategies to overcome the constraints of grid capacity and promoting the wind power development in Jiangsu Province.     

To what extent does wind power deployment affect vested interests? A case study of the Northeast China Grid

China's wind power is in an embarrassing state. Along with its dramatic development since 2005, its curtailment ratio has been rising. Although this could be attributed to both physical and institutional factors, it is the institutional obstacles, mainly resulting from the adjustment difficulties of interests distribution, that have exercised a greater impact. The stakeholders relating to wind power integration are thermal power companies, grid companies and local governments. The extent to which wind power deployment affects these vested interests determines the core institutional obstacles to be addressed. Mainly based on quantitative and case analyses, we argue that currently wind deployment in China has a little impact on the interests of thermal companies, moderate impact on the interests of grid companies and great impact on local governments. We recommend that it is crucial to elevate the role of environmental protection and renewable energy increase while de-emphasize the role of economic growth in the evaluation of local governments’ performance, as well as provide incentives for grid companies to attend more to their social responsibilities rather than their scale expansion and revenue growth.     

The potential for wind energy in Britain

This paper discusses the prospects for the large-scale use of wind power for electricity supply in Britain. Recent economic advances in wind energy are outlined, and it is shown that on windy sites, currently-available machines are among the cheapest generating options. The results from detailed studies of wind energy resources, and of the long-term integration of wind power on the UK supply system, are then summarized. These studies are applied together in probabilistic projections of wind energy and power system costs. Results suggest that, siting permitting, the economic long-term contribution of wind energy in Britain is likely to lie in the range of 20–50% of system demand. The most critical questions for wind development now relate to institutional issues and the desirability of the source on such scales.     

Short-term optimal wind power generation capacity in liberalized electricity markets

Mainly because of environmental concerns and fuel price uncertainties, considerable amounts of wind-based generation capacity are being added to some deregulated power systems. The rapid wind development registered in some countries has essentially been driven by strong subsidizing programs. Since wind investments are commonly isolated from market signals, installed wind capacity can be higher than optimal, leading to distortions of the power prices with a consequent loss of social welfare. In this work, the influence of wind generation on power prices in the framework of a liberalized electricity market has been assessed by means of stochastic simulation techniques. The developed methodology allows investigating the maximal wind capacity that would be profitably deployed if wind investments were subject to market conditions only. For this purpose, stochastic variables determining power prices are accurately modeled. A test system resembling the size and characteristics of the German power system has been selected for this study. The expected value of the optimal, short-term wind capacity is evaluated for a considerable number of random realizations of power prices. The impact of dispersing the wind capacity over statistical independent wind sites has also been evaluated. The simulation results reveal that fuel prices, installation and financing costs of wind investments are very influential parameters on the maximal wind capacity that might be accommodated in a market-based manner.     

Wind power price trends in the United States: Struggling to remain competitive in the face of strong growth

The amount of wind power capacity being installed globally is surging, with the United States the world leader in terms of annual market share for three years running (2005–2007). The rapidly growing market for wind has been a double-edged sword, however, as the resulting supply-demand imbalance in wind turbines, along with the rising cost of materials and weakness in the US dollar, has put upward pressure on wind turbine costs, and ultimately, wind power prices. Two mitigating factors–reductions in the cost of equity provided to wind projects and improvements in project-level capacity factors–have helped to relieve some of the upward pressure on wind power prices over the last few years. Because neither of these two factors can be relied upon to further cushion the blow going forward, policymakers should recognize that continued financial support may be necessary to sustain the wind sector at its current pace of development, at least in the near term. Though this article emphasizes developments in the US market for wind power, those trends are similar to, and hold implications for, the worldwide wind power market.     

A computational fluid dynamics approach to wind prospecting: Lessons from the U.S. Appalachian region

A number of technological, institutional and market developments have lowered the minimally economic viable wind speeds for wind power generation while contributing to increasing profitability of the wind power industry in recent decades. Yet, information on the potential for wind power generation is still highly uncertain in many regions of the globe, particularly those with complex terrain features. We focus on an area by the foothills of the Appalachian region. Because we do not have precise wind measurements for this area, we do not attempt to produce an actual wind map, but instead use a three-dimensional computational fluid dynamics model to demonstrate the calculation of high resolution wind speeds with complex terrain information. Using this approach, we show how finer wind speed information can impact the status of an overlooked region in terms of its wind potential and improve wind prospecting by enabling investors to focus on the most promising sub-regions of a study area. Since private sector investors might not have the incentive to invest in finer-scale wind resource assessment that can be easily observed by competitors, public sector incentives or direct investments can help to promote wind power generation in overlooked but viable regions.     

国外风力发电的发展 机制和政策法规述评

本文介绍了国外风力发电的强制性市场开发和经济激励等政策,并简要说明了各国政策的历史、当前状况和未来趋势。市场开发政策是风力发电政策的核心,典型政策包括优惠购买价格机制,对发展数量不限制;规定发展数量,价格通过招标确定的机制;规定电力构成中可再生能源比例,市场决定价格的机制。与市场开发政策相对应,各国在不同历史时期对风电实行各种经济激励政策,包括投资补贴、价格补贴、税收优惠、科研开发和项目示范。教育和宣传也是各国推动风电发展的重要措施。     

Winds of change: How high wind penetrations will affect investment incentives in the GB electricity sector

Wind power is widely expected to expand rapidly in Britain over the next decade. Large amounts of variable wind power on the system will increase market risks, with prices more volatile and load factors for conventional thermal plant lower and more uncertain. This extra market risk may discourage investment in generation capacity. Financial viability for thermal plant will be increasingly dependent on price spikes during periods of low wind. Increased price risk will also make investment in other forms of low-carbon generation (e.g. nuclear power) more challenging.     

Developments in the utilisation of wind energy in Greece

The utilisation of renewable energy sources, and wind energy in particular, can be described in Greece as a story of high expectations, intense initial entrepreneurial interest, delays in the start-up phase of projects and, some times, disappointments during the implementation procedure. Still, the current situation gives reasons for some optimism. This paper provides a review of the present technological background in wind generators, as found in the Greek market, as well as a detailed analysis of the legislative framework. Moreover, it aims to analyse the development of the process of granting investment and production permissions and their implementation since 1999. Thus, it is possible to identify the main reasons for the problems that occurred since the liberalisation of the electricity market and to account for the interest in wind energy. Finally, comments and proposals are formulated concerning the hidden barriers, the pertinent problems and the promising perspectives of the use of wind energy in Greece.     

The relative importance of social and institutional conditions in the planning of wind power projects

Governments around the world try to stimulate the development and use of renewable energy technologies, like wind energy. While wind turbines are increasingly being implemented, however, a lack of social acceptance at the local level remains an important challenge for developers of wind power plants. This article aims to explore the relative importance of social and institutional conditions and their interdependencies in the operational process of planning wind power schemes. The article not only focuses on how negative local social conditions can frustrate public policy (cf. NIMBY syndrome), but also on how positive local social conditions can compensate for a negative public policy framework. We analyzed the cases of implementing wind power of two actors (the regional energy distributor and small private investors) in the municipality of Zeewolde, the Netherlands. Both cases illustrate that the formal institutional framework (formal rules, procedures and instruments) is neutral in a certain sense. Social conditions – management styles, interests and informal contacts – put meaning in this framework. The way stakeholders deal with the prevailing institutional structure clarifies social acceptance and therewith implementation.     

Comparative assessment of performance of foreign and local wind turbine manufacturers in China

Compared to the conventional fossil fuel energy, wind power provides clean energy which can mitigate the impacts of greenhouse gas emission and optimize the electric power source structure. During the last decade, the strong support of the Chinese government has contributed to the rapid development of the Chinese wind power sector which has in turn resulted in a significant growth of the Chinese wind turbine manufacturing industry. This growth went through several phases including the initial approval of several leading global Wind Turbine Manufacturers (WTMs) to enter the Chinese market through various methods which included the establishment of wholly foreign-owned enterprises from 2005. Similarly, several government policies have contributed to the significant expansion in terms of both productivity and quantities by local Chinese WTMs. The entrance of foreign WTMs into the Chinese market coupled with the rapid growth of local WTMs has contributed to intense competition in China’s wind turbine manufacture market. This paper analyzes the characteristics of the wind turbine manufacturing industry in China and establishes a hierarchical structure of the WTMs’ competitive priority system. This system consists of 5 indicators and 10 sub-indicators. By comparing the different performances of each indicator, the competitive advantages and disadvantages of the foreign and local WTMs in the Chinese market are identified. The findings provide a valuable reference for the WTMs to improve their competitive priorities and to formulate their competitive strategy in the Chinese wind turbine market. This paper provides inputs for the sustainable development of wind power industry in other countries.     

How does market power affect the impact of large scale wind investment in 'energy only' wholesale electricity markets?

In the short run, it is well known that increasing wind penetration is likely to reduce spot market electricity prices due to the merit order effect. The long run effect is less clear because there will be a change in new capacity investment in response to the wind penetration. In this paper we examine the interaction between capacity investment, wind penetration and market power by first using a least-cost generation expansion model to simulate capacity investment with increasing amounts of wind generation, and then using a computer agent-based model to predict electricity prices in the presence of market power. We find the degree to which firms are able to exercise market power depends critically on the ratio of capacity to peak demand. For our preferred long run generation scenario we show market power increases for some periods as wind penetration increases however the merit order counteracts this with the results that prices overall remain flat. Returns to peakers increase significantly as wind penetration increases. The market power in turn leads to inefficient dispatch which is exacerbated with large amounts of wind generation.     

High penetration wind generation impacts on spot prices in the Australian national electricity market

This paper explores wind power integration issues for the South Australian (SA) region of the Australian National Electricity Market (NEM) by assessing the interaction of regional wind generation, electricity demand and spot prices over 2 recent years of market operation. SA's wind energy penetration has recently surpassed 20% and it has only a limited interconnection with other regions of the NEM. As such, it represents an interesting example of high wind penetration in a gross wholesale pool market electricity industry. Our findings suggest that while electricity demand continues to have the greatest influence on spot prices in SA, wind generation levels have become a significant secondary influence, and there is an inverse relationship between wind generation and price. No clear relationship between wind generation and demand has been identified although some periods of extremely high demand may coincide with lower wind generation. Periods of high wind output are associated with generally lower market prices, and also appear to contribute to extreme negative price events. The results highlight the importance of electricity market and renewable policy design in facilitating economically efficient high wind penetrations.     

Wind power and market power in competitive markets

Average market prices for intermittent generation technologies are lower than for conventional generation. This has a technical reason but can be exaggerated in the presence of market power. When there is much wind smaller amounts of conventional generation technologies are required, and prices are lower, while at times of little wind prices are higher. This effect reflects the value of different generation technologies to the system. But under conditions of market power, conventional generators with market power can further depress the prices if they have to buy back energy at times of large wind output and can increase prices if they have to sell additional power at times of little wind output. This greatly exaggerates the effect. Forward contracting does not reduce the effect. An important consequence is that allowing market power profit margins as a support mechanism for generation capacity investment is not a technologically neutral policy.     

风电发展瓶颈原因分析及应对措施研究

在中国风电高速发展的大好形势下,风电发展较快的地区先后遭遇到发展"瓶颈",如何摆脱风电发展"瓶颈"束缚,促进中国风电健康发展成为关注的焦点。本文以酒泉风电基地为例,介绍了风电发展所面临的送出"瓶颈"、市场"瓶颈"和技术"瓶颈",详细地分析了产生"瓶颈"问题的技术、经济、政策和管理等方面原因,研究探讨了应对措施。     

The present status and challenges of wind energy education and training in China

Wind energy has been identified in China as an important alternative energy source to balance its energy mix. By the end of 2012, wind power (2%) has surpassed nuclear power to become China's 3rd largest energy resource of electricity, only behind thermal power and hydropower. The rapid growth of China wind power industry in recent years has made China become the biggest market in the world. Meanwhile, it has created a big market for educational institutions to provide wind energy related education and training. The main objective of this study is to review current wind energy education and training in Chinese universities and training centers. Most of wind energy courses are provided by public universities because they have been accredited by Ministry of Education of China to offer students different options, including full-time and part-time degrees in Bachelor, Master or Ph.D. On-the-job training also has tremendous demand from the professionals who prefer short-term courses or on-site courses. Generally, the development of wind energy education and training lags behind the growth of wind power industry. Our study highlights the major opportunities and future challenges in China wind energy education and training.     

Potential of trading wind power as regulation services in the California short-term electricity market

A short-term electricity market is usually composed of the energy market and ancillary service market. However, wind power is not allowed to be traded in ancillary service markets although it has been proven technically feasible to be regulation services. This paper aims to explore the market potential of trading wind power as regulation services in the California electricity market. A model for wind power trade in the day-ahead (DA) market is established considering the uncertainties of market prices and wind power. An optimal trading strategy for wind power producers is derived by using an analytical algorithm. Trading wind power as regulation is tested by using actual data and the impacts of market control on the market outcome are discussed. The results show that, based on the current framework of the California electricity market, wind power producers can earn much more money if they bid in the DA energy and regulation markets than if they only bid in the DA energy market. The results also show that the potential to enhance profit for wind power producers is larger in the regulation down market than in the regulation up market.