Madera, 8. E-28004 MadridTel.: +34 91 456 49 00. Fax: +34 91 523 04 14

e-mail: comunicacion@idae.eshttp://www.idae.es

WWind Enerind Energygy in Sin Spainpain

20052005 CurrCurrent Statusent Status and Pand Prrospectsospects

R E N E W A B L E E N E R G Y

Wind Energy

Wind Energy in Spain

2005 Current Status and Prospects

Second edition in English, May 2002Reedición actualizada en inglés, mayo

TITLE OF PUBLICATION

“Current Status and Prospects for Wind Energy in Spain 2005”

AUTHOR AND PUPLISHER

Written and published by the Institute for the Diversification and Saving of Energy - IDAE ­

..........................................................................................................................................

This publication is included in the “Reports” Series of the IDAE publication bank.

This publication may not be reproduced, in whole or in part, without the prior consent of IDAE.

Legal deposit: M-23683-2006. ..........................................................................................................................................

The Institute for the Diversification and Saving of Energy (Instituto para la Diversificación y Ahorro de la Energía, IDAE) is a public business entity attached to the Ministry of Industry, Tourism and Trade. Its mission and goals are to promote energy effi­ciency, rational energy use, energy supply diversification and increased use of renewable sources of energy in Spain.

IDAE Instituto para la Diversificación y Ahorro de la Energía

C/ Madera, 8 E - 28004 - Madrid

comunicacion@idae.es www.idae.es

Cover photo: “La Florida” wind farm (Canary Islands, Spain)

Updated edition in English, May 2006

Contents

State of the technology in Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Percentage distribution per manufacturer . . . . . . . . . . . . . . . . . . . . . . . . . .5

Accumulated installed capacity per technology in Spain . . . . . . . . . . . . . .6

Regulatory framework in the European Union . . . . . . . . . . . . . . . . . . . . . . .6

Regulatory framework at national level . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Installed wind energy capacity worldwide . . . . . . . . . . . . . . . . . . . . . . . . . .8

Installed wind energy capacity in the Eur0pean Union . . . . . . . . . . . . . . . . .8

Outstanding figures in wind energy sector in Spain . . . . . . . . . . . . . . . . . .9

Installed generating capacity in each Spanish Region . . . . . . . . . . . . . . . .9

Development of wind energy in Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Yearly investment in the wind energy sector in Spain . . . . . . . . . . . . . . . .10

Evolution of cost per kW of installed capacity in Spain . . . . . . . . . . . . . . .11

Key points to current and future development . . . . . . . . . . . . . . . . . . . . . .11

General mission of IDAE and activities in the wind energy sector . . . . . .12

IDAE investment in the wind energy sector . . . . . . . . . . . . . . . . . . . . . . . .12

State of the technology in Spain

General points • Two Spanish companies – GAMESA and ECOTÈCNIA – were among the world’s ten largest manufacturers in 2005. Both represented 15% of the global market.

Wind turbine manufacturers using Spanish technology

• GAMESA, ECOTÈCNIA, ACCIONA WP*, M. TORRES: which together account for 74% of total installed capacity.

Foreign technology • VESTAS, GENERAL ELECTRIC, ...: 22%.

Spanish manufacturers with technology transfer agreements

• NAVANTIA – SIEMENS, ...: 4%.

Domestic manufacturing capacity • More than 2,000 MW per year.

Companies in the sector • More than 550.

Average rated power • 1,160 kW per new unit installed in 2005.

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e n

t S

t a

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* until 2005 INGETUR (EHN). 5

Percentage distribution per manufacturer

60

50

40

30

20

10

GA

MES

A(S

PA)

VES

TAS

(DEN

)

G. E

LECT

RIC

(US

A)

ACCI

ON

A W

P(S

PA)

NAV

AN

TIA

­S

IEM

ENS

(SPA

/GER

)

M T

OR

RES

(SPA

)

45.2

17.4 15.4

11.0

2.3 0.3

%

0

8.4

ECO

TÈCN

IA(S

PA)

35

30

25

20

15

10

5

0

28.4

18.0

13.5 13.2

6.2 5.6

3.2 2.7 2.1 2.0

5.1

VES

TAS

(DEN

)

G. E

LECT

RIC

(US

A)

ENER

CON

(GER

)

GA

MES

A(S

PA)

SIE

MEN

S(G

ER)

SU

ZLO

N(I

ND

)

MIT

SU

BIS

HI

(JA

P)

ECO

TÈCN

IA(S

PA)

NO

RD

EX(G

ER)

REP

OW

ER(G

ER/F

RA

)

OTH

ERS

%Installed capacity in Spain in 2005 (1,464 MW)

Worldwide market share in 2005 (11,407 MW)

Provisional data Source: IDAE and BTM Consult ApS

1,014

Accumulated installed capacity (MW) per technology in Spain on 31/12/2005

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TOTAL: 9,781 MW

GAMESA 61.1%

VESTAS 12.6%

G. ELECTRIC 8.4%

ECOTÈCNIA 8.6%

NAVANTIA-SIEMENS 3.6%

OTHERS 3.2%ACCIONA WP

2.5%

1,233

841

822

350

240

315

5,980 GAMESA EÓLICA

VESTAS

ECOTÈCNIA

GENERAL ELECTRIC

NAVANTIA-SIEMENS

ACCIONA WP

OTHERS

Provisional data Source: IDAE

Regulatory framework in the European Union (EU-15)

White Paper (Dated December 1997)

Overall target • Contribution from Renewable Energy Sources (RES) of 12% of primary energy consumption in the European Union by 2010.

Wind Power target • Reach 40,000 MW by 2010.

Campaign for Take-Off • Encompassing the period 1999-2003, it acted as a catalyst for the development of the key RES sectors.

• Wind Energy: More than 20,000 MW installed in the period, doubling the foreseen figure.

Directive 2001/77/CE (Dated September 27th)

Overall target • Contribution from RES of 22%* relative to the annual electricity consumption of European Union in year 2010.

National target • In Spain implies that electricity generated with RES represents a percentage of 29.4% of the scheduled total in year 2010.

* updated to 21% for EU-25 (“Accesion Treaty” signed on 16th April 2003).

Regulatory framework of reference at national level

Spanish Electric Power Act 54/1997 (Dated November 27th)

Main goal • Liberalization of the electricity market (reached on Jan 2003).

Establishes • Special Regime for Renewable Energy Sources (P < 50 MW).

• Guaranteed grid access. • A premium for electricity from RES. • Territorial and environmental matters are compe­

tence of the Regional Governments.

Requires • A Promotion Plan for RES.

Royal Decree on Special Regime 436/2004 (Dated March 12th)

Object • Legal and economic scheme for Special Regime.

Methodology • Feed-in tariff system (guaranteed along life-time): (1) Regulated price (determined by the capacity and year

of starting up) or (2) Sale in the free market: Pool price + Incentive + Premium + Extras

• Payment with reference to yearly average electrical tariff (regulated maximun evolution until 2010).

• Production forecast for P > 10 MW (since 1st Jan 2007). • Penalty for deviations above 20% (option (1)). • Transitory period for former plants (until 1st Jan 2007).

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Environmental Impact Assessment Act 6/2001 (Dated March 8th)

The Spanish Renewable Energy Plan 2005 - 2010. Wind Energy Area. (Approved by the Council of Ministers on 26/08/2005)

Main overall targets • Meet: - 12.1 % of primary energy consumption, and - 30.3 % of gross national electricity consump­

tion, from RES by 2010. • Estimated investment (2005-2010): € 23,600 m.

Wind power target • Have ready an installed capacity of 20,155 MW at the end of the year 2010.

Main measures • Development of transport grid. • Updating of the regulatory procedures regarding

grid access and operating conditions. • Establishment of a single Operation Centre for

the Special Regime. • Development of control centres grouping wind

farms belonging to the same owner (or within the same geographical area).

• Investment subsidies are not envisaged.

Installed wind energy capacity (MW) worldwide on 31/12/2005

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EUROPEAN UNION

UNITED STATES

INDIA

CHINA

JAPAN

AUSTRALIA

REST

40,250

9,150

4,430

1,260

1,230

710

2,045

WORLDWIDE 59,075 MW

8

Provisional data Source: IDAE and GWEC

Installed wind energy capacity (MW) in the European Union (EU-25) on 31/12/2005

18,430 GERMANY

9,781 SPAIN

3,120 DENMARK

1,715 ITALY

1,080 NETHERLANDS

1,355 UNITED KINGDOM

1,020 PORTUGAL

820 AUSTRIA

2,930 REST

EUROPEAN UNION 40,250 MW

MW0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000

Provisional data Source: IDAE and EWEA

9

Outstanding figures in wind energy sector in Spain (updated at the end of the year 2005)

General

Overall Capacity Installed Accumulated Investment

Energy Sold Electricity Market Share Equivalent Consumption

9,781 MW € 8,774 m 21,000 GWh 7.5% 6 million households

Social Benefits

• More than 550 companies involved in the sector.

Accumulated Employment

• Design, Construction and Erection.

Direct 31,750

127,000 men-year

Non Direct 95,250

• Operation and Maintenance.

1,950 permanent jobs (all direct)

Environmental Issues

POLLUTANT

SO2

NOx

CO2

AVOIDED QUANTITY (t) *

144,500

79,800

19,690,000

* In relation to electricity generated by means of national hard coal-fired power plants [CIEMAT and CNE (2001)]

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Provisional data

Installed generating capacity (MW) in each Spanish Region on 31/12/2005

Galicia

2,371 162

143 1,333

1,871 21 3

55

Asturias

Pending (2006-2010) In operation

49%51%

Global Target (2010): 20,155 MW

145

908

418

1,759

451

140Canary Islands

Andalusia

Basque Country

Navarre

Castile & León

TOTAL: 9,781 MW

La Rioja

Provisional data Source: IDAE

Catalonia

Balearic Islands Valencian Region Castile-La Mancha

Murcia

Aragón

Development of wind energy in Spain 2,200

10,000 2,000

� � � � � � � � � � ��

�

�

�

�

�

�

�

�

ACCUMULATED �

IN OPERATION

9,000 1,800

8,000 1,600

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p a

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2 0

0 5 7,000 1,400

1,200

1,000

800

600

400

200

0

ACCU

MU

LATE

D (

MW

) 6,000

5,000

4,000

3,000

2,000

1,000

0

10

�

IN OPERATION

ACCUMULATED

86

0.4

0.4

87

1.2

1.6

88

0.8

2.4

89

1.5

3.9

90

2.7

6.6

91

0.7

7.3

92

38

46

93

6

52

94

24

75

95

40

115

96

96

211

97

229

440

98

393

834

99

642

1,476

00

815

2,292

01

985

3,276

02

1,615

4,891

03

1,344

6,235

04

2,082

8,317

05

1,464

9,781

Provisional data Source: IDAE

Yearly investment in the wind energy sector in Spain

YEA

RLY

INS

TALL

ED C

APA

CITY

(M

W)

Provisional data Source: IDAE

Evolution of cost per kW of installed capacity in Spain (Tendency curve)

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Estimated value for 2005 Source: IDAE

Key points to current and future development

CURRENT DEVELOPMENT FUTURE DEVELOPMENT

• Existence of significant wind resources.

• Stable regulatory framework for electricity gene­ration.

• Administrative procedures for the authorization of wind power installations in the Regions.

• Expertise, consolidated technology and econo­mies of escale.

• Reduction in costs of both construction/installa­tion and operation/maintenance.

• Reasonable return on investment.

• Long-term price guarantee.

• Development of grid infrastructure. Enable international interconnection.

• Wind energy integration into national power grid. Contribution to stability. Predictability.

• Easier, faster and more objective administrative procedures.

• Enhanced technology (enlarged efficiency, manufacturing cost reduction and improvement of reliability).

• Increase international competitiveness and worldwide spread.

General mission of IDAE and activities in the wind energy sector

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General mission • Promote energy efficiency and the rational use of energy.

• Diversify energy sources. • Boost the use of renewable sources of energy. • Foster technical and financial innovation.

Activities • Monitoring and analysis of the sector. • Promotional activities. • Collaboration with public bodies. • Participation in projects. • Technical Consultancy. • International Cooperation.

IDAE investment in the wind energy sector (updated 05/2006)

Region Owner Wind Farm or WTG model Capacity (MW) Investment IDAE share Start-up In oper. In exec. (€ m) (%) (year/s)

Andalusia SEASA * Tarifa 30.48 32.45 6.7 1993 Catalonia PEBESA Bajo Ebro 4.05 4.62 25.3 1995

Aragón EVESA La Muela II and III 29.70 24.77 24.0 1997/99 Galicia PEMALSA Malpica 16.58 15.68 27.2 1997/02 Murcia ELECDEY ASCOY, S.A. Sierra de Ascoy 7.64 6.93 18.5 1998/03

Andalusia SELL, S.A. Los Lances 10.68 9.05 20.0 1999 Catalonia SEESA Trucafort 29.85 27.95 10.0 1999 Canary I. PEGASA Punta Gaviota 6.93 6.76 30.0 2000 Galicia SOTAVENTO G., S.A. Sotavento 17.56 15.84 20.5 2000/01 Aragón S.E. LA PLANA, S.A. La Plana I and R&D 6.15 5.65 10.0 2000/01/02

Castile & León A. DEL VOLTOYA, S.A.** Altos del Voltoya I-IV 62.04 29.04 93.76 7.5 2000/04/07 Aragón ARVISA Sancho Abarca 10.50 9.44 40.0 2007

Total for shareholding 221.66 39.54 252.90 € 7.02 m

Murcia P.E. LA UNIÓN, S.L. La Unión 5.28 3.93 88.0 2000 Canary I. AGRAGUA, S.A. Montaña Pelada 4.62 3.69 100.0 2001 Canary I. ECASA Montaña Francisco 1.13 0.96 100.0 2001

Castile & León P.E. C. NUEVO, S.L. Corral Nuevo 5.28 4.26 96.8 2001 Galicia ENGASA Peña Galluda 0.66 0.57 100.0 2002

Canary I. SOSLAIRES C., S.L. La Florida 2.64 2.25 100.0 2002

Total for ERDF-IDAE programme 19.61 — 15.67 € 15.06 m

Andalusia ECOTÈCNIA ECOTÈCNIA 150/225/600 0.98 2.06 50/100/50 1989/92/96 Andalusia/Galicia MADE MADE 800 1.60 2.49 40.0 2000/01

Aragón GAMESA EÓLICA GAMESA 850/2000 2.85 2.27 92.7 2000/02 Navarre M. TORRES M. TORRES 1500 4.50 5.11 40.0 2001/03 Navarre ECOTÈCNIA ECOTÈCNIA 1250 1.25 2.87 40.0 2002 Navarre M.TORRES D.E., S.L. La Fraila 4.95 5.00 90.0 2004

Undetermined ECOTÈCNIA ECOTÈCNIA 3000 3.00 5.47 40.0 2007 Undetermined ACCIONA Windpower ACCIONA AW-3000 3.00 7.00 40.0 2007

Total for technology development 16.13 6.00 32.27 € 16.89 m

Aragón ELECDEY TARAZONA, S.A. Tarazona Sur 9.60 8.18 95.5 2002/04 Balearic I. CONSORCIO RSU MENORCA Es Milá 3.20 3.25 96.7 2004 Asturias P.E. PENOUTA, S.L.U. Penouta 5.95 5.07 90.3 2004

Castile - La Mancha EÓLICA MONTESINOS, S.L. El Romeral 15.00 13.75 92.7 2007

Total for third-party financing 18.75 15.00 30.25 € 28.28 m

TOTAL 276.15 60.54 331.09 € 67.25 m

* repowering up to 74 MW is planned to be commissioned during 2008. ** in 2004 “Altos del Voltoya, S.A.” acquired 17% of “P.E. Las Navas, S.A.”, with additional 48.84 MW in operation.

Wind Energy in Spain

2005

Wind Energy in Spain

2005 Current Statusand Prospects

R E N E W A B L E E N E R G Y

Wind Energy

Current Statusand Prospects

Madera, 8. E-28004 Madrid Tel.: +34 91 456 49 00. Fax: +34 91 523 04 14

e-mail: comunicacion@idae.es http://www.idae.es