REpower expects accelerated growth from the amended Renewable Energy Sources Act (EEG)
Hamburg (euro adhoc) -
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REpower Systems AG (WKN 617 703) welcomes the key points of the amendment of the Renewable Energy Sources Act (EEG) which was presented today by Mr. Gabriel, Federal Environment Minister of Germany. The Federal Environment Ministry´s examination of the EEG came to the conclusion that the current structure of the Act should be maintained and that individual regulations for an increase of efficiency must be adapted. REpower Systems AG estimates that especially the incentives for grid compatible onshore wind turbines as well as the increased start-up allowances for offshore wind turbines will result in sustainable stimulation of the German market.
Besides the additional remuneration of 0.7 eurocent per kilowatt hour (kWh) for turbines which can be integrated particularly well into the electricity grid due to their technical features, thus contributing to grid stability, there is in the area of onshore wind energy the prospect of a reduction of the annual degression from the current figure of 2% to 1% in the future.
For offshore wind energy use, the degression does not start as originally planned in 2008, but is to taken back to 2014. From 2008, the initial remuneration will be increased from 8.74 eurocent to 11-14 eurocent per KWH. In addition, the limitation in respect to the assumption of the grid connection costs by the grid operator is lifted. Currently the Energy Act (Article 118 Section 7) stipulates such an obligation only for offshore facilities where construction commences before 31 December 2011.
The final version of the Renewable Energy Sources Act report is to be released at the end of September and serves as the basis for an amendment of the act. It is anticipated that the new regulations will come into force from 1 January 2009. An exception here is the increasing feed-in remuneration for electricity from offshore wind parks which will take place from 2008.
Prof. Dr. Fritz Vahrenholt, CEO at REpower Systems AG, expects a positive impact from the amended EEG , "The planned changes make REpower wind turbines even more attractive. After all our products have always been considered as particularly compatible to grids. With the 0.7 cent per kWh bonus, our customers will benefit twice in the future for the high technological expertise of our company, something which is also reflected in the above-average availability of our turbines." In respect of the improvements in the area of offshore wind energy use, he added, "Once again it has been shown that we have the right positioning with the offshore REpower 5M turbine. It is now a question of securing the largest possible production capacity in order to be able to meet the demand we expect over the next few years."
REpower recently obtained the necessary approvals for establishing a production facility for nacelles for the offshore 5M turbine in Bremerhaven. In addition, REpower expects that the planning conditions for a second production hall in Rendsburg-Osterrönfeld (Schleswig-Holstein) will be created soon. At this site the onshore 3.3M turbine is to be manufactured.
end of announcement euro adhoc 05.07.2007 13:21:31
Further inquiry note:
Thomas Schnorrenberg
Investor Relations Manager
Telefon: +49(0)40-53930-723
E-Mail: t.schnorrenberg@repower.de
Branche: Alternative energy
ISIN: DE0006177033
WKN: 617703
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