OFFERING MEMORANDUM Global Offering of up to ... - Nordex

2006. The period of operation for these plants according to Section 7 paragraph 1 no. 1 of the EEG and
Section 7 paragraph 2 no. 2 of the EEG, is nine years.
According to Section 12 of the EEG, the Bundesministerium für Wirtschaft und Technologie (the Federal
Ministry of Economy and Technology) is required to issue a report to the German parliament on the
implementation of the Act by June 30 every second year following the implementation of the Act
(initially on June 30, 2002) in conjunction with other ministries. In particular, ministries must make
recommendations regarding any changes in payment methods to be taken into account from
technological developments and market developments for new plants. A change in payment rates is
possible by passing an amendment to the Act.
The transmission of electricity generated using wind turbines is generally unproblematic for plant
operators. This is because wind turbine operators are paid by grid operators for the electricity they
supply in line with the EEG, and they are not involved in the resale and marketing of electricity once it
has been fed into the grid. As a result, wind turbine operators do not therefore need to negotiate terms
for the transmission of wind generated electricity (this has been known to result in litigation). Wind
turbine operators will face this problem according to the EEG, if they decide not to supply electricity to
the grid in order to supply customers directly. In such exceptional circumstances, plant operators may
demand that grid operators transmit electricity in accordance with Section 6 of the
Energiewirtschaftsgesetz (EnWG – Energy Industry Act) and Section 19 (4) no. 4 of the Gesetz
gegen Wettbewerbsbeschränkungen (GWB – Act Against Restraints on Competition). Plant operators
are then required to pay grid operators for electricity transmission. In the majority of cases, this
method is not economically viable as electricity prices currently attainable are far below minimum
compensation rates prescribed by Section 7 of the EEG. Nevertheless, if electricity generated using wind
energy were to be subject to special marketing methods, for example as ‘‘green’’ electricity, in theory it
could be possible for the price achieved to be higher than from the amount currently prescribed by law
plus transmission fees.
Promotion in other countries
In other countries, in particular in Europe, legal regulations on electricity supply and the promotion of
renewable energy that are comparable or similar to German regulations already exist (e.g. in Spain) or
are being promulgated (e.g. in France). In some countries, generating electricity through wind energy is
also being promoted by a system of green certificates, which the wind turbine operators receive and
which they can sell to electricity suppliers, thereby enabling them to meet obligations to generate a
portion of the electricity they sell in an environmentally acceptable manner.
In Spain an act similar to the EEG exists (last amended in 1999), which requires electricity suppliers to
purchase electricity and to make payments at a level set by the state. The price of supply is adjusted in
line with changes in the price of electricity for end users, the price of oil, gas and interest rates. As a
consequence, the act resulted in a price level of ESP 10.43 per kWh in 2000, or approximately DM
0.123, and no changes are due in 2001.
In France, an act on supplying electricity to the grid, comparable to the EEG in Germany, is in the
process of being enacted. This act is scheduled to take effect in 2001, and prescribes a price of FRF 0.55
per kWh, or approximately DM 0.164, for supplying electricity to the grid for an initial period of five
years.
In the UK and Ireland, electricity generated from wind energy is promoted by a commitment by energy
suppliers to purchase a certain minimum quantity of electricity from renewable energy sources. A
purchasing organization representing energy suppliers organizes tenders for this purpose, which allow
technically certified wind farm projects that can supply cost-effective electricity to be selected; these
wind farms are awarded long-term electricity supply contracts. Because large areas of the UK and
Ireland that offer excellent wind conditions are environmentally protected areas (national parks),
developing wind farm projects is problematic, although a range of directives have been promulgated to
regulate and promote the planning of such projects.
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