This document summarizes a presentation about renewable energy communities in Germany, with a focus on community wind farms. It defines renewable energy communities and notes they are common legal forms in Germany like limited partnerships. Community wind farms are driven by policy support, investment security, and local benefits. The document uses a specific community wind farm in Neuenkirchen, Germany as a case study, outlining its technical details, community acceptance drivers, and lessons for policymakers to support community energy.

1. This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no
764717. The sole responsibility for the content of this presentation lies with its author and in no way reflects the views of the European Union.
Renewable energy communities
- good practice examples from Germany
Michael Krug
(Freie Universität Berlin,
Environmental Policy Research Centre)
WinWind Policy Roundtable/Thematic Workshop
Challenges of Policy and Social Acceptance for On-shore Wind Energy Development in Latvia
Riga, 25 April 2019

2. 1. Definition, context and drivers
2. Community Wind Farm in Neuenkirchen (Schleswig Holstein)
3. Key Lessons
Overview

3. Definition
Community energy means the economic and operational
participation and/or ownership by citizens or members of a
defined community in a renewable energy project (IRENA 2018).

4. Gross power production in Germany
1990-2017 in TWh, by source
Source: Clean Energy Wire, data: AG Energiebilanzen 2017, 2017 data preliminary

5. Ownership structure of installed renewable
power generation capacity, 2016
Source: Clean Energy Wire, Data: trend:research, AEE 2017

6. Community wind farms in Germany
• Common legal forms: limited partnerships, cooperatives
• Most common type: limited partnership in which the general partner is a
limited liability company (Gesellschaft mit beschränkter Haftung & Compagnie
Kommanditgesellschaft – GmbH & Co. KG)
➢ Hybrid of a limited liability company (GmbH/SIA) and a limited
partnership (KG)

7. Limited partnership with a limited
company as general partner
General partner
Limited company
(GmbH, SIA)
Limited partners
(liability limited to the partner´s capital
contribution
Limited partnership
Source: Hanus, Müller-Wrede & Partner

8. Socio-political acceptance

9. Community acceptance

10. Key drivers of community wind energy
• Favorable national policy framework and comparatively low market risks
• Guaranteed minimum remuneration via feed-in tariffs/premiums
(Renewable Energy Sources Act)
• Low market risks and high investment security: farmers, local communities,
and cooperatives to access finance and invest in wind energy projects.
• Region-specific driving factors
• Example Schleswig-Holstein
➢ Long standing tradition and high share of community wind farms
(80%)
➢ Traditionally high level of community acceptance

11. Drivers of community wind energy in
Schleswig-Holstein
• Favourable wind conditions
• Early attempts of pioneering farmers to become
energy autonomous (“wind farmers”, wind millers”)
• Structural weakness of the coastal regions and
rural depopulation
• Inspiration from early community wind projects in
Denmark
• Political commitment and continuous policy
support
• Early technology and industry development

12. Installed wind energy capacity per square
kilometer (2017, in kW)
Sources: Agentur für Erneuerbare Energien, BNetzA
2018a, Statistische Ämter des Bundes und der Länder,
Wikipedia

13. Context: Wind energy zoning
• Spatial plans are widely used to concentrate wind farm developments in designated
areas (e.g. priority areas or suitable areas for wind energy)
• Organisation of spatial planning varies among the 16 federal states
➢ Regional level: Regional plans
➢ Municipal level: Land-use plans
• Multi-step approach based on consecutive exclusion of „hard“ and „soft taboo
zones“

14. Multi step approach
1. Hard taboo zones
2. Soft taboo zones
Potential areas
(Potenzialfläche)
Priority zone
(Vorrangfläche)

15. This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no
764717. The sole responsibility for the content of this presentation lies with its author and in no way reflects the views of the European Union.
Community wind farm in
Neuenkirchen
(Schleswig-Holstein)

16. Neuenkirchen – regional context
• 1,035 inhabitants
• Location close to the North Sea coast
• Rural, peripheral region
• Low population density, large number of small
municipalities
• Flat, open, forest poor marsh landscape
• Intensive agricultural use
• Located in one of the wind energy pioneer regions of
Germany (Dithmarschen)
• Very high density of wind turbines
• Neuenkirchen is a latecomer regarding wind energy

17. Community wind farm Neuenkirchen
• Commissioned in 2015
• 12 x 3 MW Senvion turbines on 3 sites plus 1 x 3
MW Enercon turbine
• Total investment cost: 56.5 million EUR
• Initiators: local farmers, land owners
• 7 founding shareholders
• Financial participation of citizens (in total 145
shareholders as limited partners)
• Land lease pool model (Flächenpoolmodell)
• Benefit sharing via civic association
(Bürgerverein)
• http://www.buergerwindpark-
neuenkirchen.de/projekt/infos/

18. Key technical and economical data
Technical data
Manufacturer: Senvion SE (former REpower)
Type: 3.2 M 114
Nominal capacity: 12 x 3,200 kW
Rotor diameter: 114 m
Hub height: 93 m
Total height: 150 m
Setback distances
Distance to church: 2,000 m (historical heritage)
Distance to single houses: 450 m
Distance to settlements: 800 m
Economical data
Investment: 56.5 mEUR
Revenues (2017): 10.83 mEUR
Annual profit (2017): 5.13 mEUR
Business tax payments: 0.64 mEUR

19. Wind energy zoning

20. Chronology
Year Steps
Before 2008 Plans by local land owners to develop a community wind farm
2008 Municipal elections, change of mayor
2009 Council decision to propose wind energy suitable areas to the district administration
2009 Foundation of a local citizens’ group opposing the wind farm plans. Initiates local referendum
2009 → 1st referendum: rejects council decision
2011 Mayor and council initiate a 2nd referendum about the notification of 4 suitable areas
→ 2nd referendum positive
→ Council proposes to include 4 wind energy suitable areas in the regional plan
2012 Regional plan takes effect (designation of 3 of the 4 proposed suitable areas)
2013 Foundation of Bürgerwindpark Neuenkirchen UG & Co. KG
2014-2015 Construction works
2015 Commissioning of the plant
2016 Foundation of a civic non profit association (1% of the annual profits)

21. Active financial participation of citizens
• 20% of the total investment cost to be covered by equity capital (11 million EUR)
• Direct financial participation of citizens as limited partners
➢ Minimum deposit 500 EUR, maximum deposit 50,000 EUR
➢ No investor to own more than 25% of voting rights
➢ 145 citizens finally registered as limited partners (July 2014)
➢ Municipality obtained shares (20,000 EUR)
➢ Municipal councilors

22. Passive financial participation of citizens
Individuals
Land lease pooling model
➢ Land owners receive financial compensation for the use of their land
➢ 5% of the annual remuneration for the electricity fed into the grid
Land owner group Share
Land owners on whose land the turbines are installed 20%
All land owners in the wind energy suitable zone 70%
Owners of land used for road transport and other infrastructure measures 10%
Community
➢ Benefit sharing via a civic non-profit association (Bürgerverein)
➢ Agreement: 1 % of annual profit flow to a association
➢ Association receives donations also from other local organizations
➢ Revenues used to purchase community bus, PC equipment for school, construction of
community building, etc.

23. Passive financial participation (II)
Community level
➢ Community business tax revenues (Gewerbesteuer) (2017: 640,000 EUR)
Other benefits
➢ Compensation/mitigation measures nature and landscape effects
➢ Monetary compensation to offset negative landscape impact
➢ Problem: revenues are often not used locally, but regionally, only limited local
benefits

24. Acceptance drivers
Formal and informal
participation of citizens and
municipalities in zoning,
planning and permitting
Transparent information
disclosure by the project
initiators
Trustworthiness of initiators
Municipality as "leader by
example"
Mayor as facilitator/mediator
Community
Acceptance

25. Acceptance drivers (II)

26. Lessons for policy
• Supportive policy framework
• Ensure calculability for investors, reduce market risks
• Create opportunities for active and passive financial participation of citizens
• Enabling framework for community energy (see also RED II!), e.g. seed money facilities
• Promote awareness raising and training for municipalities
• Promote pilot projects, disseminate good practices
• Ensure procedural participation of citizens
• Support municipalities and communities by providing neutral information

27. Liels paldies
par Jūsu uzmanību!

28. This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no
764717. The sole responsibility for the content of this presentation lies with its author and in no way reflects the views of the European Union.
winwind-project.eu
info-winwind@PolSoz.FU-Berlin.de
@winwind_eu
WinWind Project
Michael Krug, FU Berlin, mail: mikru@zedat.fu-berlin.de

29. Additional slides

30. Definition of „renewable energy community“
(a) which, in accordance with the applicable national law, is based on open and
voluntary participation, is autonomous, and is effectively controlled by
shareholders or members that are located in the proximity of the renewable energy
projects that are owned and developed by that legal entity;
(b) the shareholders or members of which are natural persons, SMEs or local
authorities, including municipalities;
(c) the primary purpose of which is to provide environmental, economic or social
community benefits for its shareholders or members or for the local areas where it
operates, rather than financial profits.
Renewable Energy Directive (EU) 2018/2001, Art. 2,16
Renewable energy community’ means a legal entity:

31. Quantitative targets of the German
Energiewende

32. Share of energy sources in gross German
power production in 2017
Source: Clean Energy Wire, data: AG Energiebilanzen 2017, 2017 data preliminary

33. Composition of average electricity prices in
€ct/kWh for German households*, 2006-2018
* Annual electricity consumption of 3,500 kWh
Source: Clean Energy Wire, Data: BDEW 2017

34. Auctions: Average rates (volume weighted)
Tender
Date
Type of
installation
€ct/
kWh
Highest
successful bid
Lowest
successful bid
5/2017 Wind onshore 5,71 5,78 5,25
8/2017 Wind onshore 4,28 4,29 4,16
10/2017 Wind onshore 3,40 3,82 2,20
2/2018 Wind onshore 4,73 5,28 3,80
5/2018 Wind onshore 5,73 6,28 4,65
8/2018 Wind onshore 6,16 6,30 5,30
10/2018 Wind onshore 6,26 6,30 6,12

35. Percentage of average annual electricity
demand covered by wind, 2017

36. Context: Key responsibilities
Federal level • Overall strategy, framework setting
• National support scheme
• Framework for Authorization/Permitting
(BImschG)
• Environmental Impact Assessment
Renewable Energy Sources Act
(EEG)
Federal Pollution Control Act
(BImSchG)
Federal state
level
• Complementary support schemes
• Spatial planning, designation of wind
suitable/priority zones
Regional level • Spatial planning, designation of wind
suitable/priority zones
District level • Permitting/authorization („One stop shop“)
Municipal
level
• Spatial planning, designation of
„concentration zones“
• Participation in permitting/authorization
(consent)

37. Types of financial participation of citizens
in the operation of wind farms
Active participation of citizens
Direct
• Citizens as owners/shareholders of the plants (e.g. co-
operative, limited liability company, limited partnership,
other legal forms etc.)
Indirect • Citizens as creditors/lenders
Source: Energieagentur Nordrhein-Westfalen 2014

38. Types of financial participation of citizens
in the operation of wind farms (II)
Passive participation of citizens
Level of
individuals
• Land lease payments for land owners
• Land lease bonus payments for local residents
• Special electricity tariffs for local residents
Community level
• Community foundations/trusts, community associations
• Compensation payments for the community
• In-kind benefits for the community
• Municipality as shareholder/owner of the plant
• Tax revenues from the operation of wind plants
Source: Energieagentur Nordrhein-Westfalen 2014

39. Selected exclusion criteria
in Mecklenburg-Vorpommern
Source: Hoffmann, G., Mossbauer, M., and Grünes, J. 2017, Ministry of Energy, Infrastructure and Digitalization
Mecklenburg-Vorpommern; Landt, C.C., Kjaer, T. (2018).
1 Residential areas with setback distances
2 Priority areas according to Spatial
Development Programmes
3 Landscapes under protection
4 Forests and waters
5 Protected areas according to the Nature
Conservation Act
6 Breeding sites for bird with setback
distances
7 Areas with building restrictions

40. Levels of social acceptance
Forms Acceptance object Acceptance subject
Socio-
political
acceptance
RES-technology in
general, Renewable
Energy Legislation,
„Energiewende“
General public,
political decision
makers etc.
Community
acceptance
Concrete RES projects,
grid projects
Local population and
local communities;
local politicians,
stakeholders, etc.
Market
acceptance
RES-“products“ or
services (e.g. wind
turbines, RES based
electricity)
Investors, consumers,
etc.
Source: based on Wüstenhagen et al. 2007, Forschungsgruppe Umweltpsychologie 2008, Wunderlich/AEE 2012
Socio-political
(of technologies
and policies, by
the public,
stakeholders
and policy-
makers)
Community
(procedural and
distributional
justice, trust)
Social
acceptance
Market
(consumers,
investors, intra-
firm)

41. Forms of acceptance
Source: adapted from Hildebrandt 2018, Zoellner, Rau &
Schweizer-Ries 2009
Action
Passive Active
Assessment
Positive
SUPPORT
INDIFFERENCE
SUPPORT/
ENGAGEMENT
Negative
TOLERATION
REJECTION
RESISTANCE/OPPOSITION
(70,7%) (10,8%)
(15,3%)
(3,2%)

42. Diminishing local acceptance
• In recent years hundreds of anti-wind initiatives were founded.
• Effective networking and professionalization
• National association "Vernunftkraft”
• Association speaks of 900 citizens’ initiatives in the association. This number is
controversial, some experts consider approximately 500 citizens' initiatives realistic.
• Populist parties try to ride the protest (e.g. AfD very active in East Germany)
https://muehlhausen.thueringer-
allgemeine.de/web/muehlhausen/startseite/detail/-/specific/Mit-
dem-Windpark-waechst-die-Wut-1536121245

43. The dimension of dissent
Local initiatives Regional initiatives
https://www.windwahn.com/karte-der-
buergerinitiativen

44. Inakzeptanz/Akzeptanz-Skala
Inakzeptanz
Stufe 1 Stufe 2 Stufe 3 Stufe 4 Stufe 5 Stufe 6 Stufe 7 Stufe 8
Aktive
Gegner-
schaft
Ablehnung Zwiespalt Gleich-
gültigkeit
Duldung Konditio-
nale
Akzeptanz
Zustim-
mung
Engage-
ment
Akzeptanz
Quelle: Sauer et al. 2005

46. Recommended setback distances for
wind turbines in spatial planning
Category
Region/
federal state
Responsibility for
designating
priority/suitability
zones
Setback distances for
residential areas
Setback distances for
individual dwellings,
splinter settlements
Target
region
Thuringia
Regional Planning
Associations
Turbines <150m: 750 m
Turbines >150m: 1,000 m
600 m
Target
region
Saxony
Regional Planning
Associations
No uniform setback
distances
No uniform setback
distances
Model
region
Brandenburg
Regional Planning
Communities
1,000 m
1,000 m
(lower distances
possible)
Model
region
Schleswig-
Holstein
State Planning
Authority (state level)
800 m
(planned: 1,000 m)
400 m
(planned: 500 m)

47. Timeline of average ENERCON wind
turbines sizes