The Great Lakes Zephyr - Wind Energy & Hydrogen Journal

Alt Power Digest group at Yahoo Groups just came across with a great write:

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All-Energy News and Discussion
http://groups.yahoo.com/group/All-Energy

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Message: 1
Date: Thu, 21 Aug 2003 14:03:15 -0400
From: Tom Gray
Subject: Good Clip on Germany

Germany Leads the World in Alternative Energy
By JANET L. SAWIN New Internationalist (08-19-03)

Berkeley Daily Planet
Edition Date: Tuesday, August 19, 2003

Clusters of tall white wind turbines spin gracefully atop green hillsides.
Solar photovoltaics (PVs) are integrated into windows and rooftops of
modern homes, factories and office blocks. Even the old renovated seat of
government is fitted with solar panels.

A utopian fancy? No, just Germany today. Remarkable considering that in
1990 Germany had virtually no renewable-energy industry and appeared an
unlikely candidate for it. Utility monopolies, entrenched nuclear and coal
industries and a general conservatism made Germany appear barren ground for
renewable-energy advocates.

Joschen Twele, a wind-energy expert recalls: 'When I started my job in wind
energy [in the 1980s] I thought it had only a chance in remote areas of
developing countries. So I concentrated on Africa.'

Yet by the end of the 1990s, Germany had transformed itself into a
renewable-energy leader. With a fraction of the wind and solar resources of
the U.S., Germany now has almost three times as much installed wind
capacity (38 percent of global capacity) and is a world leader in solar
photovoltaics as well.

And it has created a new, multibillion-dollar industry and tens of
thousands of new jobs. The German wind industry now employs more people
than nuclear power (an industry that provides 30 percent of the nation's
electricity) without a commensurate increase in electricity costs.

Germany now generates 4.5 per cent of its electricity with the wind and
appears on track to meet government targets of 25 per cent by 2025. The
government also considers solar photovoltaics an option for future
large-scale power generation.

What's more, the government recently pledged to reduce its carbon dioxide
emissions to 40 percent below 1990 levels by 2020, much of this to be
achieved by switching to renewable energy. Not quite the 60 percent many
climate-change experts say is required worldwide, but vastly more
impressive than commitments made thus far under the Kyoto Protocol.

How has Germany done it?

The main obstacles that keep renewables from producing more than a small
share of energy in most of the world are lack of access to the transmission
grid, high up-front costs, lack of information, and biased, inappropriate
and inconsistent government policies.

Germany's dramatic success has been achieved through a combination of
consistent, ambitious policies designed to address these barriers and
create a market for renewable energy. These policies were driven by the
public's rising concerns about global climate change, risks associated with
nuclear power, and a need to reduce dependence on imported fuels.

Most significant has been the grid access and standard pricing law, enacted
in 1991 and inspired by effective Danish policies. Under this law,
renewable energy producers receive above-market payments for power they
feed into the grid and the costs are shared among all electricity consumers
in Germany. These preferential payments for renewables are not considered
subsidies, but means of internalizing the social and environmental costs of
conventional energy and providing compensation for the benefits of renewables.

But some barriers remained. For example, as the number of wind turbines
skyrocketed in some regions, local opposition and lengthy, complex siting
procedures had the effect of stalling the development of new projects. The
government responded by encouraging communities to zone specific areas for
wind energy--a step that addressed concerns such as noise and aesthetic
impacts and assured prospective turbine owners that they would find sites
for their machines.

To address the start-up costs barrier, the German government has offered
long-term, low-interest loans and income tax credits to projects and
equipment that meet specified standards.

These initiatives have drawn billions of dollars to the renewable energy
industry, while technology standards have reduced risk and created
confidence by keeping out substandard machinery. The government has also
promoted awareness of renewable technologies and available subsidies
through publications and training programs.

Such rock-solid policies ended uncertainties about whether producers could
sell their electricity into the grid and at what price. They also provided
investor confidence--attracting investment money and making it easier for
even small renewable power producers to obtain bank loans. Germans from
diverse backgrounds and income levels have been able to invest in renewable
energy projects, leading to a surge in installed capacity and associated
jobs, and reinforcing political support.

Increased investment has also driven improvements in technology, advanced
learning and experience, and produced economies of scale resulting in
dramatic cost reductions. Between 1990 and 2000 the average cost of
manufacturing wind turbines in Germany fell by 43 percent. Between 1992 and
2001, PV capacity experienced an average annual growth rate of nearly 49
percent. German PV manufacturers plan to expand their facilities
significantly over the coming years to meet rapidly rising demand, a step
that will further reduce costs and increase employment.

Germany has demonstrated not only that it is possible for renewable energy
increasingly to meet the energy needs of industrialized society but also
that the transition to a more sustainable energy future can happen rapidly
with political will and the right policies. To begin with, policies must be
consistent and long-term. On-and-off policies in the US have created market
cycles of boom and bust, making it difficult to develop strong domestic
industries. As a result, the U.S. is the only country where total
wind-generating capacity has actually declined in some years.

Market creation must also be prioritized. Germany began funding research
and development of renewable energy in the 1970s but saw little commercial
development until market incentives were enacted two decades later. Today
at least 300 companies are involved in supplying solar panels. Last year
Germans installed more than 2,000 new wind projects, all of them feeding
into the grid. It is estimated that more than 100,000 Germans own shares in
wind energy projects, while many own shares in solar PV and other renewable
projects as well.

The issue of who owns the production and distribution of electricity is
highly significant. When a nation's electric system is centralized and
utility-owned, power is concentrated in the hands of a few, both literally
and politically. In the U.S., for example, some of the most politically
powerful voices are those of the various energy-related industries. But
when almost anyone can be an energy producer, as in Germany, the public can
play a greater role in decision making, creating a more democratic society.

Renewables now generate eight percent of Germany's electricity and the
country has nearly two-fifths of the world's wind capacity. But the share
of total wind capacity owned by large companies is also rising, as the
sizes of machines and projects--and thus costs--increase.

The advantages of shifting away from conventional energy and towards
greater reliance on renewables are numerous and enormous: climate
stability, air quality, health, job creation, political and economic
security, to name but a few. Renewable energy also offers models for
diverse and democratic ways of producing, buying and selling power. Yet
change is never easy and there are strong forces globally--including
politically powerful industries--that wish to maintain the status quo.
While resistance to change is inevitable, the world cannot afford to be
held back by those who are wedded to energy systems of the past.

Janet L Sawin is an energy and climate change writer and researcher based
at the Worldwatch Institute in Washington DC.