[Culturechat] Fwd: [Energyforum] Good Clip on Germany
WesTexas@aol.com
WesTexas@aol.com
Thu, 21 Aug 2003 15:50:02 EDT
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(We desperately need to increase the supply of electricity from windpower.
Among other reasons, China's demand for oil is skyrocketing. Their imports
are currently doubling every 2.5 years. Fairly soon, oil consumers are going
to have to start bidding against each other remaining oil supplies).
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Date: Thu, 21 Aug 2003 14:03:15 -0400
Subject: [Energyforum] Good Clip on Germany
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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.=20
Solar photovoltaics (PVs) are integrated into windows and rooftops of=20
modern homes, factories and office blocks. Even the old renovated seat of=20
government is fitted with solar panels.
A utopian fancy? No, just Germany today. Remarkable considering that in=20
1990 Germany had virtually no renewable-energy industry and appeared an=20
unlikely candidate for it. Utility monopolies, entrenched nuclear and coal=20
industries and a general conservatism made Germany appear barren ground for=20
renewable-energy advocates.
Joschen Twele, a wind-energy expert recalls: 'When I started my job in wind=20
energy [in the 1980s] I thought it had only a chance in remote areas of=20
developing countries. So I concentrated on Africa.'
Yet by the end of the 1990s, Germany had transformed itself into a=20
renewable-energy leader. With a fraction of the wind and solar resources of=20
the U.S., Germany now has almost three times as much installed wind=20
capacity (38 percent of global capacity) and is a world leader in solar=20
photovoltaics as well.
And it has created a new, multibillion-dollar industry and tens of=20
thousands of new jobs. The German wind industry now employs more people=20
than nuclear power (an industry that provides 30 percent of the nation's=20
electricity) without a commensurate increase in electricity costs.
Germany now generates 4.5 per cent of its electricity with the wind and=20
appears on track to meet government targets of 25 per cent by 2025. The=20
government also considers solar photovoltaics an option for future=20
large-scale power generation.
What's more, the government recently pledged to reduce its carbon dioxide=20
emissions to 40 percent below 1990 levels by 2020, much of this to be=20
achieved by switching to renewable energy. Not quite the 60 percent many=20
climate-change experts say is required worldwide, but vastly more=20
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=20
share of energy in most of the world are lack of access to the transmission=20
grid, high up-front costs, lack of information, and biased, inappropriate=20
and inconsistent government policies.
Germany's dramatic success has been achieved through a combination of=20
consistent, ambitious policies designed to address these barriers and=20
create a market for renewable energy. These policies were driven by the=20
public's rising concerns about global climate change, risks associated with=20
nuclear power, and a need to reduce dependence on imported fuels.
Most significant has been the grid access and standard pricing law, enacted=20
in 1991 and inspired by effective Danish policies. Under this law,=20
renewable energy producers receive above-market payments for power they=20
feed into the grid and the costs are shared among all electricity consumers=20
in Germany. These preferential payments for renewables are not considered=20
subsidies, but means of internalizing the social and environmental costs of=20
conventional energy and providing compensation for the benefits of renewable=
s.
But some barriers remained. For example, as the number of wind turbines=20
skyrocketed in some regions, local opposition and lengthy, complex siting=20
procedures had the effect of stalling the development of new projects. The=20
government responded by encouraging communities to zone specific areas for=20
wind energy--a step that addressed concerns such as noise and aesthetic=20
impacts and assured prospective turbine owners that they would find sites=20
for their machines.
To address the start-up costs barrier, the German government has offered=20
long-term, low-interest loans and income tax credits to projects and=20
equipment that meet specified standards.
These initiatives have drawn billions of dollars to the renewable energy=20
industry, while technology standards have reduced risk and created=20
confidence by keeping out substandard machinery. The government has also=20
promoted awareness of renewable technologies and available subsidies=20
through publications and training programs.
Such rock-solid policies ended uncertainties about whether producers could=20
sell their electricity into the grid and at what price. They also provided=20
investor confidence--attracting investment money and making it easier for=20
even small renewable power producers to obtain bank loans. Germans from=20
diverse backgrounds and income levels have been able to invest in renewable=20
energy projects, leading to a surge in installed capacity and associated=20
jobs, and reinforcing political support.
Increased investment has also driven improvements in technology, advanced=20
learning and experience, and produced economies of scale resulting in=20
dramatic cost reductions. Between 1990 and 2000 the average cost of=20
manufacturing wind turbines in Germany fell by 43 percent. Between 1992 and=20
2001, PV capacity experienced an average annual growth rate of nearly 49=20
percent. German PV manufacturers plan to expand their facilities=20
significantly over the coming years to meet rapidly rising demand, a step=20
that will further reduce costs and increase employment.
Germany has demonstrated not only that it is possible for renewable energy=20
increasingly to meet the energy needs of industrialized society but also=20
that the transition to a more sustainable energy future can happen rapidly=20
with political will and the right policies. To begin with, policies must be=20
consistent and long-term. On-and-off policies in the US have created market=20
cycles of boom and bust, making it difficult to develop strong domestic=20
industries. As a result, the U.S. is the only country where total=20
wind-generating capacity has actually declined in some years.
Market creation must also be prioritized. Germany began funding research=20
and development of renewable energy in the 1970s but saw little commercial=20
development until market incentives were enacted two decades later. Today=20
at least 300 companies are involved in supplying solar panels. Last year=20
Germans installed more than 2,000 new wind projects, all of them feeding=20
into the grid. It is estimated that more than 100,000 Germans own shares in=20
wind energy projects, while many own shares in solar PV and other renewable=20
projects as well.
The issue of who owns the production and distribution of electricity is=20
highly significant. When a nation's electric system is centralized and=20
utility-owned, power is concentrated in the hands of a few, both literally=20
and politically. In the U.S., for example, some of the most politically=20
powerful voices are those of the various energy-related industries. But=20
when almost anyone can be an energy producer, as in Germany, the public can=20
play a greater role in decision making, creating a more democratic society.
Renewables now generate eight percent of Germany's electricity and the=20
country has nearly two-fifths of the world's wind capacity. But the share=20
of total wind capacity owned by large companies is also rising, as the=20
sizes of machines and projects--and thus costs--increase.
The advantages of shifting away from conventional energy and towards=20
greater reliance on renewables are numerous and enormous: climate=20
stability, air quality, health, job creation, political and economic=20
security, to name but a few. Renewable energy also offers models for=20
diverse and democratic ways of producing, buying and selling power. Yet=20
change is never easy and there are strong forces globally--including=20
politically powerful industries--that wish to maintain the status quo.=20
While resistance to change is inevitable, the world cannot afford to be=20
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=20
at the Worldwatch Institute in Washington DC.
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