Since even before the 20th century, the people of Germany as a whole have been known as some of the world’s most efficient workers; resulting in a country with incredible infrastructure, economic output, and stability (post World War II of course). The German work ethic has reflected on their international exports of high quality manufactured goods despite the high cost of production due to quality goods and high labor costs. Another example would be the ever popular german transit systems; they’re always on time! . It should be of no surprise that the German people have once again set the bar very high for the rest of the world when it comes to energy production, and even how clean or ‘green’ it is. With smart management of resources and how they are allocated, the Germans have used governmental influence to help create and sustain lower and cleaner energy costs that have produced a successful system for the past 20+ years, with hopes to phase out all forms of nuclear energy (unlike their French counterparts; a leader in world nuclear energy) (1).
Many other nations can learn from the Germans and how they created so much renewable resources in the past decade, jumping to around 20+ percent of all energy used in Germany; however many other nations can also learn from the flaws within the German’s plan and how they acted on it right down to the bare bones of the legislation itself.
The best criticism I can offer is a critique on the German’s Renewable energy act in 2000. Heck, I’d go to the general method of promotion for the energy policy was flawed from the beginning; it used government influence and power to hand out contracts to companies to build on the renewable energy of the country, while promising the German people no charge for it (in tax increases). How can the government spend money without having the tax payers pay for it? Shift the costs to someone else! The idea of heavy regulation on those who use or produce polluting energy methods would help deflate the cost, though the main source of cost would be covered by specific Tariffs which keep green energy companies locked in via long-term contracts. (2)
Still wondering where the problem is? Ask the German people themselves. Acorrding to the Wall Street Journal:
“A growing rift over the direction of German energy policy triggered a European competition inquiry … as a union of more than 13,000 households and small businesses in the country complained that current legislation unfairly favors large industrial energy consumers. The European Union’s antitrust authorities said they are looking at whether exempting large German industries from paying the cost of subsidizing renewable energy violates EU rules prohibiting state aid to business, following a complaint from Bund der Energieverbraucher, a pressure group representing small energy users.”
Well well well, that could certainly be a problem, huh? While Germany isn’t exactly the shining example of free-market capitalism in the world (in fact, they are a perfect example of functioning corporatism), this a no-no for advocates of free markets. A true free market does not have the government play favorites with companies by giving tremendous tax breaks (also including breaks from their tariff program explained earlier) and playing favorites with the government’s energy contractors. The interference listed before is far from a genuine free market, which prevents smaller innovators from producing their own results…which if we read our economics 101 textbooks, DRIVES DOWN COSTS. With shelter and protection for big companies in this respect, the cost for the German consumer will only keep going up.
Is the previous statement truth? Further evidence suggests this is indeed the case:
“The costs are effectively paid for by electricity consumers through a surcharge on their power bills. Retail power prices also include charges for power-grid usage as well as taxes on electricity…[Germany] promotes renewable energy by granting fixed prices for the electricity that facilities such as wind- and solar-power plants produce … But energy-intensive industries have been freed from paying most of these levies, including exemptions for grid fees and the payment of energy taxes. Altogether, the heavy industries are relieved of around €9 billion in costs per year … The rapid expansion of renewable energies is widely seen as the main driver of rising energy prices in Germany, triggering a barrage of criticism from consumer groups.” (3)
Want more proof? Here is a report from Canada Free Press:
“Many people in Germany are no longer able to pay their electricity bills. Skyrocketingelectricity prices are making electricity unaffordable for a large number of Germans. The past year over 600,000 households had their power switched off in Germany because they can’t afford the skyrocketing electric bills…he upward trend in electricity pricesin Germany has continued unabated in the first half of 2012.” (4)
Why on earth would I write a blog trashing the policy of another countries clean air and renewable energy aspirations? Here is why: I hope all who read can take a more critical look at energy policies brought upon us by our administration and future ones here in the United States by sticking to smarter economic principles and guidelines. That way, the consumers (us) can still afford it and hopefully have a wider range of choices for clean energy in the coming years instead of one very expensive corpro-government alliance that breaks the average americans wallet both on pay day and bill day. It can very well happen to you; it’s happening right across the Atlantic in a country responsible for the financial future of almost the entire continent of Europe!!
Americans are the #1 nation for innovation and enterprise of anyone and everyone….I would hope we do not simply shove that aside for the sake of cleaner energy without first taking a step back and coming up with a solution that makes economical sense. Germany’s issues are systemic, in that their economic structure revolves around their own version of capitalism in which companies are sheltered and protected by the government….successfully so thanks to a high demand internationally for their Mercedes, BMWs, and BlauPunkt sound systems. We Americans love to consume…..too much in fact! The issues with us are very much different but no less dangerous if legislation is rushed in and forced upon us without a good amount of time to review the costs associated with an update into the 21st century for energy. I do not deny the long-term costs going down on renewable energy…..but the way in which these energy sources are put in should be just as important as how important they are to our environmental future!
In short, how do we fix this? Short answer is this: let the free market do its job unopposed. We as Americans are brilliant enough to have a guy or gal one day come up with an idea in their garage that can change the world (Bill Gates, Steve Jobs, etc)….let us encourage that!
sources:
1) http://www.spiegel.de/international/crossing-the-20-percent-mark-green-energy-use-jumps-in-germany-a-783314.html
2)http://en.wikipedia.org/wiki/German_Renewable_Energy_Act#Founding_of_the_German_Renewable_Energy_Act
3)http://online.wsj.com/article/SB10001424127887323751104578149144050909144.html
4)http://www.canadafreepress.com/index.php/article/47243