Germany’s Green Energy Policy
Germany has an interesting history of controversy surrounding energy sources. For Germans, Wyhl, Waldsterben, and Chernobyl, call to mind past controversy about energy supply (especially nuclear) and the option of renewability. Along with the first and second oil crises the nation faced, these incidents gave Germany the push it needed to begin to seriously look into renewable energy resources. Since, Germany has been making growing efforts towards finding and implementing more sustainable forms of energy focusing largely on electricity.
In 1974 the German federal government launched a plan to research alternate sources of energy. This begun with the failed GROWIAN project through which a single, 3MW wind turbine was attempted to be built. As I stated before this was a failed effort that lead the government to develop the turbine on a smaller scale, a decision which produced successful results. Some of the most recent turbines are over 1500kW and that number is growing.
In 1991 the government introduced a 250MW incentive for generators of wind energy. Accoring to Wüstenhagen and Bilharz, generators were required to take part in a new program which was to create a new database on how wind turbines in Germany were to operate called the Scientific Measurement and Evaluation Programme (WMEP). Subsidies, loans, and tax incentives also became available for investment support.
But what is at the root of Germany green energy policy is the Erneuerbare-Energien-Gesetz (EEG) or, for English speakers, the renewable energy law of 2000 and amended law of 2004. The act had three main functions or principles:
1. Each generated kW/H from renewable energy gets a feed-in tariff. A guaranteed 20 yr payment is given to renewable plant operators. Anyone producing renewable energy can sell it for a 20 yr fixed price
2. German consumers who use renewable energy pay for it through their electricity bill; Germany’s “public purse” is not charged
3. Rates of payment for the new plants decrease periodically; over time technology will be more efficient and less costly
As a result of all of Germany’s effort to development more renewable energy, there have been over 13,000 MW of new wind capacity between the years 1991 and 2003. Because of its overall success in this, Germany can serve as a model to nations who resist making the change.
UPDATE:
Germany’s phase-out of nuclear energy has proven to be too effective and German consumers taking the biggest hits. Germany currently has the second highest power prices in Europe.
The cost of electricity has shot up and now the average German pays what is $181 a year and that number is set to increase 38% by 2013.
However, Germany remains a leader in renewable energy research and implementation. The country continues to make strides, and despite setbacks and current obstacles is reaping the benefits of its renewable energy policy.
For a more in-depth look into Germany’s green energy policy and the strides and losses made, please refer to the following sources which were used to obtain the information presented in this blog post:
Wüstenhagen, Rolf, and Michael Bilharz. “Green Energy Market Development In Germany: Effective Public Policy And Emerging Customer Demand.” Energy Policy 34.13 (2006): 1681-1696. GreenFILE. Web. 30 Sept. 2012.
And good ole WikiPedia
http://en.wikipedia.org/wiki/Renewable_energy_in_Germany
http://en.wikipedia.org/wiki/German_Renewable_Energy_Act
UPDATE information from:
Schultz , S. (2012, August 29). Power failures: Germany rethinks path to green future. Spiegel Online International. Retrieved from http://www.spiegel.de/international/germany/problems-prompt-germany-to-rethink-energy-revolution-a-852815.html