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Renewable energy development – the rational German example

Oh, the beauty of a system that is easy to understand and predictable……

Germany Shows How Renewable Energy Should Be Done, Daily Finance, ByTravis Hoium, The Motley Fool 08/01/11   Germany is doubling its efforts to be a renewable-energy power over the next 50 years, and it’s expanding beyond just solar power. After the country put thekibosh on exploding solar installationsby cutting feed-in tariffs (FIT), it has increased the FIT for biomass, geothermal, and offshore wind while simplifying solar rates. The wet blanketcurrently covering the German nuclear industrymeant the country needed to find a way to push renewable-energy installations to meet national renewable-energy goals before plants began closing.

Renewable energy beyond solar
The rates for biomass, geothermal, and offshore wind will be increased significantly in 2012 to encourage development of these sources.

General Electric(NYS:GE) ,Siemens(NYS:SI) , andVestas Wind Systemswill be the major beneficiaries of a growing offshore wind market that isjust starting to take off worldwide.

Unlike in the United States, where rates are negotiated in power-purchase agreements, Germany has adopted an across-the-board payment system for renewable-energy projects. That gives developers more certainty than going through the convoluted process in the United States…..

A government system that makes sense?

For solar, in what appears to be a very logical system (U.S. legislators, please take note), Germany has provided a target amount of solar power to be installed each year set at 3,500 MW. If that target is exceeded, the FIT is reduced more than a base of about 9%, and if installations fall short the feed-in tariff is cut less than planned. Oh, the beauty of a system that is easy to understand and predictable……

August 2, 2011 - Posted by Christina Macpherson | Germany, renewable