Economics and employment drive German leadership

 

Wind power development has been supported in Germany by national legislation since 1991. Successive versions of the Renewable Energy Sources Act (Erneuerbare Energien Gesetz, EEG) have encouraged all renewables through a premium payment (feed-in tariff) for their electricity output. This has enabled Germany to develop a large capacity of solar, geothermal, hydro and bio-energy plants, as well as wind farms.

 

The latest version of the EEG, introduced at the beginning of 2009, pays a special tariff for ‘repowering’ schemes like the one at Marienkoog. Wind turbines more than ten years old can be replaced, as long as their rated capacity is more than doubled.

 

This encouraged 240 local people to invest in the Galmsbüll Bürgerwindpark, of which Marienkoog is part. The minimum investment was €2,500 and the maximum €45,000. With excellent wind speeds in its first years of operation, the project has already provided them with a good return.

 

The German Renewable Energy Association (BEE) has calculated that the payments made to renewable energy projects under the EEG have an overall beneficial effect on the economics of power supply in Germany. By 2020, it estimates, EEG payments of €2.4 billion would be dwarfed by the €22.6 billion saved by avoiding the expensive import of fossil fuels. This is based on the assumption that by then all renewable energy sources could be supplying 47% of Germany’s electricity.

 

Germany has also benefited from a boom in wind energy equipment manufacture, with many large suppliers of turbines and other components. The sector currently employs close to 100,000 people, including a large work force serving the growing export industry for wind energy equipment and components. By 2020, if wind power expands to its expected level of 55 GW of installed capacity, the number of jobs could more than double.

 

For all renewable energy sources, the BEE projects the number of jobs available in the industry by 2020 as 500,000.