Renewable energy lobbyists on Wednesday held a press conference to warn that the failure of Congress to extend a key financial incentive would be disastrous for the solar and wind industries. At the same time, IDC, a research firm, released a report predicting that the North American photovoltaic market will double in 2011.
Germany’s Greens party are already the world’s most successful environmental party – having spent seven years in government of one of the world’s largest economies as junior coalition partners to the centre-left Social Democrats. The Greens wrote Germany’s renewable energy law that helped the country become a major player in wind and solar energy technology between 1998 and 2005 — and the party is chiefly responsible for raising the share of renewable energy to 16 percent of the country’s total electricity consumption.
– Michael Brune is Executive Director of the Sierra Club, the largest grassroots environmental organization in the United States and author of Coming Clean: Breaking America’s Addiction to Oil and Coal. –
Chinese solar power companies have shone amid the downturn in the solar industry, converting their low cost advantage into bigger market share and profits.
from The Great Debate UK:
- Juliet Davenport is founder and CEO of Good Energy, a renewable electricity supplier. She is unique in being the only female founder in the UK of an energy supply business, traditionally a male-dominated sector. The opinions expressed are her own. Reuters will host a "follow-the-sun" live blog on Monday, March 8, 2010, International Women's Day. Please tune in. -
Will Germany kill the goose laying the golden eggs?
Germany is understandably proud of its renewable energy sector — wind and solar power supply more than 15 percent of the country’s electricity. Its Renewable Energy Act (EEG) has fuelled its rapid growth over the past decade and been copied by more than 40 countries around the world.
But is the party over?
A new centre-right government announced plans to slash the EEG’s guaranteed feed-in tariffs (FIT) that utilities are required to pay the myriad of producers of solar energy, many of whom feed the modest amounts of solar power from their roofs into the local grid. The EEG already foresees a FIT decline of about 10 percent per year — a built-in incentive to keep overall costs falling.
Environment Minister Norbert Roettgen wants an additional 15 percent cut in April on top of the 10 percent from Jan. 1, 2010 and ahead of the next 10-percent cut on Jan. 1, 2011. In the past decade, the previous two environment ministers from the Greens party and the centre-left Social Democrats (SPD) worked closely with the solar industry before making changes.
Roettgen made it clear those days of compromise were over. He said he spoke to solar firms last week before proposing the cuts, but rejected their offer to a one-off mid-2010 cut of 5 percent. “This is not a compromise,” he told journalists in Berlin on Wednesday. “It’s a bullseye.” He said the cuts would save consumers about 1 billion euros a year over the next decade. Consumer groups and some industry groups had wanted deeper cuts, Roettgen noted.
Solar companies in Germany, which have until now worked closely with the government on reducing the tariffs the utilities pay to producers of green electricity, criticised the cuts which amount to about 35 percent within 13 months. They fear they will cripple the sector and kill jobs. Roettgen said he wants solar power, which now generates about 1 percent of Germany’s electricity, to be providing 4 to 5 percent by 2020 even though the support is being slashed by one-third in the course of 13 months. He portrayed the cuts as if he were doing the industry a favour.
Several leading German companies — such as SolarWorld, Q-Cells and Solon — said there were dark days ahead for the solar industry. They pointed out that prices, and support, were already falling steadily and would reach grid parity by the middle of the decade. Why, they asked, ruin a good thing? Frank Asbeck, CEO of Germany’s biggest solar company by revenue SolarWorld, called the plans unacceptable. As my colleague Christoph Steitz reported here, the cuts would cause problems for solar companies around the world.
Carsten Koernig, managing director of the BSW solar industry lobby, said “a radical cut like that will rob German companies of the foundation for business”.
Claudia Kemfert, an energy policy expert at the independent DIW economic research institute, said: “This level of 15 percent is quite problematic. It means a 25 percent cut within a few months and I consider that to be too much. It’s going to hit the small and medium sized companies very hard. It’s going to bring a lot of uncertainty into the market.”
The German Renewable Energy Association also used strong language, saying: “The radical cuts endanger the expansion of renewable energy.”