Cara Pasquale

April 15th, 2005

Professor Crawford

 

Germany: The Leader in Wind Power

 

Abstract:

            Germany is the world leader in wind power and is continuing to expand their capacity through new projects and market incentives. The following paper looks at what policies Germany has enacted that have enabled this country to have such a successful wind market. In addition to looking at the policies that facilitate German wind power, Germany’s plans for the future are discussed to see what new steps they plan on taking to increase their wind power capacity. Following the analysis of Germany’s policies and plans for the future, there will be a section on the fact that while Germany is the world leader for wind power, there is growing opposition within their own country to this renewable energy source. This section will deal with the arguments for and against wind power. In light of disagreements about wind power, it is important to assess whether these disagreements will effect the governments future plans on the growth of wind power as a viable energy source for the country.

Introduction:

            Germany has become the champion of wind power, supplying 36% of the total wind energy produced around the world. The transition that Germany has made to wind power is remarkable considering that at the beginning of the 1990’s Germany had almost no renewable energy sources. In less than a decade, Germany was able to overtake the US and become the world leader in wind energy (Swain: 2003). In order to understand why Germany has taken a lead in wind power production, it is essential to look at the policies that have allowed this energy source to become a viable option. Germany plans to continue the trend of being the world leader by developing offshore wind farms and expanding already existing ones. Not only have policy incentives increased wind power in Germany, but also the continual support of both the public and the politicians. There is, however, a growing opposition to wind power that is growing stronger.

Why Germany Is the World Leader in Wind Power:

            Germany’s success in wind power production has arisen because of consistent policies aimed at gaining the support of the public and increasing investor confidence. In all countries, the major barriers to wind power are the lack of access to the transmission grid, lack of information, high start up costs and inconsistent government policies which Germany has overcome: “Germany’s dramatic success has been achieved through a combination of consistent, ambitious policies designed to address these barriers and create a market for renewable energy” (Swain: 2003). One of Germany’s strengths is that this country has taken a long-term view of sustainable energy where it enacts policies that enable wind producers to deal with the initial start up costs and make wind power economically viable. The start up costs to produce wind power is addressed by offering long-term, low interest loans and income tax credits. The politicians had the support of the people initially because of the publics increasing concern over global warming, and nuclear power. Germany has been working on phasing out nuclear energy since the beginning of the 1990’s within the next 30 years and sees wind power as a way to facilitate this process. 

The first wind energy program was the “100 MW” program, which was started in 1989 by the Ministry for Research and Technology. This program was very successful, and was increased to the “250 MW” program (Rickerson: 2002). Since the first wind power program was a success, the Electricity Feed-In Law (EFL) was initiated in 1991. This policy guaranteed grid connection for wind producers and introduced a Renewable Energy Feed-In Tariff (REFIT). This required utilities to hook up and purchase energy from all renewable energy providers in their areas and to pay at least 90% of the retail price for the electricity produced from them (Aitken). The EFL enabled Germany to reach 2100 MW in wind capacity by 1997 (Rickerson: 2002). The increase in wind power projects created around 40,000 new jobs helping with Germany’s unemployment problem (Rickerson: 2002).

In 1996, the federal government amended the Federal Building Construction Law so wind farms could be built in natural areas (Aitken). This increased the number of sites for wind farms helping to increase production. As the number of wind towers increased because of the 1991 EFL and the amendment to the Federal Building Construction Law in 1996, public opposition to wind power grew.  The public was concerned about their towns being ruined by endless construction of wind towers all over the countryside. The government has responded by encouraging communities to designate zones within their communities that are acceptable for wind towers. The government believes this addresses citizens concern such as noise and aesthetics because they chose the sites where wind towers can be built, while at the same time ensuring that wind farm producers will be able to find sites (Swain: 2003).

A substantial boost to wind power has come from the Renewable Energies Sources Act (EGG) in April 2000 (Goethe Institut). The EGG guarantees wind producers a price of about .09 euros per kwh for the first 5 years and after that time the site quality is evaluated against a standard of performance. If a site yield is at least 150% of the standard, then the guaranteed price drops for that site decreases to .06 euros per kwh. If the yield is less than 150% of the standard, than the .09 euros per kwh is extended for two months for every .75% that yield is under 150% (Rickerson: 2002). This method makes sure that weaker sites are compensated so they can keep running, while stronger sites are not over compensated. This law has enabled Germany’s wind potential to be thoroughly developed. As a result, by the end of September 2000, Germany had 15,688 MW of wind installations, which provided 6.2% of the country’s electrical energy needs (Aitken).

An amendment to the EGG of 2000 was enacted in 2004 to increase support for onshore and offshore development. For onshore wind farms, .087 euros per kwh will be given for at least 5 years after installation. After 5 years the tariff will be reduced to .055 euros per kwh depending on the yield of the system with a yearly reduction of the tariff by 1.5%. For offshore wind farms, .085 euros per kwh will be given for the first 10 years and then .062 euros per kwh for the next 10 years (Country Report: Germany). This ensures that wind producers will make a guaranteed amount, increasing the desire to invest and confidence in new projects: “The legal commitment for grid operators to make minimum payments for electricity fed into the grid from renewable sources has created a reliable basis for the expansion of wind energy” (Politics and Wind).

The policies not only allow for large wind producers to acquire the initial start up cash, and necessary loans, but for small wind producers to receive the necessary funds. This is beneficial because, “Germans from diverse backgrounds and income levels have been able to invest in renewable energy projects, leading to a surge in installed capacity and associated jobs, and reinforcing political support”(Swain: 2003). Approximately 90% of wind turbines are owned by private citizens and more than 200,000 people are involved in cooperative wind programs (Rickerson: 2002).

Germany’s policies have led to dramatic advances in installed capacity. In 2000 alone, 1,663 MW were fed into the national electricity grid, and by 2001, Germany added 2,659 MW, which represented a growth rate of over 60% (Rickerson: 2002). In 2002 Germany installed more than 2,000 new wind projects which all fed into the grid (Swain: 2003). Germany’s success with wind power, is truly a model for the world: “Germany has demonstrated not only that it is possible for renewable energy increasingly to meet the energy needs of industrialized society but also that the transition to a more sustainable energy future can happen rapidly with political will and the right policies” (Swain: 2003).

Plans for the Future:

Germany is planning to increase wind power over the next couple of decades in order to fulfill national goals. The federal government has set a goal for the reduction of CO2 emissions from 859 million tons per year to 846 million tons per year by 2008. In energy generation and industry, emissions need to drop from 503 million tons per year to 495 million per year if the former goal is to be reached (DENA: 2004). The federal government strongly believes that renewable energy, specifically wind power, will be essential to reaching this goal and plan to further support developments in onshore and offshore development of wind farms (DENA: 2004). As a result of Germany’s success on being able to maximize the wind power capacity on land through legislative actions, almost all of the suitable wind power sites on land have been used. Since Germany is running out of on land sites, in order to stay the world leader in wind energy, the German Government, the Red-Green coalition, is relying on wind energy, which is expected to deliver an energy output that is 40% higher than from the wind farms on land (Goethe Institut). The development of offshore wind farms is seen as beneficial by the government because, “their appearance and sound of whirring propellers won’t bother local communities, and strong and steady sea winds will keep the turbines turning at full force” (Madsen, 9).

One of the plans for an offshore wind farm is a site 35km east of the Baltic island of Rugen, which will consist of 200 turbines, generating 1,000 MW. In Hartmut Wewetzer’s article, Germany: Tilting at Windmills, quotes the spokesperson of the energy company that is preparing to build this offshore farm, addressing the concerns of citizens who are afraid about the aesthetic look of the wind farms, “…and from the shore, you won’t be able to see a single windmill”. The plans have already been made for GW size offshore wind farms of sites up to 100km from the shore and depths up to 30 meters. According to Rickerson’s article, German Electricity Feed Law Policy Overview, if the plans develop the energy capacity of offshore wind projects will amount to 20,000 to 25,000 MW by 2030, which will meet 15% of Germany’s electricity need. Offshore development has a considerable amount of potential because of consistent strong winds, but the investment costs will be 75% to 95% higher than investments for land projects (Rickerson: 2002). As a result, the government will continue to strengthen wind power policies, such as the 2004 amendment to the EGG, in order to offer more support to offshore developers.

Also, since new, more powerful wind turbines have been produced as compared to when Germany first began building wind farms, there are plans to repower older sites. Repowering is when old turbines are produced with higher producing turbines. The current plans to repower these sites with MW producing turbines would double the installed capacity, and at the same time cutting the number of turbines in half (Rickerson: 2002).

Arguments for Wind Power:

With the growing opposition to wind power, it is important to highlight why wind power is beneficial in order to understand why the German government has been so progressive with its development. Wind power can help produce climate stability, air quality, health, job creation and political and economic security. Supporter of wind power believe it is a good option as a renewable energy source because it is non-polluting, which helps in the fight against global warming. As a non-polluting energy source, wind power will help Germany reduce its green house gas emissions, which it has pledged to reduce higher than the standards in the Kyoto protocol. BUND, the German branch of the environmental group Friends of the Earth, defends wind power because they emit no greenhouse gases, air pollutants, waste, radioactivity, or residual heat (Goethe Institut). BUND has some opposition to wind power, but advocates for it if it follows certain guidelines regarding landscapes. Georg Loser, who is a representative of BUND describes in Paul Gipe’s article, Windiger Protest, some of the landscapes that have to be excluded from development: “National parks, nature reserves, areas surrounding natural wonders, historic cultural landscapes and landscape zones used exclusively for recreation”.

Herman Scheer, who is a member of the lower house in the Bundestag, the German Parliament, and a wind energy lobbyist, strongly disagrees with the claims that wind farms burden the landscape. He believes wind farms as a benefit to the landscape: “We would save the landscape by reducing water consumption for fossil and nuclear steam power stations, by avoiding acid rain and water contamination by oil, by protecting the climate and reducing the number of pylons due to the substitution of large power stations” (Scheer: 2001). In response to the claims that wind power is detrimental to the economy because of its price, new developments in technology are allowing for many advances in wind power capacity to help reduce its cost. Windmills of up to 5,000kw have been developed with an annual energy yield of 500 times that of the 1980 models (Goethe Institut). There is now installation of on-board computers to tilt propeller blades, depending on wind conditions to maximize the wind potential (Madsen, 9). As a result, the price of wind power has fallen by 55% since 1991.

Wind power has also created many job opportunities. Germany currently has about 45,400 permanent jobs created by the wind industry. This number is expected to increase to about 103,000 jobs by 2010 (Aitken). Also, as compared to nuclear energy, German wind power employs more people than nuclear power, which is an industry that provides 30% of the nations electricity (Swain: 2003). The overall fact is that wind power is a clean energy source, that will help to reduce CO2 emissions and will be a considerable help to energy generation when oil supplies decrease.

Arguments against Wind Power:

            While the benefits of wind power are evident, there are valid reasons to object to this form of energy. The most frequent complaints of wind power are that these towers ruin the landscape, produce intolerable noise, are a danger to birds, are uneconomical, are not ecologically friendly and are detrimental to humans for economic as well as health reasons. Professor Otfried Wolfrum, who is the founder of “Germany’s League to Protect the Countryside”, is a major opponent of wind power. He believes that these machines are detrimental to the landscape, to humans and to animals. Wolfrum also argues that even though wind power projects, which are supported by government incentives, create jobs now, but those jobs will be gone in the future. He believes this because if energy prices are not competitive in Germany, “some electricity firms might move their plans to countries where conditions are more favorable” (Wewetzer: 2003).

Several citizens groups, estimated at around 300 groups, have emerged to fight against wind power (Resolution…1999). These groups have similarities to the US groups that protest nuclear power plants and waste facilities with the slogan, “Not In My Backyard”. The Darmstadt Manifesto is one of the first substantial protests against wind power by a large group of people. This manifesto was signed by over 100 professors and presented in September 1998 to the Bonn press club. It states that wind power promotes the progressive destruction of the countryside and destroys the cultural-historical nature in the environment of towns and villages. Wind power promotes the industrial transformation of the landscape, which is a special part of German culture. The manifesto states that electricity from wind power is inconsistent because it is based on the weather. This means that wind power cannot be used to any significant degree as a substitute for other forms of energy. Since it is inconsistent it cannot aid in climate protection nor protection of the landscape (Darmstadt Manifesto). Wind farms also decrease property value to areas close to the turbines, which hurts the average citizen. Wind power is also dangerous to animals, especially to the birds living near the North Sea and Baltic coasts because they are being driven away from their breeding and feeding grounds (Darmstadt Manifesto). The manifesto declares, “In view of the serious harm threatening our countryside, which has evolved through history and which is the foundation of our cultural identity, we appeal for an end to the expansion of wind power technology which is pointless from both an ecological and economical point of view” (Darmstadt Manifesto).

Another document produced by several citizens groups is the Resolution of the Citizens’ Action Committees against Wind Turbines in Germany, which was addressed to the German Parliament and administrative authorities at all levels. This  resolution wants the immediate halt to all construction of wind power plants, which create intolerable conditions for the public. This resolution argues that wind power is detrimental to humans, animals and especially the German landscape: “Wind power plants offend against the traditional time-tested principle of the separation of industrial and natural zones more ruthlessly than all other technical innovations” (Resolution…1999). This resolution argues that people’s basic right to physical and mental well-being are violated by wind power plants because these plants are, “an incessant strain on their vegetative nervous system. Reflections of light and shades, permanent noise, intermittent sounds, and inaudible low-frequency vibrations cause mental as well as physical complaints or illnesses” (Resolution…1999). The groups that support this document believe wind power is uneconomical and ineffective for power supply and preservation of natural resources. Instead of wind power, they argue for increased energy efficiency and investment in “sensible” renewable energy source (Resolution…1999).

Conclusion:

            Even with the growing objections to wind power, the government is determined to proceed with future plans, especially those concerning the development of offshore wind farms. Since the start of wind power in Germany, the government has created supportive policies that have allowed the wind market to grow in a way that does not hurt the economy and helps the public through environmental and economic benefits such as new jobs. Although there are groups opposed to wind power, this energy source is becoming a more viable option for the future to help with environmental and energy concerns. Germany is truly an example to the rest of the world, that through the right policies, wind power is a viable option for the future.

 

 

           

 

           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sources

 

Aitken, Donald. Germany Launches Its Transition to All Renewables. http://www.sustainablebusiness.com/features/feauture_prmtable.cfm?ID=1208

 

Country Report: Germany.

www.react.novem.org/Country%20Report%20-%20Germany.pdf

 

Darmstadt Manifesto. http://www.savethevale.org.uk/darmstadt_manifesto.html

 

DENA, The Planning of the Grid Integration of Wind Energy in Germany Onshore and Offshore up to the year 2020. www.dena.de

 

Gipe, Paul. Windiger Protest. http://www.wind-works.org/articles/windiger.html

 

Goethe Institut. There’s Sustainability in the Air – Wind Power in Germany.

            http://www.goethe.de/kug/ges/umw/thm/en122617.htm

 

Madsen, Birger T. Energy’s Wind of Change.

            http://www.unesco.org/courier/2000_03/uk/pdf/00_03_09.pdf

 

Politics and Wind: The Political Setting for Wind Energy.

http://www.offshore-wind.de/show_article.cfm?cid=89

 

Resolution of the Citizen’s Action Committees against Wind Turbines in Germany. Nov. 9th, 1999. http://mitglied.lycos.de/WilfriedHeck/resol.htm?

 

Rickerson, Wilson. German Electricity Feed Law Policy Overview, 2002

http://www.wind-works.org/articles/fl_Rickerson.html

 

Scheer, Dr. Hermann. When the wind of change starts blowing there are who build walls and there are others building windmills. July 2nd, 2001.

            http://www.herman-scheer.de/documents.php?uid=25&action=show

 

Swain, Janet L. Run with the Wind-Power-Environmental and Economic Benefits of Wind Power, in, New Internationalist, June 2003.

 

Wewetzer, Hartmut. Germany: Tilting at the Windmills, 2003. http://www.unesco.org/courier/2000_03/uk/planete/txt2.html