on September 9th, 2017 by


As a member state of the European Union (EU), Germany’s energy policies are driven by a mix of national and European legislation.

Promoting Renewable Energy

Formally, the 27 EU member states regulate energy policies within their own national borders. However, EU treaty provisions concerning the European internal market, free competition, and environmental protection have created a European energy policy.

In 2009, a major piece of renewable-energy legislation was passed as part of an overall climate and energy package. The European Union’s Renewable Energy Directive requires each member state to increase its share of renewable energy—such as solar, wind power, biomass, or hydroelectric—to raise the overall share from 8.5 percent in 2010 to 20 percent by 2020 across all sectors (e.g., power generation, heating and cooling, and transportation fuels).

Achievements in Renewable Energy

Germany has seen a remarkable expansion of renewable energy in the last decade. The share of renewable energy in electricity generation rose from 6 percent in 2000 to 16 percent in 2009. Over this time, the German government revised its own targets twice, given that previous targets had been exceeded ahead of schedule. The German government is expecting a share of 38 percent renewable power by 2020 and continues to drive the transformation “towards an energy system based completely on renewable energies.”

The economic benefits of this development are impressive. By 2010, the field of renewable-energy-related jobs employed around 340,000 people, most of them in biomass, wind power, and solar. In comparison, the German lignite industry employs only 50,000 people—from mining to the power plant. The key policy responsible for this success is the Renewable Energy Sources Act, first enacted in April 2000. This feed-in tariff policy is embedded in a climate and energy policy framework that promotes renewable energy and efficiency technologies, including laws to encourage combined-heat-and-power plants, a cap and trade system, the energy tax reform described earlier in the article, and several additional measures. The next planned revision to the law will aim to incentivize grid access and grid improvement, offshore wind power, and technologies for peak management and power storage.

Comparison with Renewable-Energy Practice in the United States

The United States currently employs a mix of short-term tax credits, loan guarantees, state-level renewable portfolio standards, and limited feed-in tariffs. In contrast to Germany, the U.S. policy framework has evolved less quickly at the federal level, where time horizons have been shorter-term. The uncertainty engendered by this short-term policy framework has led to repeated falloffs in renewable-energy capacity additions in the United States as support measures have neared expiration. For example, in contrast to Germany, new wind turbine construction in America has fluctuated greatly from year to year, because incentives have repeatedly expired. Even with this policy uncertainty, however, the United States in 2008 still led the world in total installed wind-power capacity, with 20.8 percent. In 2008, renewable energy provided 9 percent of electricity production in the United States, with large-scale hydropower being the largest source.

Taken from SOLUTIONS for a sustainable and desirable future, the leading popular academic journal

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