Germany Overtakes US as the Most Attractive Market for Renewable Energy Investment

According to the Ernst & Young’s latest Renewable energy country attractiveness indices, Germany has overtaken United States as the most sort after market for investment in renewable energy. The auditing firm blames the economic downturn for what has been a challenging year for renewable energy investment across the world.

The indices – which track and score global investment in renewable energy – also reveal that there has been a record reduction in the attractiveness of all 20 countries included for the first time since its creation five years ago.

Germany has been successful in attracting foreign investment due to its feed-in tariff system under which consumers can sell electricity produced from solar panels or wind turbines installed at their homes to power companies at a price higher than the market price. Although feed-in tariff has its roots in California where it was first used, the US failed to capitalize on this scheme whereas Germany mastered it so well that now other countries are adopting the same model.

People Should Be Encouraged, Not Forced To Switch To Renewable Energy

'Solar Homes' in Vauban (Freiburg), Germany

Even before the current global economic crisis unfolded there were voices of opposition against a large scale switchover to renewable energy sources as it could cost billions of dollars straining the economies across the world. And then came the long impending energy crisis which made the use of renewable energy imperative. While the governments around the world unleashed massively ambitious national energy plans in an effort to check the degrading effect of high fuel prices, somewhere, it seems, this new energy revolution has hit a wall. A wall which has made the common people rethink about their capacity to bring about significant changes in their lives in order to undo the damages they have done, knowingly or unknowingly, to the environment.

Although this practice isn’t common but a German town recently passed a law which makes it mandatory for its people to install solar energy equipment whenever they buy a new home or renovate the existing one. The motive of the town’s council no doubt is well intended as it tries to press on the use of renewable energy but the law would certainly face serious opposition from the people. As Nicholas Kulish of the New York Times puts it

German Parliament To Be World’s Greenest, Fine Tuning Required

From late summer the building is due to swap to green power sources such as water, wind and solar energy, replacing the conventional power that it has largely relied upon until now.
Its extensive refurbishment in the late 1990s, including the glass cupola designed by the British architect Sir Norman Foster, had already won it plaudits. Ecologists praised the building’s energy efficiency, which has led to a 94% cut in its carbon emissions.

Reichstag to run solely on renewable power – The Guardian

In what can only be described as the most commendable taken to curb emissions by any parliament in the world the German Reichstag has decided that it would use energy generated only from renewable energy sources. The Germen government has set a remarkable precedent which should be followed the world over.

One thing, however, that the German Parliament needs to do is the removal of the biofuel generators which generate 40% of the building’s energy. While transforming the Reichstag into a beau ideal of energy generation for rest of the world, the German government needs to take into account the catastrophic consequence of over usage of biofuels. The European Union itself is in a fix over its biofuels policy.

Since 40% is no mean figure the Reichstag should look to reduce it to single digits and should try to distribute the load of energy generation among other green power sources like water, solar and wind. Solar panels, which now are available at very low prices, can be used to replace the biofuel-powered generators. The Reichstag can further cut its €3 million energy bill by setting up roof gardens. The roof gardens cool the surrounding air by as much as 3 degrees to 11 degrees Celsius and can prove very helpful in cutting the air conditioning costs if the building and also add to the urban biodiversity.

The German government deserves tons of praise for this highly ‘green’ificent step but needs do to slight correction so that its message to the world is crystal clear. Germany is already leading the world in green innovation and this step would only strengthened its reputation as one of the greenest countries in the world.