How France can learn from Germany’s wind energy success
Take a look at energy production in Germany and it is clear that wind energy has been developed with great success. The puzzling thing is that France, a neighbor to Germany, has not experienced the same level of success in wind energy development. Taking a deep look at public policy between the two nations explains how the two have had such different experiences in creating greater wind energy capacity.
Germany is a world leader when it comes to wind energy production. Germany’s wind energy capacity was expected to be around 25,730 mega-watts by the end of 2009. 2 France on the other hand isn’t making the strides for increased wind energy production as Germany has demonstrated success in. The French government set up goals comparable Germany to increase wind energy production. However, Germany has exceeded the expectations set by the goals of their government whereas France will miss its aim. France has realized that they will fall short of their 2020 target of 23% total domestic energy production from renewable energy (including wind power) compared to last year’s 13% capacity. 5 What is Germany doing that has allowed them to not only reach their goals, but blast them out of the water?
In the scope of public policy, Germany is far more catering to incentivize wind energy growth than France. Actually, both attempted similar policy, but Germany was more aggressive. The main policy that both nations used in hopes to incentivize development of more wind energy production is called a feed-in tariff. With a feed-in tariff, the government pays a set rate to wind energy producers for every kilowatt-hour produced. For example in this year, 2012, the feed-in tariff rate for a startup German wind energy producer is 8.93 euro cents per kilowatt-hour. This rate is for startup production, and decreases annually at 1.5%.3 At the introduction of such a generous feed-in tariff rates in Germany, very large increases in wind power capacity occurred. In fact, the slow development in France can be explained by their tariffs being too low.8 Though the feed-in tariffs in Germany have worked greatly to promote increased wind power capacity, it opens a concern about the expense being burdened on the taxpayers. The reality though is that “the construction of the subsidy regime was very successful because it distributed the costs to the entire population, where they were diluted so strongly that no opposition could be organized.”4
Perhaps France is using Germany as a lesson. They may fear becoming more dependent on wind energy since wind power is so variable. In fact, Germany’s actual wind energy output averages around 17% of their total wind power capacity.1 Truth is though, the real reason is that the manner in which wind energy development is administered is different between the two nations. “In France, we have a centralized state and centralized energy production, so everything goes in the same top down direction, countering action from local communities wanting to develop their own projects.”7 In Germany, the energy sector is not centralized. Being the nature of energy administration in Germany, it doesn’t hinder growth because it allows individuals and states to develop their own wind power. The generous feed-in tariff in Germany motivates private investment in wind power. “Most of Germany’s development is in small, dispersed projects owned by individuals and private operating pools, not owned by utilities.”6 The power of private investment in wind power incentivized by the aggressive feed-in tariff explains the success that Germany has had with wind power.
Europe as a whole has made great strides in developing renewable energy. Both France and Germany are in the works of increasing renewable energy production. France has suffered a staggeringly slow development specifically in wind power. Germany on the other hand has effectively made themselves champions of wind energy development. It would be wise of France to take a look at Germany’s wind energy development policy as a model for their own country. France would realize that Germany is making the move forward to incentivize national growth in wind energy output with their aggressively successful policymaking.
Works Cited
1. Booker, Christopher. “Germany’s Wind Power Chaos Should Be a Warning to the UK.” Editorial. The Telegraph. N.p., 22 Sept. 2012. Web. 19 Nov. 2012. <http://www.telegraph.co.uk/comment/9559656/Germanys-wind-power-chaos-should-be-a-warning-to-the-UK.html>.
2. Bruns, Elke. “Wind Power Generation in Germany — a Transdisciplinary View on the Innovation Biography.” EBSCOhost. EBSCO, 2011. Web. 25 Nov. 2012.
3. “The German Feed-in Tariff: Recent Policy Changes.” Deutsche Bank Research (2012): n. pag. Web. <http://www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD0000000000294376/The+German+Feed-in+Tariff%3A+Recent+Policy+Changes.pdf>.
4. “The German Wind Energy Lobby: How to Promote Costly Technological Change Successfully.” EBSCOhost. EBSCO, 2005. Web. 25 Nov. 20121.
5. Patel, Tara. “France Will Miss 2020 Offshore Wind Capacity Target, EDF Says.” Businessweek.com. Bloomberg, 13 July 2012. Web. 19 Nov. 2012. <http://www.businessweek.com/news/2012-07-18/france-will-miss-2020-offshore-wind-capacity-target-edf-says>.
6. “Renewable Energy Report: WIND POWER.” EBSCOhost. EBSCO, 2004. Web. 25 Nov. 2012.
7. Rose, Michel. “France Needs More Local Power for Green Energy Shift.” Www.reuters.com. N.p., 14 Nov. 2012. Web. 19 Nov. 2012. <http://www.reuters.com/article/2012/11/14/france-renewables-state-idUSL5E8MC9DG20121114>.
8. Szarka, Joseph. “Why Is There No Wind Rush in France?” EBSCOhost. EBSCO, Sept.-Oct. 2007. Web. 26 Nov. 2012.