In the early 1990s, Germany launched Energiewende, or B次元官网网址渆nergy revolution,B次元官网网址� a program B次元官网网址渢o combat climate change, avoid nuclear risks, improve energy security, and guarantee competitiveness and growth.B次元官网网址� Renewable energy grew from four per cent in 1990 to more than 27 per cent in 2014, including a significant increase in citizen-owned power projects, according to energy think tank Agora Energiewende.
GermanyB次元官网网址檚 greenhouse gas emissions dropped by 27 per cent during that time. Its goal is to reduce emissions 40 per cent from 1990 levels by 2020 and more than 80 per cent by 2050. Polls show that 90 per cent of Germans like the program B次元官网网址� even though it means paying higher rates for electricity.
ThereB次元官网网址檚 good reason for this widespread support. The primary technologies of wind and solar have become cost-competitive with conventional energy sources. Variable renewable sources and B次元官网网址渇lexibility optionsB次元官网网址� for conventional and renewable power generation are making baseload power obsolete B次元官网网址� which means the system is geared to wind and solar rather than nuclear or coal. ItB次元官网网址檚 one of the most reliable energy systems in the world. And itB次元官网网址檚 created jobs and revenue.
Energiewende hasnB次元官网网址檛 solved all of GermanyB次元官网网址檚 emissions and energy issues. Electricity rates are among EuropeB次元官网网址檚 highest, although theyB次元官网网址檙e expected to come down as more renewable energy becomes available, and efficient usage means B次元官网网址渁ctual costs to households are comparable to countries with lower prices but higher consumption levels.B次元官网网址� The country still gets more energy from coal than renewables, transportation and heating consume significant energy from conventional sources, and heavy industry makes Germany one of Western EuropeB次元官网网址檚 highest emitters. Opposition from power utilities and coal companies, with consequent government compromises, has also slowed progress. But a range of initiatives and tools has put Germany on track to meeting its long-term climate commitments.
One tool Germany used to achieve its rapid progress was a feed-in tariff, which guarantees renewable energy producers B次元官网网址� individuals, businesses, community organizations and power companies B次元官网网址� access to the grid and payment from power utilities for energy they put into the system.
At first, the tariff wasnB次元官网网址檛 enough to cover costs, but in 2000 Germany introduced a law that guaranteed feed-in tariffs for 20 years at prices high enough for producers to profit. As renewable energy costs drop and more is brought into the system, tariffs go down.
Feed-in tariffs are in place in Ontario, and in many countries worldwide. The Pembina Institute notes theyB次元官网网址檙e effective for several reasons. They B次元官网网址渞eward actual productionB次元官网网址� rather than just installation, they minimize development investment risks and B次元官网网址渇acilitate access to financing,B次元官网网址� and they encourage small, medium and large producers and B次元官网网址渃ommunity and local ownership and engagement, minimizing opposition to projects.B次元官网网址�
They also B次元官网网址渆ncourage renewable power producers to use the most efficient technology, driving down costs by fostering industrial competition,B次元官网网址� and while they cause short-term electricity price hikes, those stabilize over time as costs and risks of conventional power generation and volatile fossil fuel markets are reduced. Income paid through tariffs B次元官网网址渕ore than offsets any electricity price increasesB次元官网网址� for those who generate renewable energy. And if the full environmental and health damages of fossil fuels are considered, renewables are an even better bargain.
Many jurisdictions with feed-in tariffs have become leading exporters of renewable energy technology, creating local jobs and strengthening economies B次元官网网址� with little or no government spending.
Feed-in tariffs vary in rates and designs according to what types and scales of technologies governments want to encourage and where they want them located.
Massive centralized power sources are not efficient and are quickly becoming outdated. Using smart grids and distributed renewable energy with demand-management systems allows energy to be dispatched where and when itB次元官网网址檚 needed, most often over shorter distances, and a variety of power sources makes them more reliable, as large-scale power outages are less frequent.
Meeting global commitments to reduce greenhouse gas emissions and slow global warming requires a transition from fossil fuels to renewable energy.
Feed-in tariffs are an effective way for governments to encourage that shift.
