
An Australian company which invented a renewable energy electricity generator says it was forced to move its operation to Germany because of a lack of opportunities in Australia.
Germany embracing renewable energy
Power production from renewables has tripled in Germany within the past decade, mostly from wind and solar.Last year, renewables accounted for 24 per cent of the country’s electricity.The German government introduced generous subsidies to kick-start the sector, amounting to 16 billion euros last year.But the government claims the program has already saved billions in fuel costs for the heavily import-reliant country.
“We have created new businesses worth 40 billion euros per year,” Ecologic Institute analyst Andreas Kraemer said.
Germany’s energy transition
- 80 per cent of electricity from renewable sources by 2050
- Nuclear plants shut down by 2022
- Carbon emissions cut by up to 95 per cent of 1990 figures by 2050
“We have created additional employment for up to 400,000 people. They all pay taxes, they all pay social security charges.”German households and small business pay the largest share for the renewable turnaround.They pay around 29 euro cents per kilowatt hour and much of that goes towards a renewable energy surcharge.Big industrial users are exempt from the surcharge and pay just 3.5 cents per kilowatt hour.Most of the subsidies are spent on first-generation solar and wind parks that are locked in high feed-in tariffs of over 40 cents per kilowatt hour for the next 20 years.But there are calls to phase them out all together.
Investors look for exposure to renewables market
The makeup of the German energy market already looks very different, with hundreds of companies and cooperatives being formed in a decentralised industry.While banks, industry, and project developers own 40 per cent of renewable installations, farmers and private investors own half.A number of new investment vehicles have formed to take advantage of the new industry.Crowd funding start up Bettervest has financed 14 projects since its inception a year ago.Company spokesman Julien Schroder-Gianoncelli said investors are attracted by the projects and the returns.”We are offering 5-10 per cent in interest, which is pretty good at the moment,” he said.
Ceramic Fuel Cells believes Germany’s regulations, incentives and market make it the place to be.Mr Obernitz said that, for the time being at least, there are no incentives available in Australia.”I’m not sure if that is going to change,” he said.”We would favour that because we have invented the technology in Australia, and it’s something that will change the world.”
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