220 gt german competitiveness da

8/14/2019 220 GT German Competitiveness DA

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FILE NAMEDDI 2008 Your Name

GERMAN COMPETITION DA

GERMAN COMPETITION DA ..........................................................................................................................1

1NC SHELL German Competition DA (1/2) ....................................................................................................4

1NC SHELL German Competition DA (1/2) ....................................................................................................5

Uniqueness: Germany = Renewable Energy Leadership ...................................................................................6



Uniqueness: Germany = Leader in Wind Energy ...............................................................................................9

Uniqueness: Investments in Germany now .......................................................................................................10

Uniqueness: Germany = Leader in Solar (PV) Energy ....................................................................................11

Uniqueness: Germany = Leader in Solar PV Energy .......................................................................................12Uniqueness: Germany = Leader in Solar PV Energy .......................................................................................13

Uniqueness: Germany = Leader in Solar PV Energy .......................................................................................14






Uniqueness: Germany = Leader in Solar Thermal Energy .............................................................................20

Uniqueness: Germany = Leader in Biomass ...................................................................................................21

Uniqueness: Europe = Wind Energy Leadership ..............................................................................................22



Uniqueness: US down, Germany up ..................................................................................................................25

Uniqueness: Auto Industry .................................................................................................................................26

Uniqueness: German LegislationCompetitiveness ......................................................................................27Brink: German Economy ....................................................................................................................................28

German Econ = Brink .........................................................................................................................................29

Link: Wind Energy ..............................................................................................................................................30

Link: Wind Power ................................................................................................................................................31

Link: Wind Energy ..............................................................................................................................................32

Link: Solar Energy ..............................................................................................................................................33

I have a competition in meI want no one else to succeed Daniel Plainview 1


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Link: Biofuels/Biomass ........................................................................................................................................36

Link: Tech Development ......................................................................................................................................37

Link: Research & Development .........................................................................................................................38

Link: Climate Change .........................................................................................................................................39

Internal Link: Alt Energies Key to Econ ...........................................................................................................40

Internal Link: Alt Energy Key to Econ ..............................................................................................................41



Internal Link: Wind Energy Key to Econ .........................................................................................................44



Internal Link: Solar Energy Key to Econ ..........................................................................................................47

Internal Link: EU is increasing reliance on biofuels .......................................................................................48

Internal Link: Alt Energy Exports Key to German Econ ................................................................................49

Impact - Germany key to EU Econ ....................................................................................................................50

Impact: Germany key to EU economy ...............................................................................................................51

Impact- European Instability ..............................................................................................................................52Impact German Economy CollapseGlobal Instability ..............................................................................53Impact: DeclineEconomic Collapse ...............................................................................................................54Impact: German Econ Decline EU Collapse .................................................................................................55EU Climate Spillover ..........................................................................................................................................56

AT: Competition =/= Zero-Sum ..........................................................................................................................57

AT: Competition =/= Zero-Sum ..........................................................................................................................58

AT: Wind Energy Competition =/= Zero-Sum ..................................................................................................59

(Aff) Germany =/= Energy Independent ...........................................................................................................60

(Aff) Non unique German Economy ...............................................................................................................61

(Aff) Non-Unique: German Competitiveness ....................................................................................................62

(Aff) Non-Unique: EU Economy .........................................................................................................................63

(Aff) Non-Unique: US = Wind Power Leadership ............................................................................................64

(Aff) No Link: Biomass ........................................................................................................................................65



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(Aff) Non-Unique: Wind Energy Declining Now ..............................................................................................66

(Aff) Non-Unique: Wind Energy Declining Now ..............................................................................................67

(Aff) Non-Unique: Solar Industry Failing in Germany ....................................................................................68

(Aff) No Internal Link .........................................................................................................................................69



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1NC SHELL German Competition DA (1/2)

Uniqueness - Liberal feed-in tariffs are driving Germanys top-notch alternative energy industry and

attracting investment

Space Daily 6-12-2008; New German Renewable Energies Law Strengthens Sector Investment, Lexis

The German parliament (Bundestag) has agreed to new laws that strengthen conditions for renewable energies investments.The laws are part of the government's "Climate Package," the goals of which are saving 250 million metric tons of CO2 by

2020, with renewable energies contributing to 30% of electricity production by the same year.

These legal changes strengthen Germany as an investment location for renewable energies and energy efficiency technologies.

One element of the reform is an amendment to the Renewable Energies Sources Act (EEG). This change calls for a higher"feed-in tariff" for wind energy. The feed-in tariff is the compensation paid to owners of renewable energies systems when

energy from their systems is sold to the public grid. The new law raises the feed in tariff for wind energy to a range of 9.2-15EURcent/KWh. The parliament also reformed the EEG for electricity from solar energy. Photovoltaic (PV) systems will receive afeed-in tariff of 33-43 EURcent/KWh, depending on the amount of electricity sold to the public grid. According to the new law thetariff will decrease between 8 and 10% in 2010 and then 9% annually after 2011. These two reforms are important for investors.For wind energy, the increased tariffs provide further incentive for wind energy companies to enter the world's largest market

in wind energy (measured in accumulated capacity).The falling tariffs in PV energy are evidence to investors that Germany is making significant progress in reducing the cost ofelectricity generation from PV sources, therefore making subsidized prices less necessary to attract investment.This progress has been made thanks to highly qualified workers in the PV sector in Germany, the location of top researchinstitutes, and leading suppliers. These conditions make Germany an attractive location for production or R and D in the PVsector.

Link - American competitiveness hurts Germany shifting markets overwhelms innovation

Business Week2-11-2008; The Wind at Germanys Back, Lexis

The challenge for Germany will be staying ahead. While the country leads in wind-generation capacity, the U.S. market is

growing faster. As sales shift to other regions, so, inevitably, will manufacturing. To hold on to its lead, Germany will have to

keep its edge in innovation. Siemens, which has 7% of the global wind-turbine market, aims to gain share via its expertise inconventional power and its strong relationships with utilities. And Germany's network of research institutes continues to workon renewables. One group hopes to cheaply produce silicon impregnated with hydrogen, creating a fuel that's easy to transport andcan be used to power fuel cells, solving the problem of getting energy from remote wind and solar farms to cities. Another outfit isworking to commercialize a generator that combines elements of sun and wind power, in which solar collectors at ground levelproduce hot air that rises through a chimney and turns a power-generating turbine. Says Q-Cells CEO Anton Milner: "This industry isstill in the warm-up phase."



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1NC SHELL German Competition DA (1/2)

Internal Link - Alternative energies are crucial to German economic growth and reversing recession

Deutsche Presse 10-8-2007; Survey: Climate change brings German economy new chances, Lexis

The German economy stands to gain above-average opportunities from climate change in the years and decades ahead, a

leading economic institute and bank said Monday. The climate change survey issued by the Hamburg Institute of InternationalEconomics (HWWI) and the Berenberg Bank said that Germany has become market leader in many future sectors of the emergingbillion-dollar business. "The economy has often complained about the additional costburdens brought by Green politics,"HWWI boss Thomas Straubhaar said. "Now the time of reaping (the benefits) has come." he winners in the climate change scenariowill be those companies which offer so-called "green technologies," with their markets rising by an average of 8 per cent annuallythrough 2030, or double the economic growth rate for the world economy, the study said. "Germany will cut a really big slice of thiscake," Straubhaar predicted. The HWWI boss said Germany is now already at the forefront concerning renewable energies,waste management, nano- and biotechnologies and boosting efficiency. "In order to prevent the negative consequences of

climate change, billions of euros would have to be invested in new technologies, prevention, adaptation and protection,"Straubhaar explained. "This is an electrifying invitation to all creative tinkerers, curious inventors, smart investors and boldentrepreneurs," he said.According to the study,the climate change will result in a"renaissance of the primary sector" on thecapital market and for investors

.

Economic crisis in Europe leads to trans-Atlantic militarization, instability, and terrorism

The Scotsman 1-16-2005; CIA gives grim warning on European prospects, http://news.scotsman.com/europeanunion/CIA-gives-grim-warning-on.2595505.jp

It adds that the EUs economic growth rate is dragged down by Germany and its restrictive labour laws. Reforms there - and inFrance and Italy to lesser extents - remain key to whether the EU as a whole can break out of its "slow-growth pattern".Reflecting growing fears in the US that the pain of any proper reform would be too much to bear, the report adds that the experts itconsulted "are dubious that the present political leadership is prepared to make even this partial break, believing a looming budgetarycrisis in the next five years would be the more likely trigger for reform". The EU is also set for a looming demographic crisisbecause of a drop in birth rates and increased longevity, with devastating economic consequences. The report says: "Either Europeancountries adapt their workforces, reform their social welfare, education and tax systems, and accommodate growing immigrant

populations [chiefly from Muslim countries] or they face a period of protracted economic stasis." As a result of the increasedimmigration needed, the report predicts that Europes Muslim population is set to increase from around 13% today to between 22%and 37% of the population by 2025, potentially triggering tensions. The report predicts that Americas relationships with Europewill be "dramatically altered" over the next 15 years, in a move away from post-Second World War institutions. Nato could

disappear and be replaced by increased EU action. "The EU, rather than Nato, will increasingly become the primary

institution for Europe, and the role Europeans shape for themselves on the world stage is most likely to be projected through it," thereport adds. "Whether the EU will develop an army is an open question." Defence spending by individual European countries,including the UK, France, and Germany, is likely to fall further behind China and other countries over the next 15 years.Collectively these countries will outspend all others except the US and possibly China. The expected next technological revolutionwill involve the convergence of nano, bio, information and materials technology and will further bolster China and Indias

prospects, the study predicts. Both countries are investing in basic research in these fields and are well placed to be leaders. Butwhereas the US will retain its overall lead, the report warns "Europe risks slipping behind Asia in some of these technologies".

For Europe, an increasing preference for natural gas may reinforce regional relationships, such as those with Russia or North

Africa, given the inter-dependence of pipeline delivery, the report argues. But this means the EU will have to deal with Russia,which the report also warns "faces a severe demographic crisis resulting from low birth rates, poor medical care and apotentially explosive Aids situation". Russia also borders an "unstable region" in the Caucasus and Central Asia, "the effectsof which - Muslim extremism, terrorism and endemic conflict - are likely to continue spilling over into Russia".

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Uniqueness: Germany = Renewable Energy Leadership

Germanys policies have helped the growth of the renewable energy industry

Janet L. Sawin, energy and climate change writer and researcher based at the Worldwatch Institute in Washington DC, 6-3-2008;

Germany Leads the World in Alternative Energy, http://www.mindfully.org/Energy/2003/Germany-Alternative-EnergyJun03.htm

The main obstacles that keep renewables from producing more than a small share of energy in most of the world are lack of

access to the transmission grid, high up-front costs, lack of information, and biased, inappropriate and inconsistent

government policies. Germanys dramatic success has been achieved through a combination of consistent, ambitious policiesdesigned to address these barriers and create a market for renewable energy. These policies were driven by the publics risingconcerns about global climate change, risks associated with nuclear power, and a need to reduce dependence on imported fuels. Mostsignificant has been the grid access and standard pricing law, enacted in 1991 and inspired by effective Danish policies. Under thislaw, renewable energy producers receive above-market payments for power they feed into the grid and the costs are sharedamong all electricity consumers in Germany. These preferential payments for renewables are not considered subsidies, but means ointernalizing the social and environmental costs of conventional energy and providing compensation for the benefits of renewables.

Research and investment has driven renewable energy growth in Germany

Janet L. Sawin, energy and climate change writer and researcher based at the Worldwatch Institute in Washington DC, 6-3-2008;Germany Leads the World in Alternative Energy, http://www.mindfully.org/Energy/2003/Germany-Alternative-EnergyJun03.htm

Increased investment has also driven improvements in technology, advanced learning and experience, and produced economies ofscale resulting in dramatic cost reductions. Between 1990 and 2000 the average cost of manufacturing wind turbines in Germanyfell by 43 percent. Between 1992 and 2001, PV capacity experienced an average annual growth rate of nearly 49 percent.German PV manufacturers plan to expand their facilities significantly over the coming years to meet rapidly rising demand, a step thatwill further reduce costs and increase employment.Germany has demonstrated not only that it is possible for renewable energy increasingly to meet the energy needs of

industrialized society but also that the transition to a more sustainable energy future can happen rapidly with political will and

the right policies. To begin with, policies must be consistent and long-term. On-and-off policies in the US have created market cyclesof boom and bust, making it difficult to develop strong domestic industries. As a result, the U.S. is the only country where total wind-generating capacity has actually declined in some years.

Market creation must also be prioritized. Germany began funding research and development of renewable energy in the 1970s butsaw little commercial development until market incentives were enacted two decades later. Today at least 300 companies are involvedin supplying solar panels. Last year Germans installed more than 2,000 new wind projects, all of them feeding into the grid. It isestimated that more than 100,000 Germans own shares in wind energy projects, while many own shares in solar PV and otherrenewable projects as well.

Germany is the world leader in wind and solar energy


Yet by the end of the 1990s, Germany had transformed itself into a renewable-energy leader. With a fraction of the wind andsolar resources of the U.S., Germany now has almost three times as much installed wind capacity (38 percent of global capacity)and is a world leader in solar photovoltaics as well. And it has created a new, multibillion-dollar industry and tens of

thousands of new jobs. The German wind industry now employs more people than nuclear power (an industry that provides 30percent of the nations electricity) without a commensurate increase in electricity costs. Germany now generates 4.5 per cent ofits electricity with the wind and appears on track to meet government targets of 25 per cent by 2025. The government also

considers solar photovoltaics an option for future large-scale power generation.

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Germany is leading the international alt energy market


Germany is already Europe's largest market for solar thermal technologies and offers foreign investors many possibilities.

Investors in heat-producing technologies also have growth possibilities in CHP systems. Here the federal government has madeEUR750 million available annually to support CHP projects. The government has set the specific goal of having 25% of energy andheat coming from efficient parallel-production technologies by 2020. All of these legal reforms, plus others that encourage energyefficient technologies, e.g. "intelligent electricity meters," make it clear that Germany is consolidating its position as world

leader in renewable energies and offering many possibilities for foreign investors to enter its growing market. Invest inGermany is the inward investment promotion agency of the Federal Republic of Germany. It provides investors with comprehensivesupport from site selection to the implementation of investment decisions.

Germany has effectively used incentives to encourage alternative energy use


But some barriers remained. For example, as the number of wind turbines skyrocketed in some regions, local opposition andlengthy, complex siting procedures had the effect of stalling the development of new projects. The government responded byencouraging communities to zone specific areas for wind energya step that addressed concerns such as noise and aesthetic impactsand assured prospective turbine owners that they would find sites for their machines. To address the start-up costs barrier, theGerman government has offered long-term, low-interest loans and income tax credits to projects and equipment that meet

specified standards. These initiatives have drawn billions of dollars to the renewable energy industry, while technology standardshave reduced risk and created confidence by keeping out substandard machinery. The government has also promoted awareness ofrenewable technologies and available subsidies through publications and training programs. Such rock-solid policies endeduncertainties about whether producers could sell their electricity into the grid and at what price. They also provided investorconfidenceattracting investment money and making it easier for even small renewable power producers to obtain bank loans.Germans from diverse backgrounds and income levels have been able to invest in renewable energy projects, leading to a surge ininstalled capacity and associated jobs, and reinforcing political support.

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German policies have encouraged the rate of growth in alternative energy

Jamais Cascio, staff writer for WorldChanging, 12-22-2004; Alternative Energy in Germany,

http://www.worldchanging.com/archives/001780.html

This explosion in the use of renewable energy has been driven by the German Renewable Energy Law (EEG),passed in 2000and updated earlier this year(PDF). The EEG guarantees that, for a limited time, the nation's electric utilities must buy all wind,solar and other renewable power at a price per kilowatt-hour higher than that of power generated from coal, nuclear or

natural gas. Currently, the rate for solar is ten times that of traditional energy sources. Interestingly, the law stipulates that the utilitiesmust buy the power whether generated by commercial, industrial or residential generators. This contrasts to the situation in places likeCalifornia, where residences with solar connected to the grid can zero out their power bill, but don't receive payment for power fedinto the grid.As noted, these higher prices aren't set in stone. Recognizing that improvements in technology will drive generation costsdown, the tariff bonuses paid to solar, wind and biomass will decline gradually over time. For onshore wind, the bonus periodis five years; for offshore, it's twelve. Solar, which isn't yet as close as wind to being fully-competitive, gets twenty years. Inaddition, the added tariff for solar will not apply to any facilities built after the national installed solar capacity gets to 350 megawatts;

this tariff structure has the effect of encouraging solar power installation as early as possible in order to take advantage of the higherrates. The rate structure is also divided up by size, with higher rates generally going to smaller facilities, expressly to encourage thedevelopment of diverse, decentralized power production. (A detailed analysis of the 2000 version of the plan isavailable here.)

Incentives have made Germany the world leader in renewable energy

Federal Ministry of Economics and Technology, Germany, 2007; Renewable Energies in Germany: A Success Story,http://www.german-renewable-energy.com/Renewables/Navigation/Englisch/root.html

Renewable energy accounted for 5.8 percent of primary energy consumption in Germany in 2006 and the share of renewable

energy in total gross electricity consumption rose to 12 percent. In relation to total road traffic, the contribution of biofuels to fuelsupply reached 6.6 percent and, in the heat market, renewables' share in total heat provision was 6 percent. Its proportion in the totalfinal energy consumption rose to 8 percent. A turnover of 11.3 billion euros arose from the erection of plants and 10.3 billioneuros from the operation of the plants. Some 214,000 people are now employed in the renewable energy sector and may have

managed to prevent some 101 million tons of carbon dioxide from being released into the atmosphere in 2006. The Federalgovernment has provided the impetus for this development, particularly by regulating the payment for electricity from

renewable energy fed into the grid through the Renewable Energy Sources Act (EEG), and through other support programmes suchas the market incentive programme for renewable energy (MAP). Following on from these, renewable energy technologies inGermany have become an important industrial sector with high annual growth rates in the last few years. Many innovativeGerman companies have advanced to become international technological leaders, providing key components for the wind energy,hydropower, solar energy, geothermic and biomass sectors. "Renewables made in Germany" are considered amongst the worldleaders and are therefore being used all over the world. The Federal Ministry of Economics is supporting this dynamic industrywith a multitude of instruments and wishes to use these pages to provide information on innovative technologies and successful "madein Germany" projects, as well as events and ways in which companies can participate in the foreign trade fairs of the RenewableEnergy Export Initiative. (Figures from the working group on renewable energy statistics AGEE-Stat).

http://www.worldchanging.com/archives/001780.htmlhttp://www.fnr-server.de/cms35/index.php?id=401http://www.fnr-server.de/cms35/index.php?id=401http://www.wwindea.org/pdf/official_documents/EEG-english-final.pdfhttp://www.wwindea.org/pdf/official_documents/EEG-english-final.pdfhttp://www.folkecenter.dk/en/articles/EUROSUN2000-speech-PM.htmhttp://www.folkecenter.dk/en/articles/EUROSUN2000-speech-PM.htmhttp://www.folkecenter.dk/en/articles/EUROSUN2000-speech-PM.htmhttp://www.folkecenter.dk/en/articles/EUROSUN2000-speech-PM.htmhttp://www.german-renewable-energy.com/Renewables/Navigation/Englisch/root.htmlhttp://www.worldchanging.com/archives/001780.htmlhttp://www.fnr-server.de/cms35/index.php?id=401http://www.wwindea.org/pdf/official_documents/EEG-english-final.pdfhttp://www.folkecenter.dk/en/articles/EUROSUN2000-speech-PM.htmhttp://www.folkecenter.dk/en/articles/EUROSUN2000-speech-PM.htmhttp://www.german-renewable-energy.com/Renewables/Navigation/Englisch/root.html


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Uniqueness: Germany = Leader in Wind Energy

Germany is the undisputed world leader in wind power

Donald Aitken, PhD and former Senior Fellow at Dartmouth College, 5-10-2005, Germany Launches Its Transition To All

Renewables, http://www.sustainablebusiness.com/index.cfm/go/news.feature/id/1208

In 1996, the government amended the Federal Building Construction Law to permit wind generators to be built in natural

areas. By 1997, 2100 megawatts (MW) of wind had been installed in Germany. The country made an important policy advancewith the April 2000 introduction of the Renewable Energy Sources Act ("Act on Granting Priority to Renewable Energy Sources," orEEG). The EEG was most recently amended last July and extended for several more years. Under the new law, onshore wind turbinescoming online in 2005 will receive not less than 8.53 euro cents (about $US 11 cents) per kilowatt-hour for the first five years (12years for offshore development), and 5.39 euro cents (US 7 cents) after that, for 20 years of commissioning. Special incentives areintended to redress reduced power production (hence, revenue) in the lower wind regimes. Germany's accomplishments since 1990have been astonishing. By the end of September, Germany had 15,688 MW of wind installations, delivering 6.2% of the country'selectrical energy. It was the world leader in total installations, as well as in the annual rate of installations. Germany has about 125%more installed wind energy capacity than either the U.S. or Spain, which are virtually tied for second.

Germanys subsidies are key to its wind power leadershipVoice of America 12-25-2007; German Investments in Clean Alternative Energy Pay Off,http://www.voanews.com/english/archive/2007-12/2007-12-25-voa2.cfm

Wind turbines dot the landscape in rural Germany. In some regions, wind energy produces up to 20 percent of the electricity

used in German power grids. Engineer Hendrich Ziese says how much a single turbine can produce depends on the weather."When we have good days, we can [produce] 20,000 kilowatts per hour," Ziese said. "On bad days we make nothing." Germanybegan investing heavily in alternative energy to meet the targets set out in the Kyoto Protocol, the 1997 global environmentalagreement to reduce greenhouse gases. Germany has achieved a 19 percent reduction in CO2 emissions, in part by providingsubsidies to companies willing to invest in new technologies. Hauke Eggers-Mohmann with Notus Energy, which develops windturbines, says the government guaranteed them a fixed price over a 10-year period for alternative energy. "Also it would support withfixed prices not only wind energy, but also other forms of energy, so that it was possible for private companies to develop and

carry out other projects," Eggers-Mohmann said. The government subsidies helped companies develop new energy related

technologies at a time when oil and gas prices were relatively low. Now with petroleum prices at record highs, Germany profitstwice: it produces cheaper alternative energy and exports this technology around the world.

Germanys policies have made them the leader in wind energy

Business Week2-11-2008; The Wind at Germanys Back, Lexis

To see Germany's latest cash crop, take a train across the flat plains between Hannover and Berlin or cruise the waters off thegusty North Sea coast. In both places, you can't miss the rows of windmills marching to the horizon, quietly generating some 7%of the nation's electricity needs--and powering an important new industry.

Thanks to smart regulation, Germany has become a global powerhouse in green energy, producing more electricity from windthan any other country. While the industry owes some of its success to German expertise in fields such as aerodynamics, the biggestboost has come from the government. The nation's energy law guarantees operators of windmills and solar generators an

above-market price for power for as long as 20 years. Other countries have similar policies, but few have applied them as

consistently as Germany. "The crucial point," says Paul Buchwitz, a Deutsche Bank fund manager who focuses on renewable energy,is "you know how much you will get in advance."

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Uniqueness: Investments in Germany now

Germany is expanding their wind power industry investments prove business confidenceMatthew Hall, writer for World Markets Research Centre, 7-11-2008; Private Equity Firm to Invest in German Offshore Wind Farm

Global Insight, In Brief; Lexis

Private equity group Blackstone is to invest 1 billion euro ($1US.6 billion) in developing a wind farm off the coast of Germany.The project will see 80 wind turbines constructed, with a total generating capacity of 400MW in Germany's North Sea

territory. Blackstone will team up with other investors that already hold development rights for the project. The project is expected tobe completed within two years.Significance:The investment will be Blackstone's first in the renewable energy sector, and demonstrates the growing confidenceof investors in such technologies as oil prices continue to climb and governments seek to encourage the harnessing of domestic

energy sources. Offshore wind farms in particular are proving a focus for many European governments. Earlier this weekGermanEnvironment Minister Wolfgang Tiefensee said the government was hoping to build up to 30 offshore wind farms to assist inmeeting newly established renewable energy targets (seeGermany: 7 July 2008: ).



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Uniqueness: Germany = Leader in Solar (PV) Energy

Germany is leading the world in photovoltaic investment and technology by a longshot

The Straits Times 4-30-2007, Germany's solar city; The university town of Freiburg has built up a reputation as a leader in

solar technology, Lexis

With the world seeking solutions to reduce global warming, coupled with the fast depletion of traditional energy sources such

as oil, countries around the world are looking to renewable sources such as solar energy.Singapore recently declared that it would spend $350S million on clean technology research, including a big push for solar power. AbuDhabi has announced that it will build a $350US million ($530S million) solar power plant to be operational by 2009, while Portugalhas opened a solar plant covering 60ha last month. But Germany, which has invested in the technology decades ago, is the marketleader for solar power technology.Mr Thomas Dresel, who is project executive for the city's solar programme at Freiburg's Environmental Protection Agency, told TheStraits Times that Freiburg is possibly also the cradle of the green movement in Germany.It all started in the mid-70s when a plan to build a nuclear power plant here sparked massive protests. The anti-nuclear movementattracted liberal activists as well as alternative energy enthusiasts not just from Germany but also from around the world. Thegathering of such like-minded people sparked the development of specialised institutes such as the Fraunhofer Institute for Solar

Energy Systems as early as 1981. A forward-thinking mayor started marketing Freiburg - then suffering from a relative lack ofeconomic activity - as a 'solar city'. Incidentally the area also has one of the highest sunlight hours in Germany. Some 30 years on,Germany - the largest solar market in the world - produced 750MWp (Megawatts peak) or 52 per cent of the world total lastyear. Japan is second, with 330MWp, or23 per cent of the market. Some 1,400,000 sq m of solar thermal collectors were installedlast year, about three-quarters of them at houses in Germany.In addition, about 750 MWp of solar photovoltaic panels were alsoinstalled last year. Solar thermal collectors are used to heat water and for general heating, while photovoltaic panels are used togenerate electricity. In recent years, a coalition government of the Social Democrats and the Green Party had placed environmentalpolicies high on the agenda. Policies such as the so-called 100,000 roofs programme in 1999 to 2003 were launched, offeringinterest-free loans for the installation of solar panels. In addition, the Renewable Energy Sources Act in 2000 requires all solarenergy captured by photovoltaic panels to be fed into the power grid. The Act also orders power companies to pay a higher tarifffor solar power sold to them. That means that households generating electricity from solar energy will sell it to the power grid at ahigher price than what they would pay for electricity drawn from the grid.

The feed-in tariff has made solar a safe investment in GermanyThe Montreal Gazette 7-31-2007; An unlikely hotspot, Lexis

The law has also since served as a model for other countries including Spain, Portugal, Greece, France and Italy.Germany's PV systems generate about 3,000 megawatts of power - 1,000 times more than in 1990. Asbeck said politicaldecisions in the 1990s made it easy and even lucrative for ordinary people to put the systems on their roofs. At the heart of the

scheme is a "feed-in tariff" giving anyone who generates power from solar PV, wind or hydro a guaranteed payment from the

local power company. The power firms are obliged to buy solar electricity for 49 cents per kilowatt hour - or nearly four times

market rates. This can work out at a better return than putting money in the bank. So despite the cloudy weather, theinvestment pays for itself within 10 years.



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Uniqueness: Germany = Leader in Solar PV Energy

Germany has encouraged photovoltaic solar systems they dominate the PV market

Donald Aitken, PhD and former Senior Fellow at Dartmouth College, 5-10-2005, Germany Launches Its Transition To AllRenewables, http://www.sustainablebusiness.com/index.cfm/go/news.feature/id/1208

Photovoltaics (PV):Germany's accomplishments in the development of solar energy for both electricity and water heating areas dramatic as those for wind, despite starting somewhat later. This achievement is especially remarkable considering thatGermany's average solar potential is about 1000 kilowatt-hours per square meter per year - about half that of the U.S. Nevertheless,Germany was the fastest growing PV market in the world in 2003, when over 20,000 new PV systems were installed,

representing a capacity of 145 MW peak (MWp) and bringing the end-of-year total to over 400 MWp of PV installed. In 2004,Germany installed another 25,000 PV systems, totaling 300 MWp, double the 2003 installation pace and exceeding an annual

investment of 1 billion euros (US$1.3 billion) for PV for the first time. The PV industry was effectively spurred by the "100,000roofs program," which from 1999 to 2003 produced 65,324 PV systems totaling 342 MW of capacity. The aim was to stimulate a newbuilding-integrated PV (BIPV) market. The government initially stimulated this program by offering interest-free 10-year loans,waiving the last installment payment and guaranteeing a "feed-in" incentive of 8.5 euro cents per kilowatt-hour. With the beginning of

the EEG on April 1, 2000, the PV incentive price jumped to 50.62 euro cents (US 66 cents). By the end of 2004, Germany had becomethe world's No. 2 PV producer and the world's No. 1 PV installer. The amended Renewable Energy Act of 2004 assures continuedactivity in the German PV market. The base incentive remains 45.7 euro cents. This incentive is increased to 54-57 euro cents (US 70-75 cents), depending on the size for PV systems mounted on building roofs (the upper size limit has been eliminated). The incentive isfurther increased to 59-62.4 euro cents (US 77-81 cents) for PV systems integrated into building surfaces other than roofs (eg., walls).Because the upper size limit for PV systems has been eliminated, even large ground-mounted systems are assured a revenue

stream of 45.7 euro cents (US 59 cents) for 20 years plus the year of commissioning. The law also requires grid operators to givepreference to renewable energy generators, and to guarantee connection to the grid even if that means upgrading their transmissionfacilities. They can recover their costs in the fees they charge for use of their facilities.

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Germany is a leader in the solar world Mulhausen proves

Jamais Cascio, staff writer for WorldChanging, 12-22-2004; Alternative Energy in Germany,

http://www.worldchanging.com/archives/001780.html

Theworld's biggest solar power plant went online in Mulhausen, Germany this month, putting out 6.3 megawatts of power. Theplant is part of a set of facilities in Bavaria which produce a total of 10 megawatts of power using 57,600 silicon solar panels, built bythe Berkeley, California, PowerLight corporation. (PowerLight also built the solar array on top of San Francisco's Moscone Center.)Another 10 megawatts will be coming online soon in a four-location project funded by Michelin. Beyond solar, Germany is alsothe world's leading producer of wind power, with over 16,000 windmills;power generation capacity from wind amounted to

14,609 megawatts in 2003, up from 334 megawatts in 1993. Renewable power sources currently produce more than 10 percentof the nation's energy, a level which is supposed to double by 2020 and reach 50% by 2050. It will likely improve faster that that-- as of projections from 2000, the 10% point wasn't supposed to happen until 2010.

Germanys industry is at the forefront of European solar development despite its geography

ReinerGaertner, staff writer for Wired, 7-9-2001; Germany Embraces the Sun

http://www.wired.com/science/discoveries/news/2001/07/45056

FREIBURG, Germany -- Germany is not necessarily known as the sunniest spot in Europe. But nowhere else do so many peopleclimb on their roofs to install solar panels. Since the introduction of the Renewable Energies Laws (EEG) in April last year,Germany has been experiencing a remarkable boom in solar energy. "When my cab driver gives me a lecture about solartechnologies, I know I am back home," raved Rian van Staden, executive director of theInternational Solar Energy Society (ISES)about Freiburg, the sunniest city in Germany and host to theInterSolar conference July 6-8. The little university town in southwestGermany, about 40 miles away from the French and Swiss borders, is Germany's "Solar Valley." A gigantic solar panel at the trainstation greets visitors to Freiburg. The city also boasts the new Zero Emissions Hotel Victoria, which is the first European hotel to runcompletely on alternative energy sources. Even Freiburg's premier league soccer stadium is solar powered. More than 450environmentally oriented companies and institutions take advantage of the favorable weather, research, networking

opportunities and progressive political climate in Freiburg, which makes even Berkeley -- its soul mate in the San Francisco BayArea -- look comparatively conservative. The German solar industry has exploded in the last two years.DFS(Deutscher

Fachverband Solarenergie), the German Association for Solar Energies, recently reported a 50 percent rise in solar panel ordersduring 2000. German solar companies sold 75,000 solar systems in 2000 in addition to 360,000 solar systems installed

previously, and photovoltaic installations increased fourfold from 1999. Solar power means big business in Germany: Solarcompanies generated revenues of $435 million in 2000. According to DFS, Germany -- with its 54 percent market share -- is by far theEuropean leader in produced solar collectors.

http://www.worldchanging.com/archives/001780.htmlhttp://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2004/12/20/MNGRAAEL4B1.DTLhttp://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2004/12/20/MNGRAAEL4B1.DTLhttp://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2004/12/20/MNGRAAEL4B1.DTLhttp://powerlight.com/http://powerlight.com/http://www.solarbuzz.com/news/NewsEUPR195.htmhttp://www.electricityforum.com/news/jan04/germanwind.htmlhttp://www.electricityforum.com/news/jan04/germanwind.htmlhttp://www.electricityforum.com/news/jan04/germanwind.htmlhttp://www.wired.com/science/discoveries/news/2001/07/45056http://www.wired.com/science/discoveries/news/2001/07/45056http://www.ises.org/http://www.ises.org/http://www.intersolar.de/indexe.htmlhttp://www.intersolar.de/indexe.htmlhttp://dfs.solarfirmen.de/engl_page1.htmlhttp://dfs.solarfirmen.de/engl_page1.htmlhttp://dfs.solarfirmen.de/engl_page1.htmlhttp://www.worldchanging.com/archives/001780.htmlhttp://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2004/12/20/MNGRAAEL4B1.DTLhttp://powerlight.com/http://powerlight.com/http://www.solarbuzz.com/news/NewsEUPR195.htmhttp://www.electricityforum.com/news/jan04/germanwind.htmlhttp://www.wired.com/science/discoveries/news/2001/07/45056http://www.ises.org/http://www.intersolar.de/indexe.htmlhttp://dfs.solarfirmen.de/engl_page1.html


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Government incentives have created a boom in Germanys solar industry

The New York Times, 5-16-2008; Germany Debates Subsidies for Solar Industry,

http://www.nytimes.com/2008/05/16/business/worldbusiness/16solar.htmlYet the sun was shining here the other day and nowhere more brightly than at Q-Cells, a German company that surpassed Sharplast year to become the worlds largest maker of photovoltaic solar cells. Q-Cells is the main tenant among a flowering cluster of solarstart-ups here in an area known as Solar Valley. Thanks to its aggressive push into renewable energies, cloud-wreathed Germanyhas become an unlikely leader in the race to harness the suns energy. It has by far the largest market for photovoltaic systems

which convert sunlight into electricity, with roughly half of the worlds total installations. And it is the third-largest producer

of solar cells and modules, after China and Japan. Now, though, with so many solar panels on so many rooftops, critics sayGermany has too much of a good thing even in a time of record oil prices. Conservative lawmakers, in particular, want to pare backgenerous government incentives that support solar development. They say solar generation is growing so fast that it threatens tooverburden consumers with high electricity bills. Solar-energy entrepreneurs warn that reducing incentives will depriveGermany of its pole position in an industry of the future. As proof, they point to the United States and Japan, which were oncesolar stars but have faded as their government subsidies became less enticing.

http://www.nytimes.com/2008/05/16/business/worldbusiness/16solar.htmlhttp://www.nytimes.com/2008/05/16/business/worldbusiness/16solar.htmlhttp://www.nytimes.com/2008/05/16/business/worldbusiness/16solar.html


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German alternative energies are the most price-competitive

Sophie Horsfall, fund manager of the F&C Stewardship International Fund; 1-1-2007; Winds of Change, Pensions Management,

Lexis

Despite the UK taking the lead internationally in terms of environmental awareness, government support is still lackingcompared with countries like Germany, where the state has been successful in accelerating the adoption of new energy-

efficient technologies and in nurturing the alternative energy industry to the point where it is now the best in the world.

Several years ago, the German government introduced legislation and attractive feed-in tariffs in order to incentivise andaccelerate the adoption and use of different types of alternative energy.Excess electricity generated can be fed into the nationalgrid, although the scheme allows electricity bills to be only partially offset. The German government has also offered various taxincentives to help new alternative energy companies, bringing costs and hence the price per kWh (kilowatt/hour) of their energymore in line with conventional sources. The government has been so successful in supporting this type of company that many havebecome profitable, and government support can now be eased.



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Germanys policies have effectively incentivized solar energy and attracted business

US Department of Energy, September2004; Our Solar Power Future

Effective policies sustained over time increase solar power production, dramatically growmarkets, improve technology, and reduce costs. Programs in Germany, Japan, and California prove it.In April 2000, Germany introduced a feed-in tariff that offered solar power producers about 50 Euro cents for every kWh

fed into the utility grid and guaranteed this price for 20 years. Each year, this guaranteed price is reduced by 5% for new contractsto encourage solar power equipment manufacturers to reduce technology costs. This feed-in tariff, combined with low-cost loansavailable in the 100,000 Roofs Program, has had a strong, positive impact on Germanys solar power market, expanding it

from less than 20 MW per year to 130 MW per year. The long-term commitment of the program attracts investors and

gradually creates sustainable solar power markets. The cost is spread over the entire electricity user rate base so that utilities

are not negatively impacted and the government does not have to appropriate money annually.



17/69



Germanys solar industry is still expanding

The Guardian 5-16-2008, Solar future brightens as oil soars,

http://www.guardian.co.uk/environment/2008/jun/16/renewableenergy.energy

Soaring oil prices have led to such a boom for solar power that the industry could operate without subsidies in just a few years,according to industry leaders. At the solar industry trade fair in Munich over the weekend, there was growing confidence that the holygrail known as "grid parity" - whereby electricity from the sun can be produced as cheaply as it can be bought from the grid -is now just a few years away. Solar photovoltaics (PV), which convert sunlight into electrical power, have long been dismissed astoo expensive to make a meaningful contribution to the battle against climate change. But costs are falling as PV productionbooms, and with electricity prices rising rapidly in line with soaring oil and gas prices, demand for solar panels is increasing sharply.Germany, the world leader in PV thanks to its "feed-in tariff" support, installed 1.1 gigawatts of capacity last year - theequivalent of a large power station. It now has nearly half a million houses fitted with PV panels. The feed-in tariff pays people withsolar panels above-market rates for selling power back to the grid. "High oil prices have boosted demand even more. Themarket will probably expand another 40% this year," said Carsten Krnig, of the German solar industry association, referring toboth PV and solar thermal systems, which produce hot water. He said his previous assumption - that grid parity would be reached in

Germany in five to seven years - now looked very conservative since it allowed for only a 3% rise in electricity prices each year. Inmany countries increases of 20% a year are becoming the norm. All the companies at the Intersolar fair are planning large increases inproduction of solar panels. The China-based Suntech, the world's biggest maker of PV panels, plans to double production from540MW this year to 1GW in 2009. Jerry Stokes, head of Suntech Europe, thinks grid parity in Germany can be reached within fiveyears. In California and Italy, where there is lots of sun and high electricity prices, he said grid parity for PV systems had already beenachieved."The great thing about solar power is that although you have an upfront cost, the fuel is free and is not controlled byanother country," he said. PV costs were falling rapidly and would continue to do so as the efficiency of panels improved andinstallation costs dropped, Stokes said. Moreover, the price of silicon - which can be 70% of panel costs - is also likely to fall as newproduction comes onstream.

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18/69



Germanys domestic solar industry is thriving because of incentivizing legislation

Sin Harris, science and technology journalist based in the UK, 2007; German legislation generates photovoltaic leadership,

http://spie.org/x17246.xml

What's more, Germany is not just the location for foreign PV businesses. According to Ralf Segeth, senior manager for renewableenergies and resources for the German government organization, Invest in Germany, approximately 60 percent of the PV companiesin the country are home grown. These include businesses such as Wacker Chemie, Q-Cells, Solarwatt, Schott Solar, Wrth Solar,and Solarworld, covering all parts of the PV technology supply chain. "The majority of the companies in PV are still of German originbecause Germany was an early mover in this area," Segeth points out.The strength of PV technology in Germany is reflected in its figures. Analysts place the country as by far the largest PV

market, with a turnover of 3.7 billion in 2006 and expected double-digit growth rates for the upcoming years, according toInvest in Germany. Indeed PV has become such big business, especially in eastern Germany, that people have even begun to predictthat it could overtake Germany's automotive industry in size.One of the biggest factors in many companies' decisions to base their facilities in Germany is the results of national legislation

that was passed in 2000. Germany'sRenewable Energy Sources Act (Erneuerbaren-Energien-Gesetz, or EEG) requires electricity

companies to buy a certain amount of electricity derived from renewable sources such as solar power and to pay above marketrates for it. The effect of this law has been to enable solar electricity companies to compete with those providing electricityfrom fossil fuels and to help push the adoption of this electricity source by consumers.

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Despite bad weather, Germanys solar industry is tops in the world

Unplugged Living 8-7-2007; Germany Top In Generating Solar Power, Lexis

Aug. 3, 2007 (b5media delivered by Newstex) -- Despite the country being one of those with more cloudy skies than sunny days,Germany tops all other countries in the world when it comes to generating solar power. This is according to some data asreported by ShortNews.com. Only a third of the whole amount of daylight that Germany receives in a year is sunny and the restkeeps the country under heavy clouds. What is interesting though is the fact that the European country holds 55% of the share ofphotovoltaic energy that the entire world has produced. What the country does to create such a huge amount of solar power is

it spreads out solar panels and this absorbs the sun's power and transforms it into something useful. The officials of the

country have also run laws wherein those companies who would be using and investing in solar power would be given

incentives. That has also helped in making the country the leader in generating solar power. [Via ShortNews.com]>[Image from TechRepublic] Share This>



20/69


Uniqueness: Germany = Leader in Solar Thermal Energy

Germany is at the forefront of the solar thermal industry

Donald Aitken, PhD and former Senior Fellow at Dartmouth College, 5-10-2005, Germany Launches Its Transition To AllRenewables, http://www.sustainablebusiness.com/index.cfm/go/news.feature/id/1208

Solar Thermal Water Heating: Germany also leads Europe in total and annual installations of solar thermal collectors for waterheating. Interest in solar water heating was boosted by the increase of the subsidy, effective February 1, 2003. 2003 sales totaledabout 600 million euros. In 2004, 740,000 more square meters were added, about 80% of them for domestic water heating and 20%for space heating. To keep this sector expanding and encourage applications on apartment buildings, the government isdeveloping a Renewable Heating Act. Whereas the EEG raised money for PV by spreading the costs proportionately over all utilitydistricts, the Renewable Heating Act would raise money with a country-wide tax on oil and gas used in the heating sector, usingthis revenue to provide an incentive payment per kilowatt-hour of heat generated by solar thermal systems.

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Uniqueness: Germany = Leader in Biomass

Legal reforms in Germany are promoting investment in biomass and working


Germany's legal reforms also promote biomass. Investors in this sector can receive feed-in tariffs of 7.79-11.67 EURCent/KWhfor electricity from biomass. There are also bonus incentives to encourage the use of sustainable raw materials, or thesimultaneous use of biomass in a combined heat and power (CHP, or co-generation) plant.The legal reforms further add to Germany's attraction to investors in the biomass sector. An increased domestic demand forbiomass technology and products is bringing major investors to Germany. The climate package also calls for the promotion of

heat from renewable sources. These laws require that new buildings have heating systems deriving heat from renewable sources.Financial incentives will be made available to equip older buildings with such technologies. These laws provide a ready made market,plus EUR500 million of available funding, for investors in energy efficient heating technologies such as solar thermal heating.



22/69


Uniqueness: Europe = Wind Energy Leadership

Europe is leading the wind power market through incentives

Platts Oilgram News 4-11-2008; Global wind power capacity rises on new installations, Lexis

Global wind power capacity rose 27% in 2007 to more than 94,100 MW, led by capacity additions in the EU, the US and China,the Washington-based Worldwatch Institute said April 10.New wind installations were second only to natural gas in the US as a source of generation and were the leading source of newcapacity in the EU, Worldwatch, an independent research organization, said. In China, the estimated 3,449 MW of wind turbinesadded last year pushed the country past its government's wind power target for 2010, the group added.The addition of a record-breaking 5,244 MW of wind capacity in the US in 2007?enough to power 4.5 million US homes?was drivenby the federal production tax credit and by renewable energy mandates in 25 states and the District of Columbia, Worldwatch said. Itsaid US wind capacity now stands at 16,818 MW, second only to Germany."If Congress acts quickly to extend the tax credit, the US will likely pass Germany to lead the world in wind power within the nexttwo years," said Janet Sawin, a Worldwatch senior researcher. The federal production tax credit for wind energy is set to expire at theend of this year.Germany remains the world leader in wind power capacity, with 22,247 MW, or almost 24% of the global total, but it

experienced a lackluster year in 2007, Worldwatch said. Still, renewables now provide more than 14% of Germany's electricityneeds, with about half of this coming from wind. Spain, which led Europe in new installations in 2007, now ranks thirdworldwide in total wind capacity with 15,145 MW, the group said.France, Italy, Portugal, and the UK all experienced significant growth last year as well. In all, EU wind power capacity rose

18% in 2007, and the region is home to 60% of global installed capacity, according to Worldwatch.



23/69



EU renewables goals set the wind industry standard

Space Daily 4-2-2008, With Ambitious EU Legislation, Wind Energy Can Provide Huge Benefits To Europe, Lexis

"Wind has delivered the most promising results out of all renewable energy technologies so far, with 57 GW of total capacityinstalled in the EU by the end of 2007. In order to ensure that this trend continues, we need to have a secure and favourable EUlegislative framework", EU Energy Commissioner Andris Piebalgs told delegates at the opening session of the European Wind EnergyConference (EWEC) today in Brussels.The EU Commissioner - Chairman of the EWEC 2008 Conference also emphasised the need to consider renewable energy solutionsbeyond 2020 and far into the future.A swift adoption and implementation of the European Commission's proposed Renewable Energy Directive is essential to

ensure a secure, sustainable and competitive energy future in Europe, delegates heard this morning. Decision-makers at nationaland European level stressed the importance of a stable, flexible legislative framework. They outlined their vision for the EUlegislation and how this will deliver a new generation of energy supply.The European Commission's proposed Renewable Energy Directive has generally been well received by the wind energy

sector, although some improvements could be introduced by the European Parliament and Member States. Furthermore, it still

remains to be established beyond any doubt that Member States are legally entitled to remain in control of their national mechanisms.Speakers at the opening session of EWEC retained the overall positive note as they presented their views on how such legislationcan help achieve the EU's binding target of 20% renewables in the energy mix by 2020.



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Wind energy is price-competitive and feasible on a wide scale in the EU

Space Daily 4-2-2008, With Ambitious EU Legislation, Wind Energy Can Provide Huge Benefits To Europe, Lexis

Arthouros Zervos, President of EWEA, looked at the current wind energy situation and presented the association's new report, PurePower: wind energy scenarios up to 2030. The report introduces development pathways for wind energy up to 2010, 2020 and 2030,studying the probable effects on electricity, greenhouse gas emissions and the EU economy.He said, "There is no contradiction between economic growth and large-scale deployment of wind energy - on the contrary.Wind energy is a precious commodity that brings numerous benefits to our society. Not only does it revitalise the economy, it

also creates new jobs, reduces EU dependency on imported fossil fuels, and facilitates better functioning electricity markets -

which is desperately needed."

Wind energy currently meets 3.7% of EU electricity demand. Pure Power shows that the European Commission's goal ofincreasing that share to 12% by 2020 is certainly achievable. In 2007, wind power capacity in the EU increased by 8.5 GW, and onaverage, wind power capacity needs to increase by 9.5 GW per year over the next 13 years to reach 180 GW and meet 12-14%of EU power demand in 2020.

180 GW of wind in 2020 would produce 477 TWh of electricity, of which 133 TWh would come from offshore wind. This is

equivalent to supplying the needs of 107 million average EU households.Wind power on this level would represent 18.1% of the total installed electricity-generating capacity in the EU, which is over half ofthe renewables contribution needed for the binding target. With the appropriate legislation, real benefits - economic andenvironmental - can be generated by wind energy for the whole of Europe.



25/69


Uniqueness: US down, Germany up

Germany is at the top of the solar industry while the US is falling behind

US Department of Energy, September2004; Our Solar Power Future

World photovoltaic shipments grew by 32% in 2003, and the industry generated $4.7 billion in revenue. Solar electric systems

for homes and businesses dominated the market in the United States, Europe, and Japan as the volume of sales surpassed 740

megawatts (MW). In 2004, the solar power industry expects to surpass the milestone of 1,000 MW ofproductionenough capacity to power all the households in a city the size of Atlanta, Georgia.In part, market growth was driven by innovations in both technology and manufacturing that continue toincrease efficiency, boost product lifetime and reliability, and make installation easier. As a result, averagecosts and prices declined to make solar power more competitive with conventional energy sources. Solarelectric power has matured into a robust, competitive industry with worldwide markets ready for sustainedrapid growth.Unfortunately, the United States has lost its lead in solar power development. In 1997, U.S. solar power manufacturers

captured 100% of the domestic market; in 2003, they captured only 73%. In 1997, U.S. manufacturers captured more than

40% of the world market; in 2003, they captured a mere 14%. And after years of growth, shipments in 2003 from

U.S. manufacturers fell by more than 10%. Meanwhile, shipments from Europe grew by 41% and shipments fromJapan by 45%.Increasingly, policies in Europe and Japan are driving technology and market development. The U.S. solar industry is

compelled to look overseas for markets and to shift critical manufacturing investments away from the United States. WhereU.S. solar markets are supported by state policies, a growing share of the installed solar power systems arebeing imported. And Europe and Japan reap the benefit of manufacturing jobs and local economic development created bysolar technology.



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Uniqueness: Auto Industry

The US is in an eco-race with Germany and Japan for alternative energy leadership

Automotive News 1-28-2008, Panelists: U.S. entering green-technology race, Lexis.

The United States is on the verge of a green technology race that will rival the space race of the 1950s and 1960s, a panel ofexperts said. But if the nation fails to act quickly, it risks losing a leadership role.Fuel-economy legislation is sparking the race, Dean Harlow, president of engineering firm Ricardo Inc., said last week at theAutomotive News World Congress. ``Just as Kennedy pushed NASA to the moon in a decade, Washington has now thrown down thegauntlet for the auto industry,'' said Harlow. He was a member of a panel discussing the risks and opportunities of ``greentechnologies.'' `We're in a race for eco-innovation,'' he said. But without more investment, alternative vehicle technologies anddevelopment of hydrogen-powered cars will leave the United States, the head of General Motors' fuel cell activities warned. Othercountries are investing heavily in green technologies and could surpass the United States, GM scientist Byron McCormick said.``There is a real chance that could happen. If that happens, what happens to the jobs, to the learning and the skills that go with it?''McCormicksaid the United States has a technology momentum in the field. ``We have a wonderful opportunity to put theUnited States in a leadership position.'' He is the executive director of GM Powertrain's fuel cell activities. McCormick identifiedGermany, China and Japan as countries that are poised to benefit. They could gain the infrastructure that comes with global

leadership in alternative vehicle technologies.



27/69


Uniqueness: German LegislationCompetitivenessGermanys feed-in tariff is key to the solar energy industry

The Montreal Gazette 7-31-2007; An unlikely hotspot, Lexis

It rains year-round in Germany. Clouds cover the skies for about two-thirds of all daylight hours. Yet the country has managed tobecome the world's leading solar power generator. Even though millions of Germans flee their damp, dark homeland for holidaysin the Mediterranean sun, 55 per cent of the world's photovoltaic (PV) power is generated on solar panels set up between theBaltic Sea and the Black Forest. So farjust three per cent of Germany's electricity comes from the sun, but the governmentwants to raise the share of renewables to 27 per cent of all energy by 2020 from 13 per cent. It is a thriving industry withbooming exports that has created tens of thousands of jobs in recent years, posting growth rates that surpassed the optimistic

forecasts made by the fathers of a pioneering 2000 renewable energy law. This law, known by the acronym EEG, has helped thiscloudy, rainy country on the northern rim of central Europe become a solar giant. "The EEG was the single most important vehicleto boost the solar energy market," Frank Asbeck, chairman of SolarWorld AG, told Reuters. The law, which offers cash incentivesto people introducing renewable energy sources, was designed to help fight climate change and reduce dependency on fossil

fuels.



28/69


Brink: German Economy

Germanys economy is receding high oil prices are responsible

AFP 7-24-2008; Dollar climbs against euro after dire European data

http://afp.google.com/article/ALeqM5g2w6VI3IPiZQ0GZMUbGuM8pUFFUQ

NEW YORK (AFP) The dollar climbed against the euro Thursday after gloomy economic data darkened the economicoutlookfor the 15-nation eurozone, sparking fears of recession. The euro fell to 1.5683 dollars around 2100 GMT, from 1.5693dollars late Wednesday. The dollar slipped to 107.19 yen from 107.86. Downbeat surveys on eurozone business activity and Germanbusiness sentiment weighed on the single European currency, while the dollar benefited from expectations the Federal Reserve wouldraise interest rates in the near future to curb inflation. Traders said that after a quarter-point hike in interest rates earlier this month tokeep inflation in check, the European Central Bank was now less likely to tighten monetary policy further even though prices wererising at a record pace in the 15-nation eurozone."The latest very weak survey data from the eurozone will surely prevent the European Central Bank from raising interest ratesfurther," said Capital Economics analyst Ben May. "On the face of it, the surveys suggest there is now even a risk of a technicalrecession in the region." Eurozone business activity contracted more sharply than expected in July, hitting the lowest level since justafter the September 11, 2001, terrorist attacks in the United States, a key survey showed Thursday.

The eurozone's purchasing managers index (PMI), compiled by data and research group Markit, slid to 47.8 points in July from 49.3 inJune. The drop, which indicated that private sector activity in the bloc was at the lowest level since November 2001, was worse thanforecasts for a reading of 48.7 points. A separate survey in Germany, the eurozone's biggest economy, showed that businesssentiment plunged to a 34-month low in July amid high oil prices and a strong euro which crimps exports. The monthlybusiness climate index calculated by Munich-based economic research institute Ifo fell below the psychologically key 100 level to97.5 points, from 101.3 points in June. The last time it was below that level was in September 2005. Analysts had forecast a moremodest drop in July to 100.2 points. "For a long time now, the German Ifo survey has presented a much more optimistic picturerelative to other survey data -- in particular the PMIs -- and so this month's release finally represents some significant catch-up to thedownside," said Barclays Capital analyst Nick Matthews. The German data "bodes badly for the region as a whole," said BorisSchlossberg, analyst at Forex Capital Markets. "Sentiment has turned sharply lower as the German economy has finallysuccumbed to the triple-punch combination of higher oil prices, higher interest rates and higher exchange rates," Schlossbergsaid.

http://afp.google.com/article/ALeqM5g2w6VI3IPiZQ0GZMUbGuM8pUFFUQhttp://afp.google.com/article/ALeqM5g2w6VI3IPiZQ0GZMUbGuM8pUFFUQhttp://afp.google.com/article/ALeqM5g2w6VI3IPiZQ0GZMUbGuM8pUFFUQ


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German Econ = Brink

Germanys economy is fluctuating but rising due to a closing trade deficitEU Business

German exports stagnated in February but rose strongly year-on-year, data showed Wednesday, adding to recent evidence thatEurope's largest economy is holding up well despite the rise in the euro.Figures from the federal statistics office showed that exports, adjusted for seasonal effects, were flat from January at 84.6 billioneuros (133 billion dollars), but were up 9.0 percent year-on-year. Imports were down by 0.4 percent at 67.7 billion euros fromJanuary and were up 7.0 percent from a year earlier. As a result Germany's trade surplus edged lower to 16.9 billion euros from17.1 billion in January. Analysts polled by Thomson Financial had expected a much bigger drop, to 15.2 billion euros.Strongexports to other countries with the euro helped to attenuate the effects of the single currency's strong rise against othercurrencies.



30/69


Link: Wind Energy

Increased US wind power capacity will overtake Europes lead

Joe Truini, writer for Waste News, 6-11-2007; Climate concerns make wind energy attractive option, Lexis

The time is ripe for wind power, and it is well-positioned to take advantage of a positive political and social climate. ``The starsseemed to be aligned,'' said Karl Rabago, director of government and regulatory affairs for Arlington, Va.-based AES Corp. Despite aslow start, U.S. wind energy is poised to take the global lead in installed generation capacityby 2010, perhaps sooner, said SteveSawyer, secretary general of the Global Wind Energy Council. ``The Europeans know it. They'll soon be eating your dust,'' he saidPolitical and public opinion is shifting toward adopting carbon regulations to address climate change, and wind power is the

only form of affordable energy positioned to help, Sawyer said. New nuclear plants would be impossible to site and build by 2020,and commercial carbon capture technology for coal-fired power plants is at least 10 to 15 years away, which is the critical time toaddress climate change, he said. `Ì believe the key to this 21st century energy challenge begins and ends with renewable energy,especially wind power,'' said Iowa Gov. Chet Culver during the Windpower 2007 Conference & Exhibition June 3-6 in Los Angeles.`À new economy is being born,'' said Carl Pope, executive director of the Sierra Club. ``Wind is going to be part of that economy.''But the industry has to meet the challenge, or it will be a major opportunity squandered, said Montana Gov. Brian Schweitzer. `Ìf you

get it right, you will be known as the greatest generation,'' Schweitzer said. `Ànd if you get it wrong, your grandkids will fight a warsomeplace else.'' Climate change is the catalyst that is increasing demand for wind energy and creating a favorableenvironment for wind power development on Capitol Hill and Wall Street, said former Democratic Sen. Tom Daschle. Ì actuallythink it could be bigger than the entire dot-com revolution,'' he said. Global warming is hitting closer to home as political and evenreligious leaders increasingly recognize the threat, said Rep. Jerry McNerney, D-Calif. `Ìn the past, we've relied on fear to cooperateon threats of national and global significance,'' he said. `Ìf we follow that path of cooperation, we will open up a new chapter inhuman history.'' A large-scale transition to wind energy could be the greatest economic boon the nation's ever seen, improvingthe nation's energy security while creating manufacturing jobs, Schweitzer said. He has a plan to develop 3,500 megawatts ofwind generation capacity in Montana to sell electricity to Los Angeles, Las Vegas and Phoenix. Montana already exports most of itselectricity and will take advantage of its status of windiest state to sell more, he said. ``Wind power is not just for hippies sitting onmountaintops smoking marijuana,'' Schweitzer said. `The market wants it and we'll supply it.''



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Link: Wind Power

American wind power competitiveness attracts investment away from Europe

International Herald Tribune, 11-8-2007; EU Firms Are Attracted to Open Space and Generous Subsidies for Green

Energy,http://www.geni.org/globalenergy/library/technical-articles/generation/wind/international-herald-tribune/us-winds-morph-into-a-european-power-play/index.shtml

The European Union has taken the lead on many climate change issues - from ratifying the Kyoto Protocol to passing laws torequire and encourage the development of renewable energy. Why, then, are so many European energy companies looking toinvest in the United States? For Antonio Mexia, the chief executive of Energias de Portugal, the answer is simple. "The UnitedStates is the fastest-growing market in the world for wind power," he said. "If we want to be a leader, we have to be here." In July,Energias paid nearly $3 billion to buy Horizon Wind Energy from Goldman Sachs. The purchase, Mexia's first foray into the UnitedStates, doubled the amount of wind power in Energias's portfolio, giving the once sleepy Portuguese utility the fourth- largest wind-farm capacity in the world, behind Iberdrola of Spain, FPL Energy - an affiliate of Florida Power and & Light in the United States -and another Spanish company, Acciona Energia.All the biggest players in wind power are focused on the United States. This year, Acciona bought the wind farm developmentrights of EcoEnergy of Elgin, Illinois, and Iberdrola bought CPV Wind Ventures of Silver Spring, Maryland. Iberdrola also added the

wind development company PPM Energy of Portland, Oregon, to its business through its acquisition of a British company,ScottishPower, in April, and in 2006 it bought Community Energy of Radnor, Pennsylvania.BP, based in Britain, also added to its green portfolio in 2006, buying two U.S. wind developers, Greenlight Energy and Orion Energy.In October, the German company E.On bought the North American wind farms of Airtricity of Dublin for $1.4 billion. "In Americayou can put up a 200- or 300-megawatt wind park," Mexia said. "You can't do that in Europe" because of the lack of openspace for such large wind farms.

There is also more potential for growth in the United States, where wind farms account for barely 1 percent of installed

generating capacity. In some EU countries, that figure is as high as 10 percent.

The biggest incentive, however, is not the strength and speed of the wind blowing across some states, but a number of laws putin place in about half of the states to encourage the development of renewable energy.At the national level, energy legislation calls for subsidies for wind power producers, in the form of a tax credit. Meanwhile, 2

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