Lessons of Germany’s feed-in tariff

German experience can help reverse the UK’s poor record on renewables and underpin our green energy policies • UK government unveils plans to slash solar feed-in tariffs There’s no denying that Germany has been a real pioneer in building a competitive low-carbon economy . Its renewables industry supports 340,000 jobs and replaces €5bn (£4.3bn) worth of energy imports per annum. The UK’s record on the deployment of renewables is pretty dismal by comparison. However, the coalition is determined to turn that record on its head. To underpin our ambitious roll-out of green energy we will be looking closely at Germany to see how we can do better in the UK. We said we’d be the greenest government ever , and we mean it. So I am heading to Germany today for two reasons. The first is to hear from this renewables powerhouse the lessons it has learned from its well-established feed-in tariffs (Fit) scheme in order for the system we inherited to work better for industry, households, small businesses and communities. The second is to share the blueprint for our “green deal” – the biggest ever shake-up in home energy efficiency the UK will have ever seen. The Fit scheme rewards people financially to generate and export electricity they produce from renewable sources like solar panels and wind turbines and is here to stay in the UK, but we can certainly improve the scheme the coalition inherited from the last government. Because the scheme has been running longer in Germany, they’ve already learned some important lessons which we want to hear about. Just as the solar industry has seen a massive boom from Fits here, it’s seen a spectacular increase in Germany too. How we manage this will be crucial to the sustained growth of the industry and to the level of financial support we give to householders, communities and small businesses. I am particularly interested in how hearing from the Environment Ministry how the Germans are adjusting Fits to cope with the rapidly falling costs of solar technology. Taking a pro-active approach to changing tariffs will allow us to avoid the boom-and-bust approach we have seen in other countries and will allow us to capture the benefits of cheaper solar to support more household and community schemes, and a wide range of technologies including community-based wind and hydro and anaerobic digestion on farms. Improving the way the scheme operates will form a key part of our comprehensive review of the Fits that is now underway. The rising oil price has brought in to sharp focus the vital need for the UK to have reliable energy supplies . We need a mix of low-carbon energy to protect ourselves from volatile fossil fuel markets and disruption to supplies from unrest abroad. There is no choice but to have a sustainable energy source that we can guarantee will be there for us when we switch on the lights. One of the most overlooked and underrated weapons in our energy security armour is energy efficiency. Reducing energy demand will be crucial to cutting bills and managing supplies. In short, it’s the energy we don’t use which will be the most reliable. This is why the coalition is introducing the green deal . Germany is keen to hear more about our plans. I will be speaking at an event in Berlin today outlining our approach and the business opportunities it could bring for the UK and Germany alike. Germany has a similar challenge in reducing emissions. Their public and private buildings account for almost 20% of their carbon emissions compared to around one-quarter here. We’re already progressing the energy bill through parliament which will lay the foundations for the green deal; it entered the House of Commons last week. Come 2012, householders will be able to access finance to pay for the upfront cost of having cavity walls filled or expensive measures like solid walls treated . Our aim is to make homes across the country warmer to live in and cheaper to run. Both our countries are determined to make strides in cutting emissions and while the oil price continues to be high, it is only right we learn from each other on the best way to meet our climate goals while at the same time stimulate our economies. • Greg Barker is the UK climate change minister Feed-in tariffs Solar power Wind power Energy Renewable energy Energy bills Germany Europe Green politics guardian.co.uk

Posted by on March 21, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.