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April 8, 2008

Renewable Energy Jobs Soar in Germany

by Jane Burgermeister
Vienna, Austria [RenewableEnergyWorld.com]

Renewable energy jobs in Germany shot up to 249,300 in 2007, almost double the 160,500 green jobs in Germany in 2004.

"The systematic expansion of renewable energy is not only good from the environmental and climate policy point of view but also for innovation, growth and employment in Germany."

-- Sigmar Gabriel, the German Minister for Environment

According to revised government figures, as many as 400,000 people could be employed in the renewable energy industry in Germany by 2020. This is 100,000 more jobs than a previous study had predicted due to the boost that the country's economy and exports received as a result of massive investment in the renewable sector.

"The systematic expansion of renewable energy is not only good from the environmental and climate policy point of view but also for innovation, growth and employment in Germany" Sigmar Gabriel, the German Minister for Environment said.

New figures published on March 14, 2008 (Bruttobeschäftigung 2007 by Marlene Kratzat, Dietmar Edler, Marion Ottmüller and Ulrike Lehr) show that solar sector jobs are being added the fastest but that employment in all green energy segments has been growing rapidly.

Biomass, which accounts for 39 percent of all renewable energy jobs in Germany, employed 96,100 people in 2007, up from 56,800 in 2004.

Jobs in wind power, which accounts for 34 percent of green energy jobs in the country, grew to 84,300 in 2007; in 2004, 63,000 people were employed in wind power.

Exports in wind power technology grew to €5.7 billion [US $8.9 billion] in 2007, up 7 percent from 2006. Stronger exports offset a drop in investment in wind farms inside the country as the sector consolidated after years of rapid growth.

The booming solar sector saw jobs grow to 38,600 in 2007 up from 25,100 in 2004 as investment poured into photovoltaic production facilities mainly in eastern Germany.

The geothermal sector saw the number of people employed increase from 1,800 in 2004 to 4,200 in 2006. However, the number of jobs in hydropower have remained more or less steady at 9,400 in 2007 or one percent down from 9,500 in 2004.

Observers say that even these higher job growth estimates for 2020 may be too pessimistic if Germany manages to maintain its current share of exports in renewable energy plants and components in the world's rapidly growing renewable energy industry.

At least 134,000 jobs in renewable energy created so far in Germany are thought to be a direct result of Germany's renewable energy law, which gave a big stimulus to investment.

In addition to jobs in renewable energy plant production and maintenance, there were 4,300 jobs in renewable energy-related research, scientific funding bodies, public relations and local government in 2006.

Figures published by the German government show that renewable energy sources accounted for 14.2 percent of the gross electricity consumption of the country in 2007. The increase of 20 percent from 2006 is enough to power a city the size of Hamburg.

Renewable energy sources generated 222 terawatt hours (TWh) in 2007 in electricity, heating and fuels, accounting for 8.5 percent of the country's total energy consumption, and saving 114 million tons of carbon dioxide.

To train young people in the skills needed for the booming renewable energy sector, the government is also expanding a program to sign up more companies.

So far 5,100 training places have been announced under a joint government-industry initiative "Environment creates perspectives" [Umwelt schafft perspektiven] launched in November 2006.

Jane Burgermeiser is a writer based in Austria.

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Reader Comments (16)
 
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April 8, 2008
"Jobs in wind power, which accounts for 34 percent of green energy jobs in the country, grew to 84,300 in 2007; in 2004, 63,000 people were employed in wind power."

I always heard that Wind had a small employment base. That entire wind farms had only a hand for employees. Admittedly, my information was limited to articles talking about the Wind Farms with side mentions as to the number of employees.

This author may have included a broad definition of employment that includes a portion of the supple chain, such as steel mills rail roads, petro plants, and support staff, which could be reasonable. The gross employment figures for the entire industry are significant.

In the USA, we are supposedly putting up 3 or so large Windmills every day. I wonder what are the employment base is for our country.
Comment 1 of 16
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April 8, 2008
Apparently Ms. Burgermeister uses the term "almost double" to indicate a 55% increase; this is rather lax usage. The article could have provided statistics on job losses in the non-renewable energy sector to provide a more complete picture of the impact of energy source changes on employment.
Comment 2 of 16
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April 8, 2008
Jobs are a bad thing, not a good one. It is the products of our labor that we want, not the labor itself. People often fail to see the distinction. Any idiot of a government can "create jobs", but can they create wealth? The government could pay people to dig holes and fill them back in all day. It sure would create lots of jobs, but no value.

Our goal should be to create lots of wealth with as little labor as possible. Whenever I see someone claiming that their pet program "create jobs", they are almost always accomplishing the reverse.

Does alternative energy employ more or less people than fossil energy? I don't know. But it isn't a good thing if it does.
Comment 3 of 16
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April 8, 2008
If THIS isn't an endorsement of how enlighted public policy can help create jobs and spur economic development, as well as, reduce the risks we face from our growing reliance on imported fossil fuels and a warming climate, I ask readers to file them here - quickly. Congress should heed these glaring facts and wake up to the economic, national security and environmental benefits of a cleaner energy future. - Silver Spring, MD, USA
Comment 4 of 16
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April 9, 2008
Jeffrey Viola's notion that governments can "choose to create jobs or not" is dubious. Governments have fair visibility concerning the outcomes of spending but very poor visibility concerning the opportunity costs associated with the requisite taxation or borrowing. Additionally, government programs have a tendency to operate on automatic pilot and in perpetuity after any possible utility has past. Such hindrances are rarely conducive to optimal decision making. Given the current low efficiency levels of many renewable energy technologies one might think that money would be best spent on basic research, but the data above state that 4300 jobs [note carefully that this is the total number of jobs not the number of new jobs in this category] were in "energy-related research, scientific funding bodies, public relations and local government." The fact that research is only a part of a small category does not sound promising. Furthermore, Germany's 8+% unemployment rate (which is a 15-year low) is not suggestive of any great aptitude at job creation on the part of their government.
Germany has made commitments to reduce their production of greenhouse gases and phase out its nuclear energy program; it is far from clear that their current policies will allow them to achieve both goals.
Comment 5 of 16
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April 9, 2008
Well a Government can choose to create jobs or not, and if they do, I'd argue it's what comes out of that employment that matters. Germany decides to create jobs in Alternative energy and some of the results are people get exposed to the technology, learn about it, and become skilled in installing it. It "bootstraps" the alternative energy sector. Private companies see opportunity and go on to invest in factories to produce equipment which creates jobs.(German companies are building many such plants even in the USA, from Silicon feedstock plants to Solar cell factories).
Once upon a time, the U.S. Government put alot of people to work sending men to the Moon. One could argue that the Space Program was nothing more than Government "make work" for a bunch of scientists and factory workers with the end result being the acquistion of some very expensive rocks for the Smithsonian - however as we know many advances in electronics, computers, material science, satellite technology, etc. came out of it.
Germany spends state treasure on Alternative Energy. The Germans know that ultimately it will benefit Germany in reduced energy costs, a cleaner environment, and more jobs. I'd say that's money well spent.
Comment 6 of 16
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April 9, 2008
The points I would like to consider about the German government vs. the U.S. government is that the German government has decided to be advanced adopters for technologies much in demand around the world. What techies need to think about is that most of the world are not techies. To quote Malcolm Boyd when someone accused him of being a rational man, "I am not! I'm a mystic!" People want things to function, but they also want them to be pretty and philosophically appealing. My son is a wonderful mix of linear materialistic (his dad) and non-linear out-there (me). It's a good thing he is at MIT and not at Stanford, though I concede Stanford is probably ahead on alternative energy right now. MIT seems to be just getting around to it.
Comment 7 of 16
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April 9, 2008
Steven's idea of hooking 1 million exercise machines to the grid and paying people to run on them would save us enormous amounts in health care costs. To assume that no one would do this is to dismiss those underemployed and demoralized people who would indeed do this. Wealthy people make uninformed assumptions about what poor people do or will do. Not only would we gain the energy from this and save health care costs, but we would heat the buildings where the machines are. In cold climates, you would be able to grow tropical plants. I like the idea.
Comment 8 of 16
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April 9, 2008
Chad Brick has a valid point. Partial employment statistics, in isolation, don't give a clear picture of whether or not the energy industry employment changes are beneficial or not. If we hooked 1 million exercise machines to the grid and drafted the people most in need of exercise to run them, paying them $1 per KWh, employment in the renewable energy sector would skyrocket but little energy would be produced, wages would be extremely low, and no one would want these jobs. if we developed a single fusion energy plant that employed 1000 people and provided the entire nation's electricity needs for $0.01 per KWh, renewable energy employment would plummet yet most people would be well pleased. Rhetorical hyperbole aside, context is crucial in analyzing employment statistics.
Comment 9 of 16
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April 9, 2008
Germany didn't "see" the opportunity and created jobs. It artifically created jobs through it's policy programs. Some of the jobs may have been created naturally but many are clearly subsidised by government policy.
Comment 10 of 16
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April 9, 2008
Mr. Chad writes: "Does alternative energy employ more or less people than fossil energy? I don't know. But it isn't a good thing if it does."
What do you mean by that - it's a bad thing to employee more people in Alternative energy??
Is it a good thing to send BILLIONS of dollars of our wealth every day to countries like Saudia Arabia and other OPEC countries? And now the petroleum industry is building and planning to build more Liquid Gas terminals to import LNG (Liquified Natural Gas) so even more Billions of our wealth can flow out never to return.
Germany produces 14.2% of its electricity TODAY from renewable sources, a 20 percent increase from 2006. Seems to me if they continue at that rate, very soon the majority of their energy will. Good for them!
Now if only the USA would follow their lead.....
Comment 11 of 16
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April 9, 2008
Germany has seen the opportunity that the renewable energy industry offers to provide employement for its population and income from exports, just as it did before that in the electronics and car industries. The benefits are in keeping with its policy to reduce its environmental footprint. They are much better at joining up their policies and aims than most other countries, including mine (UK). They are so far ahead of the rest of Europe, and most other countries, that as usual, we will take decades to catch up. Jobs per-se are not the answer as Chad says, but as part of the overall economy they are essential. What would those 250,000 people be earning and spending if they were not employed in this industry? They will remain employed as long as their products are wanted.
Comment 12 of 16
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April 10, 2008
Nick: The article claims 222 TWh of renewal energy production in electricity, heating, and fuels--not electricity alone (which would have been ~87.5 TWh according to http://www.volker-quaschning.de/datserv/ren-Strom-D/index_e.html).
Electricity production estimates vary significantly depending on the source and year, but the latest IAEA data (2004) for Germany and the UK of 607 TWh and 400 TWh, respectively, suggest per capita consumption levels within 20% of each other. (2005 data from the CIA World fact book are ~520 TWh and 370 TWh for Germany and the UK, respectively, which gives you some idea of the variation in the data depending on the source.)
Comment 13 of 16
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April 10, 2008
222 TWh of green electricity generation in 2007 is an impressive figure, this represents over 25GW average power generation, [222e12/(365*24)] or more than half of the UK average demand which is about 45GW (from BERR - Dukes).
If this represents 14.2% of gross electricity consumption, as indicated in the article, then this equates to a total usage of about 178.5 GW, over 3 times the UK usage, are the Germans all driving electric vehicles?, even allowing for the fact that Germany is about 1/3 bigger than the UK this is still a huge disparity.
Comment 14 of 16
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April 11, 2008
Regarding the job creation issue, Jeffrey makes the point well. Call it artificial subsidy if you like, but Germany have chosen to INVEST in renewable energy. Only part of this is job creation. The point is that oil WILL run out and before that it will become very expensive. It is not relevant how efficient renewables are. They will be what we are left with and Germany will be ahead of the game making it more efficient, applying it, and making money from it. Those who dont copy will be left behind like us here in the UK.
Comment 15 of 16
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April 13, 2008
Remind me, since when did conventional energy sources, and transportation systems NOT receive gobs of public funding?

http://greyfalcon.net/fossiltaxes.png
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Comment 16 of 16
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