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Don't Miss The Great Solar Debate: Where Does the Global Solar Industry Stand? ×

Most Germans Don't Choose Green Energy

Paul Hockenos
July 10, 2012  |  6 Comments

Even though Germany is way out in front on renewable energy, the transition to a clean energy economy requires more than just the existence of a steady supply of green energy. There has to be demand, too, especially from individual customers.

Germany's energy sector has been liberalized for over a decade. But German consumers have been slow to replace their gas and electricity companies (mostly the old giants that still rely on fossil and nuclear-generated power) with clean energy alternatives. In total, only 10 percent of German households have switched to 100-percent renewable energy providers such as Greenpeace Energy, Lichtblick, Naturstrom, and Elektrizitätswerke Schönau. Admittedly, the clean power options are still somewhat more expensive than their traditional counterparts, but not by much—and the price difference is narrowing.

In response to Fukushima, just like after the 2009 accident at the Krümmel reactor near Hamburg, there was a rash of defections from gas and electric companies with nuclear holdings. "The providers with nuclear in their portfolios were punished," says Sascha Müller-Kraenner of the Nature Conservancy. But the effects of Fukushima did not last long. After peaking sharply in the months following the disaster, the switching rate returned roughly to its former average.

According to a recent survey, 58 percent of Germans could imagine switching from their current energy providers. One in five would "consider" a green-power alternative. So, why don't they do it?

The main reason Germans do not switch providers is still fear. "For years the big utilities waged campaigns explicitly designed to instill this fear. They implied that you could wind up with no power at all if you tried to switch," Greenpeace Germany's Sven Teske told me. "Thus many people have trouble trusting a new company."

"It's often the case with these rogue suppliers that there's lots of fine print and special deals that aren't really deals at all when you read the very fine print", explains Melanie Ball of the NGO ausstieg-selber-machen, which promotes renewable energy alternatives to nuclear.

"What will change the equation", says Green MP Hans-Josef Fell, "and at the same time boost the Energiewende is the further fall in prices of renewables. More people will switch when they're cheaper than the alternatives. But the current government is blocking this."

Greenpeace's Teske says, "We need both sides of the equation, the supply and the demand side to make the energy transition work. We need to beef up renewable energy capacity, which means maintaining the feed-in tariff for many years to come, and also to expand the green power market as much as possible."

Keep in mind that the feed-in tariff makes renewables a privileged part of the energy supply whether consumers, business, or industry ask for it or not. Nevertheless, the demand from below, if accelerated, could help push the Energiewende along.

See Paul Hockenos's own blog on Germany's energy transition Going Renewable

Lead image: Green Energy via Shutterstock

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

6 Comments

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Spiritus Development
Spiritus Development
July 19, 2012
The cuts to the German FiT are right and necessary - it has done its job, it was only ever intended as a market introduction mechanism not a permanent subsidy. Unlike fossil fuels, with renewables as demand increases, pieces are driven down.

The deployment of renewables in Germany today is providing residents and businesses with renewable electricity at a set (including O&M costs) unit price for 10-20 years at a level already well below today's retail market price. Only the other day (I live in Germany) in conversation was a large solar firm exec explaining that while their business model had changed they were busy and currently focused on large utility scale projects as generation costs were highly competitive.
ANONYMOUS
July 13, 2012
The Germany government has supported its renewable energy sector such as wind and solar for years. The most likely reason that the increasingly cut in subsidy to FiT program is because the situation of the economy due to the Europe monetary crisis. For now, the adoption of renewable energy depends heavily on subsidy program provided by each government, while the technology of renewable energy becomes mature. Most of people realize that the benefit of using renewable energy, but would get away when it comes to money.
Gerry Wootton
Gerry Wootton
July 12, 2012
10% of customers at 100% renewable - that's nothing to snear at, especially considering Germany's legacy of coal mining, limited hydro potential, etc. How many other states can make this claim excluding the lucky ones with optimal hydrology although even some of those can not make that claim.

We have to consider hydro primarily(even though Obamacrats don't consider it to be renewable) as that is an established technology - everything else is in the early adopter phase. Germany simply does not have enough renewable energy capacity in order to supply half of its market say so it wouldn't be possible to have 50% of electricity customers using 100% renewable supply even assuming that the remainder used none. Also, 100% renewable isn't realistic since solutions to frequency regulation, load smoothing and other grid support problems typically don't have renewable energy solutions ( solar fanboys take a breath).
Customers of Hydro Quebec come close with 94.7% of overall consumption from renewables while in neighboring Ontario with nearly identical resources only 22% comes from renewables proving the point that it's easy to fall down by means of government policy alone. Remember that incumbents, no matter what they do, have the 'easy button' of proclaiming potential job losses which, even without political payola, has a huge influence. Another specious claim that seems to have a lot of weight is that, in order to do better they'll be 'forced' to charge customers more while further lowering their standard of service - sadly, mediocrity is an easy sale.
ANONYMOUS
July 11, 2012
Something similar was tried in California a few years back. Residential power customers were given the option of purchasing renewable power instead of power from conventional sources. Of course the rates for choosing renewable power were also higher. In the end, fewer than 2% of California residential users opted for higher cost renewables.

Reliability of supply was never an issue. The power delivered to residential users all came from the same grid. If 2% of customers chose renewable power, that just meant that the utility company had to obtain 2% of their power from a renewable source.

Germans are no different than Americans. Most people will say one thing but do another when it comes to money.
Jan de Boer
Jan de Boer
July 11, 2012
I live in Germany and I have never heard of somebody being afraid of their power being cut of when switching to a green power supplier. I think the main reason people stick with their old supplier is plain inertia. It is the same reason people keep their contract with the former state telephone monopolist. It is a big hassle to compare all the offers on the market. There are also price fighters in the market who offer a traditional energy mix, but people don't switch that much to them either.

Another point is that a lot of green electricity is only green on paper. Wind power, solar power, biomass power, and small hydro power are already supported by the German feed in tariffs. All power companies have to buy a proportional part of their power from the FiT supported renewables. So "green" power companies cannot distinguish themselves on the market by selling these. So instead they just buy certificates of existing large hydro plants, mostly in Norway. Of course, this doesn't change the renewables market share either. Only a few green suppliers really make a difference because they invest their profits in new PV and wind turbine installations, thus really increasing the amount of produced renewable energy. A lot of consumers don't distinguish between the two types of green suppliers and find it all a bit fishy, and just stick with the former monopolist that they are used too.

I agree with Sven Teske that there is fear being spread, but not about switching suppliers. This fear is more on a political level and about the FiT program. For example, in preparation to the current cuts and limits to the PV FiT program, articles where planted in the right wing media that portrayed doom scenarios about further rapid growth of PV power.

It is clear that the current German government is more interested in protecting the vested interests of the former state monopolists, than in letting the energy transition succeed.
Peter O'Connor
Peter O'Connor
July 11, 2012
It's a shocker that Germany's government is blocking the transition to cleaner power. What chance have the rest of us if they do it.
Here in Ireland - at the tail end of every pipeline and oil route it's difficult enough to get commitment because of the narrow-minded inbred-idiots that are our policy makers but a powerhouse like Germany should know better.

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Paul Hockenos

Paul Hockenos

Paul Hockenos is a Berlin-based author who has written about Europe since 1989. Paul is the author of three major books on European politics: Free to Hate: The Rise of the Right in Post-Communist Eastern Europe, Homeland Calling: Exile...
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