Payback Time

Last edited: Thursday, 3rd May 2007, 12:32 pm
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In the UK today, if you want to sell electricity back to the utility companies you do so under their terms. In Germany it's completely different: they have a fixed price system and anyone can sell to the utilities.

Back in 1999 Germany passed an act called the ?Renewable Energy Act?. Under this act, three things are guaranteed:

   * Guaranteed access to the national grid;

   * Guaranteed price to sell to the utility companies;

   * No limitation. Anyone, any organisation, can sell electricity to the utility companies.

In a film, to be shown on BBC World in May, this act and its repercussions on industry and individuals is explored and compared to the situation in the UK. In the UK, if you want to invest in solar panels or a wind-turbine, you have to make a mad dash once-a-month to get to the top of a queue to get a grant. You are then faced with the utility companies who pay measly sums for your excess electricity. In the end, it might take 40-50 years to recoup your initial costs.

In Germany, you can get interest-free loans and together with the fixed prices, you can recoup your costs in 12 years. Needless to say, the utility companies were not very happy with the situation, claiming it was anti-competitive and bad for the economy. However, the result of the act is that it has produced a vibrant industry. For example, the solar sector alone in Germany has revenues of ?2.8billion and employs 45,000 people.

If you want to see the programme, it will be shown on BBC World if you have access to it, otherwise you will be able to purchase it on DVD from the company that made the film TVE (see Related Sites).

 

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