1. Trans-Atlantic Comparison:
Renewable Energy Opportunities
for American and German Farmers
Neil Veilleux
Meister Consultants Group (MCG)

2. Beyond Biofuels: Renewable Energy
Opportunities for US Farmers
Available at: http://boell.org/web/139-641.html
Heinrich Böll Foundation North America
1638 R Street, NW, Suite 120 Washington, DC 20009, USA

3. How German Farmers Harvest the Fields, the
Wind & the Sun…
Photo Source: www.germanyandafrica.diplo.de

4. Current state of renewable energy in Germany
Share of renewable energy sources in total final energy
consumption in Germany 2008/2009
18.0
Hydropower Wind energy
16.0 1.1
Biomass Photovoltaics
0.7 Solar thermal energy Geothermal energy
14.0 Biogenic fuels
4.5 5.2
12.0
10.0
0.4
Share in [%]
8.0
0.3 0.4
6.6 6.5 0.3
6.0
4.0 7.7
6.8
5.9 5.5
2.0 3.3 3.3
0.0
2008 (15.2 %) 2009 (16.1 %) 2008 (7.4 %) 2009 (8.4 %) 2008 (5.9 %) 2009 (5.5 %)
Electricity * Heat ** Biogenic fuels
* Biomass: solid, liquid, gaseous biomass, biogenic share of waste, landfill and sewage gas; ** Biomass: solid, liquid; gaseous biomass, biogenic share of waste;
Deviations in the totals are due to rounding;
Source: BMU-KI III 1 according to Working Group on Renewable Energies-Statistics (AGEE-Stat); Image: BMU / Dieter Böhme; all figures provisional

5. Development of renewable electricity in Germany
Development of electricity generation from renewable
energy sources in Germany 1990 - 2009
120,000
Hydropower Wind energy
EEG:
Biomass * Photovoltaics
100,000 January 2009
Electricity generation [GWh]
EEG:
August 2004
EEG:
80,000 April 2000
Amendment to BauGB:
60,000
November 1997
40,000 StrEG:
January 1991 - March 2000
20,000
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
* Solid, liquid, gaseous biomass, biogenic share of waste, landfill and sewage gas;
Electricity from geothermal energy is not presented due to the negligible quantities of electricity produced; StrEG: Act on the Sale of Electricity to the Grid; BauGB: Construction Code; EEG: Renewable
Energy Sources Act; Source: BMU-KI III 1 according to Working Group on Renewable Energies-Statistics (AGEE-Stat); Image: BMU / Christoph Edelhoff; all figures provisional

6. Feed-in tariff (FIT) rates (biogas example)
• Guaranteed long-term contracts and interconnection for electricity generators
• Rate based on cost of generation plus reasonable profit
• Decreasing payment levels over time
2009 2010
Technology or Feedstock €/kwh Notes
Base Feed-in tariff (FIT) 0.117 0.116 capacity<150 kW
Premium if technology is agricultural biogas 0.070 0.069 capacity<500 kW
Premium if biogas unit uses 30% liquid
manure feedstock 0.040 0.040 capacity<150 kW
Premium if primary feedstock is "waste from
cleaning natural open spaces" 0.020 0.020 capacity<500 kW
Premium if unit employs cogeneration 0.030 0.030 capacity<20,000 kW

7. German farms and wind & solar PV
• German farmers install 200-250
MW of PV each year
• Influence of “
Maschinenringen”
(German farm machinery
cooperatives)
• More than 20,000 wind turbines
(2009)
• Community-owned wind farms
(45% of market by 2005)

8. German farms and biogas
1,800
1,597
1,600
1,377
1,400
1,271
Installed Capacity (MW)
1,200 1,100
1,000
800
650
600
390
400 333
256
182
200
50 65
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
Source: German Biogas Association 2010

9. German farms and biogas
• 5,000 installations by 2010
• Small (<190 kW) and large
facilities
• Power 3.8 million
households
• Germany is leading the EU
in biogas production

10. Driver #1: Comprehensive national climate
strategy and energy policy
Targets for 2020:
• 40% less GHG emissions (270 Mio. tons)
• 30% share of renewable energy in electricity
• 14% share of renewable energy in heating
• (EU energy package: 20-20-20 by 2020)
Policies:
• carbon taxes in 1999
• feed-in tariffs in 2000
• cap & trade in 2005 etc.

11. Driver #2: Pro-active German Farm Federation
and renewable energy industry
• Deutscher Bauernverband (DBV) is lobbying for
ambitious renewable energy policies
• DBV has recognized climate change as a threat to
industry and society
• Renewable energy industry is well-organized and
collaborative (e.g. German Biogas Association in 1992)

12. Driver #3: Social catalysts in Germany
• Machinery cooperatives (>250) work as rural
cooperatives and advise farmers, aggregate orders, and
organize installations & maintenance.
• Banks: solid calculation by farmers, safe (=good)
business for the banks.

13. Driver #4: Rural communities striving for 100%
renewable energy
• Regional economic development: farmers, planners,
craftsmen
• 100% energy independence for town power and heat
(Jühnde –biogas for CHP, additional wood chips in
winter)
• www.100-ee-kongress.de by Federation of German
Municipalities (DStGB)

14. US Farmers and Renewable Energy…
Photo Source: www.bettergeneration.com

15. The role of renewable energy in the nation’
s
energy supply, 2008
Source: U.S. EIA.

16. US farms and wind & solar PV
• In 2009, farmers & local landowners owned 638 MW
(1.8%) of total installed wind capacity.
• Farmers more likely to lease land to wind farms than
own turbines themselves: lost revenue opportunity.
• Unstable policy: PTC
boom-bust cycles.
• No estimates of PV on
farms, but ~200 MW were
installed in the U.S. in
2007.

17. US farms and biomass
• Biomass makes up 4% of total US energy
consumption (2008)
– At 6%, bioenergy could generate $20 billion in new
income for farmers…
• Biomass share of net renewable electricity
generation: 13.1%;
• Little data on bioheat, but thermal uses of forest
biomass could reduce GHG emissions earlier than
use through electricity generation.

18. US farms and biogas
• Despite environmental and economic advantages, US farms lack
the policy support to build vibrant biogas market…
4,500 1,800
U.S. - #
Facilities
4,000 1,600
Germany #
3,500 facilities 1,400
U.S. - MW
3,000 1,200
Germany MW
MW capacity
Facilities
2,500 1,000
2,000 800
1,500 600
1,000 400
500 200
0 0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

19. US farmers & renewable energy:
policy recommendations
• US farmers and their representatives should advocate
for state renewable energy policies (specifically FITs or
long-term contracts for renewable energy)
• US agriculture lobbies should support a comprehensive
national climate and energy strategy.
• Rural communities should develop strong stakeholder
networks.
• The US should use a diversity of feedstock/technologies
for on-farm renewable energy generation.

20. Additional suggestions for research and action
in the US
• Raise awareness of farmers and rural communities with an
outreach campaign.
• Increase farmer-to-farmer exchanges.
• Develop a biogas roadmap for the US.
• Create sustainability criteria for biomass in power, heat, and
transport.
• Support research on policy options.
• Evaluate the benefits of renewable energy, distributed
generation and energy independence with quantitative analysis.

21. Thank you…
Neil Veilleux
Meister Consultants Group (MCG)
Neil.Veilleux@mc-group.com