Trans-Atlantic Comparison:
   Renewable Energy Opportunities
  for American and German Farmers




Neil Veilleux
Meister C...
Beyond Biofuels: Renewable Energy
            Opportunities for US Farmers




Available at: http://boell.org/web/139-641....
How German Farmers Harvest the Fields, the
            Wind & the Sun…




         Photo Source: www.germanyandafrica.dip...
Current state of renewable energy in Germany
                            Share of renewable energy sources in total final ...
Development of renewable electricity in Germany

                                             Development of electricity g...
Feed-in tariff (FIT) rates (biogas example)

• Guaranteed long-term contracts and interconnection for electricity generato...
German farms and wind & solar PV

• German farmers install 200-250
  MW of PV each year

• Influence of “
               M...
German farms and biogas

                          1,800
                                                                 ...
German farms and biogas

• 5,000 installations by 2010

• Small (<190 kW) and large
  facilities

• Power 3.8 million
  ho...
Driver #1: Comprehensive national climate
strategy and energy policy

Targets for 2020:
• 40% less GHG emissions (270 Mio....
Driver #2: Pro-active German Farm Federation
and renewable energy industry
• Deutscher Bauernverband (DBV) is lobbying for...
Driver #3: Social catalysts in Germany

• Machinery cooperatives (>250) work as rural
  cooperatives and advise farmers, a...
Driver #4: Rural communities striving for 100%
renewable energy

• Regional economic development: farmers, planners,
  cra...
US Farmers and Renewable Energy…




 Photo Source: www.bettergeneration.com
The role of renewable energy in the nation’
                                          s
energy supply, 2008




   Source:...
US farms and wind & solar PV

• In 2009, farmers & local landowners owned 638 MW
  (1.8%) of total installed wind capacity...
US farms and biomass

• Biomass makes up 4% of total US energy
  consumption (2008)
  – At 6%, bioenergy could generate $2...
US farms and biogas
• Despite environmental and economic advantages, US farms lack
  the policy support to build vibrant b...
US farmers & renewable energy:
policy recommendations

• US farmers and their representatives should advocate
  for state ...
Additional suggestions for research and action
in the US
  • Raise awareness of farmers and rural communities with an
    ...
Thank you…


           Neil Veilleux
Meister Consultants Group (MCG)
  Neil.Veilleux@mc-group.com
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Renewable Energy Opportunities for American and German Farmers

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Renewable Energy Opportunities for American and German Farmers

  1. 1. Trans-Atlantic Comparison: Renewable Energy Opportunities for American and German Farmers Neil Veilleux Meister Consultants Group (MCG)
  2. 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. 3. How German Farmers Harvest the Fields, the Wind & the Sun… Photo Source: www.germanyandafrica.diplo.de
  4. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 14. US Farmers and Renewable Energy… Photo Source: www.bettergeneration.com
  15. 15. The role of renewable energy in the nation’ s energy supply, 2008 Source: U.S. EIA.
  16. 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. 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. 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. 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. 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. 21. Thank you… Neil Veilleux Meister Consultants Group (MCG) Neil.Veilleux@mc-group.com

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