Germany Could Be Europe’s Renewable Energy Hub, Says Study

Share

In spite of the proposed 16 percent to 17 percent cut on its solar tariffs,

Germany remains an attractive market for renewable energy,

retaining an edge over other European countries because of its more mature industry.

Global consulting firm McKinsey & Company confirmed in a study that Europe can source 100 percent of its electricity from renewable energy by 2050, and that Germany is well-positioned to tap into this opportunity.

The study, which was published by the European Climate Foundation, looks into whether the European Union can lower its greenhouse gas emissions by 80 percent by 2050 based on 1990 levels.

The McKinsey report cites Germany’s advantages are an experienced workforce, a dense network of manufacturers, suppliers and researchers, and proximity to booming markets in Eastern and Western Europe.

Germany accounted for more than half of the world’s solar market last year, with electricity sourced from renewables posting an increase of 16.1 percent. The country’s new photovoltaic installations in 2009 also exceeded 3.8 gigawatts, according to the report.

The study also states that the country’s rooftop market will continue to demand high-quality solar photovoltaic products.

The growth of the German solar market does not spell saturation, says the study, especially since only 2 percent of rooftops suitable for solar modules are used at present.

Germany’s landmark Renewable Energies Act, which was passed ten years ago, continues to drive the growth of the German green business market.

The study believes the imminent cut in the country’s solar feed-in tariff, though widely criticized by the industry, could help fostering further growth of the solar rooftop market.

Representatives of Germany Trade and Invest presented the findings at the Photon Expo which is being held in Stuttgart, Germany from April 27 to 29. The German agency provides support to companies that plan to establish businesses in Germany.