Economic policy of renewable energy support in Germany and main results

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Kherson State Agrarian and Enonomic Uninersity

ECONOMIC POLICY OF RENEWABLE ENERGY SUPPORT IN GERMANY AND MAIN RESULTS

Tetiana SKIBINA PhD in Economics,

Associate Professor, Associate Professor of the

Department of Public Management and Administration

Kropyvnytskyi

Abstract

green energy economic support

The development of renewable energy is necessary for the functioning of the state's economy, as it creates conditions for the country's energy security and independence from fossil fuels. Having environmental, energy and social benefits, when using renewable sources during generation, "green energy" can not compete with traditional, as it requires additional investment to run generation facilities. Therefore, it is advisable to implement organizational mechanisms and economic tools to support this industry, which are the basis of economic policy to stimulate the development of energy production from renewable sources.

The European Union's economic policy to support renewable energy has different tools and mechanisms, and therefore different results in achieving the set goals. Germany is one of the leading countries in the generation of energy from renewable sources. Analysis of the use of economic incentives and the results obtained to increase the share of renewable energy in the overall energy balance of Germany, allows us to assess the effectiveness of economic instruments for the development of the renewable energy sector. Identify the main existing obstacles to increasing the competitiveness of renewable energy sources, analyze further development prospects.

When conducting a study of economic policy to support energy production with the use of renewable sources identified levels of influence, namely: international, national, regional, local, individual level. It is determined that economic instruments to support the development of "green" energy should be implemented in accordance with the level of impact. The place of evaluation of the results of economic policy to support the industry has been determined.

Objects of commercial and non-commercial influence are singled out.

It is established that in shaping Germany's economic policy it is necessary to take into account the factors of external and internal environment.

Keywords: economic policy, renewable energy sources, "green energy", economic incentives, state policy of support, economic tools for stimulating development.

Анотація

Тетяна Ігорівна СКІБІНА кандидат економічних наук, доцент, доцент кафедри публічного управління та адміністрування, Херсонський державний аграрно-економічний університет, м. Кропивницький, Україна

ЕКОНОМІЧНА ПОЛІТИКА ПІДТРИМКИ ВІДНОВЛЮВАЛЬНОЇ ЕНЕРГЕТИКИ В НІМЕЧЧИНІ ТА ЇЇ ОСНОВНІ РЕЗУЛЬТАТИ

Розвиток відновлювальної енергетики є важливим для кожної держави, адже створює умови для енергетичної, економічної, соціальної безпеки країни та незалежності від викопного палива. Маючи екологічні, енергетичні та соціальний переваги, при використанні відновлювальних джерел під час генерації, «зелена» енергетика не може конкурувати із традиційною, адже потребує додаткових інвестицій для запуску об'єктів генерації та приєднання їх до електричних мереж. Розвиток відновлювальної енергетики повинен здійснюватись на основі дієвої державної економічної політики підтримки із використанням організаційних механізмів та економічних інструментів стимулювання розвитку відновлювальної енергетики в країні. Отже, доцільним є вивчення існуючого успішного досвіду використання економічних стимулів для виробництва «зеленої енергетики».

Економічна політика підтримки відновлювальної енергетики Європейського Союзу має різні інструменти та механізми, а отже різні результати у досягнені встановлених цілей щодо рівня досягення частки генераціїї енегріїї із використанням відновлювальних джерел. Німеччина є однією із країн-лідерів щодо частки генераціїї «зеленої енергетики». Досвід якої дозволяє вчасно реагувати на Світові викликі в енергетичній та економічній сферах та впроваджувати інноваційні економічні механізми підтримки генераціїї енергіїї із відновлювальних джерел.

Аналіз використання економічної політики стимулювання та основних отриманих результатів, щодо збільшення частки відновлювальної енергетики у загальному енергетичному балансі Німеччини, дозволяє оцінити дієвість економічних інструментів розвитку сектору відновлювальної енергетики, визначити основні існуючі бар'єри на шляху зростання конкурентоспроможності відновлювальних джерел енергії, проаналізувати подальші перспективи розвитку. Детальне дослідження існуючих економічних механізмів та інструментів стимулювання виробництва відновлювальної енергії дозволить впровадити успішний досвід Німеччини в економічній політиці інших країн.

Ключові слова: економічна політика, відновлювані джерела енергії, «зелена енергетика», економічне стимулювання, державна політика підтримки, економічні інструменти стимулювання розвитку.

Formulation of the problem

In modern conditions, when dependence on fossil fuels poses a threat to independence and the ability to independently make political decisions for each country, energy using renewable sources becomes especially relevant. After all, every country has a significant potential for the use of renewable energy sources in its economic activity.

Given that currently renewable energy cannot compete in market conditions with traditional energy, the economic policy of supporting "green" energy requires additional research. After all, it is an effective economic policy that creates the conditions for the formation and systematization of further steps regarding the improvement of state regulation mechanisms for stimulating the development of renewable energy and promotes the attraction of additional investments in this area.

Analysis of recent research and publications

The current state and current trends in the development of renewable energy are reviewed in the works of many domestic scientists. Authors Kurbatov T. O., Sotnyk I. M., Kudrya S. O. have a number of works dedicated to the study of organizational and economic mechanisms for stimulating the development of renewable energy [1], [2], [3].

In the scientific works of Shishkina I.O. and A. K. Shidlovsky, considerable attention was paid to the economic, social and environmental benefits of using renewable energy sources at the macroeconomic and microeconomic levels [4], [5].

Among the foreign studies, the issue of renewable energy support policy is highlighted in the works of R. Haas, K. Panzer, G. Resch, M. Ragwitz, G. Rys, and A. Held [6].

In their works, Z. Abdmule, R. Alammari considered examples of the results of successful experience in the application of various economic instruments in the countries of the European Union [7].

However, taking into account the constant changes in legislation and the establishment of new strategic goals, the economic policy of supporting renewable energy requires additional research.

The main goals of the article

To investigate the existing economic policy of Germany regarding the support of renewable energy and the main results of its implementation.

The main research material

The use of renewable energy in Germany took place in the last century, as part of the sustainable development of society, and had a political nature of concern for the natural environment. The main obstacle to abandoning the use of fossil fuels and energy production based on nuclear power plants and thermal power plants was the rather expensive cost of producing "green" energy [8]. Therefore, renewable energy in Germany needed additional support in the form of economic policy. The result of which was the rapid development of "green" energy.

Thus, at the beginning of 2021, the percentage of renewable energy use in Germany is 45% [9]. Since 2017, Germany has increased the percentage of use of renewable energy sources by 29.5% [15].

Germany ranks 6th among EU countries at the beginning of2021 in the use of renewable energy sources (Fig. 1).

The percentage of renewable energy use in Germany is 7% higher than the average for the countries of the European Union (Fig. 1). This confirms Germany's successful position on the gradual reduction of fossil fuel use.By the end of 2022, Germany plans to abandon nuclear energy, the share of which in the country's total energy balance is 11% (Fig. 1), and switch to renewable energy sources [9].

Fig 1 The structure of the use of sources for the generation of 1 KW/h. of electric energy of the countries of the European Union at the beginning of 2021 (%) [9]

Renewable energy in Germany is mainly based on wind energy. Thus, Germany has a sufficiently large installed capacity of wind energy (59 GW in 2018 - the third place in the world [14]). In the total energy balance of the country at the beginning of 2021, wind energy occupies 31%. Solar and biomass energy is also used, which is 11% and 10%, respectively [11].

It is worth noting that Germany's economic policy for stimulating the development of renewable energy is based on the main economic instruments of stimulation, which include the following:

1. The net metering system is an economic tool based on the policy of payments for used electrical energy with consumers. This tool involves the installation of two-way counters. Consumers who own generation facilities using renewable energy sources or "vehicle-to-grid" have the opportunity to take into account the electrical energy supplied in the reverse direction in mutual calculations with the electricity supply organization [1].

2. Feed-in tariffs are an economic tool that creates conditions for the formation of a competitive price for the purchase of electric energy generated using renewable sources and makes it possible to increase the investment attractiveness of the industry.

The operation of the above-mentioned economic instrument involves the following: guaranteed connection to the electric network, provision of a long-term contract for the purchase of the entire amount of electric energy produced to the electric power generation facility. In Germany, there is a fixed rate of preferential tariff, under which the conditions for the investor remain unchanged during the term of the contract. This rate does not take into account inflationary fluctuations, the increase in the cost of electricity, etc. [2].

In order to increase the investment attractiveness of energy generation projects using renewable sources in Germany, a fixed period of validity of the preferential tariff applies. For newly built facilities, the tariff is valid for the next 20 years of operation.

3. Mandatory quota for the consumption of electricity generated using renewable energy sources (quota obligations with tradable green certificates). This economic tool is based on the principles of a market economy and allows taking into account the ratio of supply and demand for energy produced using renewable sources [13].

The country's government sets quotas for the purchase of electricity generated using renewable energy sources. Energy supply organizations or consumers, on whom the Government has placed such an obligation, buy "green" energy at a commercial price. The functioning of this system is carried out through the introduction of "green" certificates, which allow to cover additional costs in the production of energy using renewable sources. The price of a "green" certificate is not fixed and allows taking into account the market price of electricity, the inflation rate, investment costs for the implementation of the generation facility, etc. In Germany, an auction system has been in place since 2014 for solar power plants and since 2017 for wind power plants.

Germany also has additional economic instruments to stimulate the development of energy using renewable energy sources, among which we can mention: the introduction of tenders for the construction of facilities using "green" energy, investment grants, preferential taxation, other financial bonuses and subsidies.

The economic policy to support the development of renewable energy in Germany is carried out by the following groups:

- research centers that study the consequences of the implementation of political decisions at their first stage, with forecasting and adjustment of state programs and legislative projects. In Germany, such a center is the Institute of Economic Research;

- contract research organizations financed by government organizations for the purpose of conducting research on the implementation of projects supporting renewable energy, as well as disseminating the results of the obtained research in society;

- centers for supporting the development of renewable energy, which are distinguished by their inclination to certain interests and the promotion of their ideas. Such centers spread the use of renewable energy sources among society by conducting informational and explanatory work.

The implementation of Germany's economic policy is carried out at the international level (by ratifying international agreements and setting goals), at the state level, at the regional level, and at the local level (by implementing the economic policy of supporting grants, investment projects, allocating subsidies, creating support centers for the development of renewable energy, etc.) (Fig. 2).

Fig. 2 Structural and logical diagram of the economic policy of supporting renewable energy in Germany [1], [2], [10], [12]

It is worth noting that the objects of the economic policy supporting renewable energy in Germany can be distinguished by their commercial component as commercial and noncommercial. Depending on the main purpose of the object's activity, it is possible to adjust the main tools of influence when determining economic policy.

Objects of commercial influence include large enterprises, small and medium-sized enterprises, and private entrepreneurs. The purpose of applying economic influence tools for this group is to create favorable investment conditions.

For objects of non-commercial influence, which include society, household and individual, in addition to economic tools, it is possible to use moral and ethical, motivational tools that allow to increase social responsibility in German society while supporting "green" energy. An example of the use of such tools is the labeling of products made from the use of renewable energy sources, the holding of promotions, the posting of information in public access regarding the popularization of "green" energy, etc.

An obligatory element of the implementation of the economic policy to support renewable energy in Germany is its analysis for compliance with the defined goals and adjustment, which occurs both at each stage of policy implementation and when obtaining general results (Fig. 2).

However, despite significant results regarding the objectives of the implementation of the economic policy to support renewable energy, there are certain barriers and shortcomings. To which the following can be attributed: the need to create more effective economic tools to support the development of renewable energy at the regional and local levels, the need to create strategic planning, insufficient funding for research on the implementation of evaluation of the results of the implementation of the economic policy to support renewable energy, the creation of tools to support cooperation between the levels of economic implementation policies, creating conditions for increasing the investment attractiveness of construction projects, a number of technical and organizational problems associated with the connection of electricity generation facilities using renewable sources to electric and heat networks, and a complex bureaucratic procedure for putting facilities into operation for physical persons.

Conclusions

The conducted analysis allows us to draw conclusions about the relevance of the implementation of economic policy to support renewable energy. The use of an effective economic policy at all levels of its implementation creates conditions for the rapid development of renewable energy in Germany. At the current stage, only a consistent economic policy of support will allow maintaining the given pace of construction of renewable energy facilities, which will be able to guarantee economic, environmental and social benefits in the long term for Germany.

References

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