- Associated Press - Sunday, January 15, 2012

FELDHEIM, GERMANY This tiny village of 37 gray homes and farm buildings clustered along the main road in a wind-swept corner of rural eastern Germany seems an unlikely place for a revolution.

Yet environmentalists, experts and politicians from El Salvador to Japan to South Africa have flocked here in the past year to learn how Feldheim, a village of just 145 people, is already putting into practice Germany’s vision of a future powered entirely by renewable energy.

Chancellor Angela Merkel’s government passed legislation in June setting the country on course to generate a third of its power through renewable sources - such as wind, solar, geothermal and bioenergy - within a decade, reaching 80 percent by 2050, while creating jobs, increasing energy security and reducing harmful emissions.

The goals are among the world’s most ambitious, and expensive, and other industrialized nations from the U.S. to Japan are watching to see whether transforming into a nation powered by renewable energy sources can really work.

Germany can’t afford to fail, because the whole world is looking at the German model and asking, can Germany move us to new business models, new infrastructure?,” said Jeremy Rifkin, a U.S. economist who has advised the European Union and Mrs. Merkel.

In June, the nation passed the 20 percent mark for drawing electric power from a mix of wind, solar and other renewables.

That compares with about 9 percent in the United States or Japan - both of which rely heavily on hydroelectric power, an energy source that has long been used.

Expanding renewables depends on the right mix of resources, as well as government subsidies and investment incentive - and a willingness by taxpayers to shoulder a share of the burden.

Germans currently pay a 3.5 euro cent per kilowatt-hour tax, roughly $205 per year for a typical family of four, to subsidize the production and consumption of energy from renewable sources and support research and investment.

That allows for homeowners who install solar panels on their rooftops, or communities like Feldheim that build their own biogas plants, to be paid above-market prices for selling back to the electrical grid, to ensure that their investment at least breaks even.

Critics, like the Washington-based Institute for Energy Research, maintain such tariffs put an unfair burden of expanding renewables squarely on the taxpayer. At the same time, to make renewable energy work on the larger scale, Germany will have to pour billions into infrastructure, including updating its grid.

Key to success of the transformation will be getting the nation’s powerful industries on board, to drive innovation in technology and create jobs. According to the Environment Ministry, overall investment in renewable energy production equipment more than doubled to more than $38 billion in 2011. Solid growth in the sector is projected through the next decade.

Some 370,000 people in Germany now have jobs in the renewable sector, more than double the number in 2004.

Feldheim has zero unemployment. The jobless rate is about 30 percent in other villages in the economically depressed state of Brandenburg.

Most residents work in the plant that produces biogas - fuel made by the breakdown of organic material such as plants or food waste - or maintain the wind and solar parks that provide the village’s electricity.

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