A few years back, the big energy corporations from Germany started to make big investments in eco-power. Companys who were known for two resources, coal and uranium, started to invest a lot of money into projects like wind power and other renewable energy sources. Those corporations were E.on, RWE, EnBW and Vattenfall. The manager of Vattenfall, Oliver Weinmann, justified the investments with the big potential of renewable energies. “There you can earn a lot of money.”
One Example for those investments have been the “offshore power plants”. One wind turbine cost ten million euros in 2007. A whole offshore wind farm more than one billion euros. Of course, no medium-sized company can raise so much money, as Weinmann confirms: “Such sums can only be raised by big corporations.”
The plan behind those investments is to diversify the ressources and to be more independant from commodity imports, says Weinmann. But there might be more behind it. The manager of the federation of renewable energies (BEE), Milan Nitzschke, is accusing the big electricity contractors to fight the medium-sized companies in the eco-power sector. To him, the big energy corporations are investing in eco-power on pure image reasons and to prevent others to compete with eco-power against their own conventional power plants.
A few years later it’s more and more clear, that those assumptions were not wrong. And there is more to it. Energy Corporations are driving forward wind power only where it doesn’t harm them. They advertise with big offshore power plants, but actually slow down the eco-power development.
Energy economist Olav Hohmeyer is afraid that nuclear power operators are controlling wind power sites with the possibility to prevent or delay further build up of renewable energy production. Many wind farms have been planned and approved, but they never have been realized. The Reason for that: Money. The return of capital from the wind farms is not high enough or not as high as from nuclear plants or coal-fired power plants. And because of the statutory feed priority of wind power over nuclear power, too much wind power in the power grid could mean the loss of a lot of money. Those reasons increase the incentive of to slow down the wind power projects.
Meanwhile energy corporations such as RWE and E.on are the biggest investors in eco-power. Besides the offshore wind farms, they invest in inland wind farms, biomass-facilities, hydroelectric plants, solar power and others. Corporations like E.on are now internationally active. From 2007 to 2011, E.on invested eight billion euro in renewable electricity. To get realized, E.on wants an yield of more than 7% to invest in an offshore wind farm.
Peter Ahmels, eco-power expert from the german environment help, is questioning the commitment’s seriousness and sustainabilty of the big energy corporations. He thinks they just want to secure market shares. Furthermore Ahmels thinks, that in reality the energy corporations are fighting to keep old structures and nuclear power. The innovative developments in the eco-power sector are accordingly not from the big corporations, but from independant power providers.
Underlining the big profit oppurtunities in the renewable energy market are the investments from foreign industries. For example Ikea. They have recently bought six wind farms and want to become independent form fossil energy. Already ten percent of their energy need is covered by wind farms. Another example is the Google company. Their technology chief, Urs Hölzle, even admitted, that the main purpose of those investments is to “earn a return on capital like an investment bank.” In addition to that, Google hopes to reduce the current costs in the longterm.
All in all investments in renewable energy has become a big business. The german stock market already introduced an Eco-Dax. Counted back only three years, the eco-dax has quintupled. While the Dax has “only” doubled in the same time. Experts don’t think that is the end, they think it is a long-term mega trend. Backed by EU-guidelines, this market has to grow a lot until 2020, since the share of renewable energy on the whole energy market has to grow from the 6% share, that it has now, to 20% in 2020.
To sum it up, the market of renewable energy has become a big business. The big energy corporations have done enough to control the eco-power-market and to get big profits out of it. Directly and even indirectly with blocking or slowing down developments. At the same their image is only getting better, because it is so popular to be “green”.