German Renewables Industry: A lack of energy?
Tuesday, den 31. March 2009
An article by David Scrimgeour, CEO of DS Consulting and Foreign Direct Investment Expert for Germany, UK and USA
Renewable energy is a remarkable success story in Germany. Current estimates suggest that at least 250,000 are employed in this industry. Half of the world’s market for solar energy is in Germany and the majority of the global wind turbine manufacturers and component suppliers are German SMEs. In the biogas sector there are already 4000 anaerobic digestion plants using organic material as feedstock.
Over the last few years a new industrial sector has emerged with specialist engineering consultancies, plant manufacturers as well as service and maintenance providers. Some of these companies have become relatively large, often able to raise substantial capital by going public. The industry has engaged in cross-border investment, both within and beyond Europe, and this has enabled German companies to profit from international trends in alternative energy deployment and to become the world’s technology leaders in renewable energy.
However, although all this sounds positive, there are obstacles to be overcome and also risks to be managed. The main issues are: lack of capital, limited resources and “thinking big”. And the main danger is …inaction. If German companies do not get their act together quickly then foreign investors will acquire these technology assets thereby cutting out the entrepreneurs from the opportunity to generate wealth in global markets. In fact there are signs that this is already happening. (more…)

