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Dear partisan Röttgen,
the German economy seriously suffered under the financial crisis. Heaps of taxes were applied for cushioning its consequences. Numerous companies still make use of short-time work. On the other hand, there is a branch which is booming - the solar branch.
A Branch, which can show economical success and which contributes the German pioneering task in regards to renewable energies. This technological lead is essentially significant for our independence in order that we will not depend on the energy supply of other states in future.
However, this pivotal branch seems to be a thorn in some people's flesh. They are trying convulsively downgrading the previous successes and denigrating all achievements. I would like to present the practical truth describing one of the largest projects of our company history - the Tauberlandpark. <read more>
The Tauberlandpark, a planned solar park near Wertheim (district Tauberbischofsheim in Germany) could become the largest solar park in Europe supporting approximately 20.000 households with environment-friendly solar current for the next 25 years.
Fortunately the project Tauberlandpark did not obtain any resistance from the population. After first discussions in May 2009, all actions needed were introduced, as for example legally required limit values including modifications of development plans as well as the corresponding hearings of the application. Result: There were no votes against this project, but rather constructional proposals for optimizing the environmental safety.
All responsible persons in city halls, the district office and other affected agencies as well as my employees and numerous other participants, engaged the fast moving forward of this project. Furthermore all decisions of the local council turned out concordantly for the project. On the 7th of January 2010 we were able to celebrate the ground breaking.
It goes without saying that such intentions are only realizable with investors who are willing to contribute assets. First they wanted clear forecasts and calculations of profitability, which is generally understandable. In contrast to wind forecasts, sun hours are relatively easy to prognosticate. We were also able to calculate technical data as efficiency of plant components and much more. We are able to maintain having the technical side and also the natural consequences under control.
In contrast politics is absolutely incalculable. All calculations, which configure the basis of negotiations and contracts with investors, will probably be maculation in near future. For this reason the whole project is staggering. A solar park requires approximately one year developing time - excluding construction time. If we do not have any corporate planning security, we are not able to realize these kind of projects.
Isn't the government's function to take care of stability, especially in economically difficult times? Shouldn't the government give planning security to companies? While other branches are supported by subventions of billion Euros, the government jeopardizes everything, which was invested in this branch with hectic actionism. By reducing the remuneration for feeding, expense of taxes is not saved, but tax revenue is avoided.
Everyone knows that the Renewable Energy Law was implemented for enabling the launch of a future technology to the market. As a matter of course we are against permanent subventions as partially prevalent in carbon and atom industry. We therefore do not defend ourselves against verification of given market situations and adjustment of remuneration for feeding. Actually there is no adjustment at the moment, but a waggly track, which destroys all corporate planning.
Our company is engaged in the photovoltaic sector for four years. Today the company has 50 employees. Our company never received any subvention. We do not receive credits from banks nor from suppliers. If we buy goods, we have to afford high down payments or even prepayments. This phenomenon is very distinctive in the PV branch.
Despite of an extremely sagging first quarter in 2009, we did not apply for short-time work and did not dismiss employees. Everything we have achieved in the past relies to the courage of few persons and high engagement of my employees.
While the entire economic system has to fight against recessions of five percent, we had to cope with double-digit up- and downturns within the last years. The branch learned to take this changing dynamics, which other branches may not master. The market challanges are definitely mastered by the companies.
Companies do not bear the unnecessary uncertainty caused by politics. They eliminate all planning possibility by changing frame conditions within a short period of time. Since the current governing coalition took up duties, we suffer under permanent unstableness. It seams that the current governing coalition does not miss any opportunity producing simulated fluctuations to the solar business. Some people even ask me from time to time whether it could be the intention of the government to create a "bridge technology" by constraining the photovoltaic's right to exist.
The current proceeding of the government hardly kills every authorized project - not only solar parks: We stopped our planned new building due to unclear perspectives. We decided to delay the engagement of 30 new employees in our head office in Balingen. Furthermore this discussion avoids the engagement of 100 to 150 construction workers in Wertheim for the next twelve months.
At the moment we are not able to foresee the consequences for our 200 million project "Tauberlandpark" caused by the government's announcement changing the Renewable Energy Law. Since first rumors appeared in October 2009, an unbearable incertitude complicates negotiations with investors. Besides, since last week there is hardly complete palsy.
The Tauberlandpark is close to our hearts. We will do everything in our power to complete the first construction steps. We don't know what will happen afterwards. In the meantime the government will perhaps make decisions which enable negotiations with investors for planning a period of at least twelve months.
In fact the stock exchange prices fell rapidly since the government's announcement. This shows that the consequences of the planned modifications are seriously, not only for solar companies which are extremely affected by stock market collapses.
According to press reports, the German Department of Environment maintains that solar parks would be similar to sealed natural ground, even if they know that this is not true. Areas are not sealed at all - modules require an area of less than 35 percent of the total surface. Ecologically valuable range land is generated between the module ranks and under them. This even enables storage of higher rainfall quantity than before. For this reason there is an ecological gain in addition to the ecologically friendly current production.
As a matter of course we support the perspective using roof and conversional areas first, before making use of arable land. Therefore we are anxious using conversional areas for the solar production for more than one year. We would develop solar projects for each landfill if it's economically reasonable and in some degree representable. Unfortunately we didn't have success realizing photovoltaic projects on fallowed land like landfills in our district. Many districts possess areas, but don't want to allocate them or they will be available in some years.
We were able to collect experience in the sector of landfills and may demonstrate excellent references. We even realized a photovoltaic plant on a former military area and unutilized airfields. Negotiations with corresponding communes are extremely difficult. Recently we received a refusal for a landfill in the newly-formed German states even if we were able to show appropriate investors.
We searched for other areas. Due to agricultural overproductions, farmers are not able to achieve sufficient revenues by cultivating aliment or depend on massive subventions. Therefore owners of agricultural land look for reasonable alternatives. The agricultural use of the Tauberlandpark area will be paused temporarily. After the agreed period for producing solar current on this land, it will be available for agriculture again. By the way, this conversion saves agricultural subventions to tax-payers. The solar park is planned for the complete deconstruction without problems.
This method of law modification is bitter and is threatening the existence, not only of the Tauberlandpark, but also of manufacturers of the entire branch. The current announcing of the government leads to high pressured and hard working hours in winter under unhuman and dangerous conditions on frosted German roofs. As soon as the weather is better and convenient working would be possible, people are unemployed. Today modules are not available before the 31st March 2010. Even connectors are already sold out.
The photovoltaic branch has to act as a buffer again and again. Utility companies for example justify their increase in prices due to supposed costs of the photovoltaic feed-in tariff. In point of fact the entire costs of the Renewable Energy Law Tariff is only a fraction of the current prices, namely 1,1 Cent. Furthermore they often disregard that solar current is generated in peak load periods and is essentially more valuable than base loads for utility companies.
Furthermore many costs of conventional energy sources are hidden when they are compared to renewable energy. Solar current does not raise external costs in comparison to carbon or nuclear power. These costs are finally covered by tax payers. The refurbishment of the uranium open-cast mining area Wismut guzzled 6,6 billion Euro. The final storage of nuclear waste is not clear - this means that these intermediate storages have to be excavated some day.
Unfortunately I, as businessman and member of the CDU, have to determine that the Christian-Liberal Governing Coalition achieved what no other coalition did: thwarting innovative companies and laming a complete branch.
I assume that you wanted to bring about this situation unsighted. I am at your disposal for constructional conversations.
Kind regards,
Sincerely,
Bernd Bodmer Managing Director relatio company group
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