In Germany, an Act, the German Renewable Energy Act (EEG), which was passed in 1990 and revised in August 2004, makes it compulsory for energy operators of power grids to feeding electricity from renewable energies into the grid and to pay fixed prices for it.
The fix price, which is currently 8.8 Euro cents of wind energy, covers the cost of production of 4.5 Eurocents per kilowatts electricity per hour.
The EEG further provides for regular adjustment of provisions and payments in keeping with technological progress and market development with regards to new installation.
More importantly, renewable energy has contributed significantly the reduction of carbon dioxide emission by about 87 million tons hence contributing to saving the world from global warming.
According to a member of the German Wind Mill Association, Isabel Bauer, investors in the windmill sector have received heavy tax incentives.
She said 'private investors enjoy about 150% of tax reduction any time they invest into the wind mill sector over the life of the mill'.
To solve the energy problem, the President of Ghana, Mr. John Kufuor announced recently several steps to mitigate the problem and to increase power production by 1,000 megawatts by the end of this year. Among the measures was the need to focus on exploiting renewable energy sources such as solar, wind, biomass and hydro.
Several experts have said Ghana should go the German way by passing laws to protect and attract investors into the sector, especially wind to produce the 1,000 megawatts.
Source: All Africa
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