Sunday, July 27, 2008

A Box of Sunshine

Today has been one of the best days of my entire German summer. I woke up to find that a care package from my family had arrived in the mail. The contents included four books (from Jackson's very own Nomad Bookhouse), a glad-ware full of delicious oatmeal-raisin cookies that my sister Andrea baked, and a very tasteful navy blue sweater-vest and birthday card, complements of my Grandma and Grandpa Gaydos.

Not to diminish any of the other care package contents, but I was especially excited about the new reading material. I grossly underestimated my need for reading material during a summer of independence (read: isolation). While my abundance in free-time has allowed for a lot of introspection, I can only handle so much. Here are the books that came in the care package:

Three Cups of Tea by Greg Mortenson and David Oliver
The Ten Year Nap by Meg Wolitzer
The Exception To The Rulers by Amy Goodman (with David Goodman)
Africa on Six Wheels by Betty Levitov

I asked for the first two specifically, and the last two were complete surprises. While I want to save enough reading for my return travel, I hope to post some type of book review for Three Cups of Tea and The Ten Year Nap.

Whenever my family would do any type of traveling, I always remember stopping at my Grandma Berkemeier's house prior to departure and receiving a family care package. These packages would always be filled with treats and goodies, and were always called "Sunshine Boxes," as they always provided a little bit more sunshine for our travels. Today was definitely a day filled with sunshine. After nearly three weeks of overcast, cool, and rainy days, the weather here in Vechta finally came around. For the first time this summer, I was able to go swimming at a nearby lake and do some summer beach-reading.

Thursday, July 24, 2008

Look to Berlin

In case anyone missed Senator Obama's speech at the Victory column in Berlin, you can now watch it in its entirety right here.





Feel free to fill the comments with your thoughts on the speech.

Wednesday, July 23, 2008

Barack in Berlin


I have been awaiting this day with anticipation since reading Roger Cohen's Op-Ed "Obama's Message to Europe" in the July 7th New York Times. In fact, during the following lunch hour, I made sure to tell all of my coworkers about Obama's planned speech in Berlin. At one point, I managed discussed the event with my boss while on a field trip car ride. We covered all of the talking points, from the controversy surrounding the proposed venue of the Brandenburg Gate (the site of the famous JFK "Ich bin ein Berliner" speech), the main differences between Obama and McCain as candidates, and how renewable energy fit into the respective platforms.

When we came to the topic of foreign relations, I mentioned the American concern in Obama's youth compared to McCain's military background. My boss seemed confused on this subject, so I tried to explain how the two candidates have different approaches to foreign policy; Obama favors soft diplomatic efforts while McCain favors Military action, and that given our involvement in Afghanistan and Iraq, the issue was among the most important. But after this explanation, my boss still wore the appearance of confusion, and for a moment, I grew self conscious in my less than sufficient German skills. As if reading my momentary self doubt, my boss spoke up, saying "But Bush didn't have military or foreign policy experience either, right?"

I paused to think, I mean, he did manage to serve with the National Guard while others were in Vietnam. After deliberating, I offered the simple answer of, "No, not really, not like McCain." At this my boss took his eyes of the road, and replied with the Gem of all European-American discourse, "And you voted for Bush twice!"

This was not the first case that I encountered this assertion in Germany. Between my roommates, coworkers, and loose friends, Bush was not given much slack. He is viewed here as a poor diplomat, a terrible communicator, and ignorant on foreign policy. As you can imagine, when the trump card of "You elected Bush twice!" is played, little more than a shrug can be returned, and with that the conversation often ends.

Despite the dislike for Bush, every German that I have met holds a decent opinion of the US, especially when Barack Obama's name comes up. While the Germans don't know much about Obama, they respond well to his un-Bush characteristics and strengths. Tomorrow, Germany and all of Europe will have the opportunity to get to know Obama better.

***
Unfortunately, I will not be able to attend Obama's speech in Berlin, but don't worry. My lack of attendance is no detterant whatsoever from preparing a great post on the event. I have managed to convince my friend Chris, a TREE intern working in Berlin, to write a guest column tomorrow and hopefully share some cool pictures, as he will be taking the day off from work to attend the speech.
In preparation for tomorrow's speech and First-Ever "One Sun, One Tree" Guest Column, I have decided to give a little bullet-point introduction to Obama's foreign policy tour.

Preview for tomorrow: What to expect
  • Over the last seven days, Obama has reinforced the intent of his travels abroad. He is on a fact-finding mission in Iraq and Afghanistan, and a US representative in Europe. Obama and his staff have repeatedly stressed that they are not abroad to broker deals of any nature, saying, "The United States of America has one president at a time — that president is George W. Bush. Senator Obama will not be engaged in any way, shape or form policy-making.”
  • That being said, Obama has the clear motivation to establish himself as a competent politician on foreign policy matters. So far he has done well. In Iraq, Afghanistan, Jordan, Palestine, and Israel, Obama has met with the political and military leaders of all of the involved parties, including Gen. David Petraeus, Iraqi Prime Minister Nuri Kamal al-Maliki, King Abdullah of Jordan, Israeli Defense Minister Ehud Barack, and Palestinian President Mahmoud Abaas.
  • In Berlin, we can expect Obama to address the importance of the European-American alliance. Nostalgic references to the Triumph of the West in the Cold War are widely speculated in the hopes of connecting past accomplishments with present and future challenges, like the coalition effort in Afghanistan and the need for greater cooperation in the entire Middle East.
  • A showcase of some of Senator Obama's greatest strengths: oration that rivals the European beloved JFK in content and delivery, and the just-as-important listening skills that complete the great communicator package.
Return tomorrow for a first hand account and reflection of Senator Barack Obama's speech in Berlin!

Wednesday, July 16, 2008

Energy Policy: Why German's EEG Works

In the the case of energy reform, there is plenty of room for improvement from a legislative angle. Since I am more familiar with Germany's Erneuerbar Energie Gesetz (EEG), or Renewable Energy Law, I am going to continue to examine it as a reference to energy policy. This will also help tie up loose ends from my previous post on the bill as a whole.

What makes good policy good? I don't think that our leaders need to be the heroic writers like Thomas Jefferson or Thomas Paine were to produce effect legislation. I will be arguing that it is the little things that count when writing effective legislation.

Let's look at the EEG.

Taken at face value, Germany’s EEG encourages investment in renewable energy sources. Individuals who purchase, say a solar panel, know that they will earn a guaranteed rate of 42 €cents per kWh for a certain year when they sell to the utility (and remember, the utility must pay, at least, the guaranteed price). In a sentence, the EEG creates a market for renewable technologies. However, this in itself does not give the EEG its strength, as there are several other factors included in the legislation that do just as much, if not more at making the EEG successful.

1.) The EEG provided Feed-in Tariffs of scale.
A solar panel owner that produces up to 30 kW/h can earn more money/kW than a corporate solar farm that produces 5 MW/h. This promotes decentralized energy production. The benefits of decentralized energy production are invaluable and something very new to modern society. The biggest benefit is that it turns individuals into energy producers. It has a very Web 2.0 effect, in that suddenly anyone has the opportunity to transform from a consumer to a producer. The effect, in essence, is a more democratic production of energy.

Maybe this sounds like empty rhetoric and neglects the idea of efficiency from a centralized production method, but there is a phenomena that takes place when ordinary citizens start becoming energy producers. They start consuming less.

2.) The EEG is short and to the point.
The English edition that I found online was only 27 pages. 27 pages! For some reference, our Energy Independence and Security Act of 2007 (H.R.6) was 310 pages in length. While this sounds simple, and perhaps even reckless because of the risk of incomplete policy, the fact that the EEG was short and sweet enabled ordinary citizens to become beneficiaries of the bill and prospective renewable energy producers.

Together with the first point, the EEG secures a unique market for renewable energy. When average citizens are engaged by legislation and provided with legislation that is easy to read, they are more likely to take advantage of the policy and thus more likely to make the policy successful.

These measures enabled the first pioneers of wind energy to be German farmers, and some of the first pioneers of solar energy to be German homeowners.

3.) The EEG planned for the long term.
That is, the bill specified that all renewable energy providers would have a guaranteed buyer (the utility) and a guaranteed price for a 20 year period. This creates a number of benefits.

First, it decreases the risk for initial customers by providing them a 20 year time table to profit from their investment. Customers avoid the risk that comes with purchasing a new technology. Just look at who bought the apple iphone on the first day or the price for DVD players when they were first introduced, and you'll start to get the picture.

A second benefit of the twenty year plan favors renewable energy start-ups. With a 20 year guaranteed market, it suddenly makes sense for entrepreneurs to take the next step without the added risk. This will enable them to develop their industry when it wouldn't have previously been able to do so.

The third benefit occurs after the 20 year time period. Even when the bill expires, there will be a well established industry for renewable technologies, which creates a competitive energy market. By thinking in the long term, legislators can have a very positive impact on the domestic economy.

***
These are important policy writing lessons, and they should be applied to every bill that wants to be successful.
Address the problem in the policy: if the problem is consumption, address consumption on the most familiar level (individual consumption).
Keep it simple, stupid: We don't want legislation to resembles a Rube Goldberg sense of logic. If the bill is written well and kept to the point, it will be easier to advertise.
Make the most out of the bill: Think long term and reap the benefits from doing so.

Friday, July 11, 2008

Proactive Energy Policy: Germany's EEG

Whether Sen. John McCain or Sen. Barack Obama becomes our nations next president, the issue of environmental policy and domestic energy production is going to play a dynamic role in our nation’s future. The question that these two candidates will have to answer during their campaigns is, “How will your energy policy create a better future for Americans and the environment?”

So far, McCain has suggested adhering to free market principles with clean energy except for government subsidies for nuclear power and clean coal. He has also promised a $300 Million incentive to the producer of a high achieving car battery. Obama, on the other hand, has promised money. In his proposed budget, Obama is allotting $150 billion over 10 years to clean energy initiatives compared with McCain’s $2 billion annual promise to clean coal production (only number available on McCain’s Lexington Project site). Maybe the promise of free market principles or a lot of money can solve our energy crisis, but then again, maybe they won’t. For this sake, I am promoting specific energy policies that act proactively instead of reactively. My model is Germany’s EEG, Erneuerbar Energie Gesetz, or Renewable Energy Law.

The EEG began with roots in the 1990s where wind power alone was benefited, but the law really developed during its actual birth in 2000 to include almost every source of renewable energy. The policy is based on the principle of Feed-In Tariffs, which work by guaranteeing the sale of renewable energy by its producer to the utility. The catch is that the RE producer is guaranteed to sell the energy at above market rates determined by the law, which it then distributes evenly across its customers. In the end an average family pays an additional 2-3 euro on the monthly bill. This way, the tariffs don't punish the utility, and the higher cost is distributed among all of the consumers based on their consumption. These tariffs regress in amount in fixed increments that are specified by the EEG and specific to the type of renewable energy technology used. Therefore, more affordable renewable energy sources see a lower tariff than a more expensive RE technology.

Examples of these Feed-In Tariffs:

Both on- and offshore Wind Turbines are guaranteed a feed in tarif of 8.96 €cents for every kWh produced in 2002, which regresses to 8.83 €cents in 2003, and then 8.70 €cents in 2004. Similarly, Biomass (up to 500 kW) earn a feed in tariff of 10.13, 10.03, and 9.93 €cents/kWh for 2002 to 2004 respectively. From Geothermal to Hydropower to Landfill gas, each Feed-in Tariff is in the 6 to 10 €cents/kWh with one exception; Solar PV. For Solar PV panels (5 MW), the Feed-in Tariff is 48.09 €cents for '02, 45.68 €cents for '03, and 43.40 €cents for'04.

*It is important to note that the EEG takes measures to benefit smaller energy producers with high respective FiTs. So while a Solar PV producer of 5 MW earns a tariff of 43.40 €cents/kWh in 2004, a homeowner with a PV panel capable of producing 30kW/h can earn a tariff of 57.4 €cents/kWh. The difference is substantial enough to promote small ventures and private investment in renewable energy.

**Also, The EEG is guarantees these FiTs for 20 years, thus providing the security that entrepreneurs need to set up shop in a new industry. This long term legislation is part of the reason why Germany in experiencing surprising economic growth despite the global credit crunch. The first quarter of 2008 was the best in the past 12 years, expanding their economy by 1.5 % for the quarter (compared to the 0.6% GDP first quarter growth of the US).

The tremendous difference in the FiT for Solar PV is mostly because of the expensive price of a Photo-Voltaic panel. A fraction of it might just be to provide incentive to create the strongest solar industry, which brings me to my next point.

While the EEG provides a proactive policy for the benefit of all renewable energies, it doesn't mean that similar Feed-in Tariff legislation needs to be conducted in this same manner. While it is ideal to promote a number of RE technologies, this is impartiality is expected on a national level. In order to expect the same here in the US, this would mean waiting around for our federal government to pass a FiT policy. I am advocating that states, specifically Michigan and Ohio, beat the federal government to the punch. We should be viewing a proactive policy like the Feed-in Tariff as an impetus for economic growth.

Here is my proposal: Because of the hurting state of Michigan and Ohio's economies, the state legislators should be picky with which types of RE technology benefit from a FiT policy. For example, Ohio could choose to only promote a FiT for wind turbines, and guarantee is for 15 or 20 years, long enough to convince start-ups to choose Ohio. Why should Ohio choose wind and not solar or geo thermal? First of all, Ohio isn't exactly the sunniest state in the US, and I don't know of any existing infrastructure that could really take off given a friendly market. On the other hand, Ohio, specifically southwestern Ohio, more specifically Dayton, is home to one of the nation's best aerospace infrastructures in Wright Patterson Air Force Base. We are also home to what is possibly the nation's preeminent composite industry, a composite valley.

Michigan could probably also benefit from a wind focused FiT policy, but just in other ways. While we lack the aerospace and composite infrastructure that southwestern Ohio has, we have lake effect winds on the west coast of the state.

Okay, I'm no economic developer or legislator, so I'm sure that there are holes in my idea. Commenters, have at it. I want to know what everyone thinks. Bring your best criticisms, especially if you are an economist or legislator. Will FiTs work on a state level?

Sunday, July 6, 2008

Traveling Beyond Detroit: The Bicycle

We are all familiar with the argument; save gas, ride a bike. While many have decided to take the challenge and go by bike, the fact remains that we as a society are deeply attached to the personal automobile. This begs the question, "Why?"

As an avid rider myself, I find it hard to believe that such a large majority doesn't enjoy biking for the sake of biking. Rather, I think the determining factor is convenience. I realize that bikes often are less convenient than cars, but this is a convenience that is becoming ever more difficult to pay for. Also, the convenience of biking does not have to remain static. Imagine how much the convenience of driving a car everyday to work would diminish if the roads were constructed of nothing more than speed-impairing gravel, parking was sensible parking was nearly impossible to come by, and our traffic laws were designed with something other than cars in mind. The difference would be incredible. If much of convenience depends on external structures, than it is entirely possible to improve the convenience of something like biking as a form of transportation.

Since I'm living in Germany right now, I'll share some practices here that makes bike transportation more convenient.

Bike Lanes
In every German city that I have ever visited, the bike lane system is extensive. Each system stems from the heart of the city and branches out radially to connect different neighborhoods. Depending on the size of the city, the branched bike paths are connected in whichever manner makes the most sense. The bike paths are designed for mixed use, and are clearly divided between a pedestrian friendly half and a bicycle friendly half. If a biker is approaching a group of pedestrians, the biker just rings a bell, or squeaks the brakes to let the pedestrians know to move on their side on the path.

At the very heart of the city, it isn't uncommon for certain streets to be pedestrian only zones. These are usually the streets with outdoor markets. On any road without a bike path, the road is shared, and the those on bike ride without fear of cars (but they also follow rules).

Bike Storage
Just as cars need parking lots or garages, bikes need bike racks or lockers in order to increase the convenience. Plus, it's just good for organization and security. Cities won't have to worry about an entire workforce worth of bikes being locked to flagpoles, fences, rails, and trees. Riders won't have to fret about locking their bikes in a safe area.

Depending on the city design, a centralized bike locker can make sense. A centralized locker requires that a large number of jobs be concentrated in a relatively small area, so downtown business districts are usually a safe bet. In cities with less concentrated employment, centralized lockers can still make sense providing that public transportation or pedestrian traffic is accommodated to connect the dots. In some cases, smaller decentralized lockers will just make more sense, especially if there isn't already established convenient public transportation.

***
Bike Storage Case Study: Freiburg, Baden-Württemberg, Germany

While I was in Freiburg earlier this summer for the TREE seminar, I took a renewable energy tour of the city. The tour covered solar and biogas, but we also spent time on transportation. The tour started at the RE-tour agency's office, located in a mixed use bike locker facility. It was part bike locker, part café, part bike shop, and part city of Frieburg renewable energy tour agency office space. On a side note, those are solar panels on the sattelite dish looking thing. On the front of the building hung a meter which showed how much energy was being generated and consumed by the building. This building was definitely a centralized bike locker, and the location definitelz impacted this. One needed only to step off the Straßenbahn (Tram) at the main stop, and walk 20 meters. Plus, the main stop was conveniently located on a bridge spanning Frieburg's Hauptbahnhof (main train station). This transportation trifecta allowed those living in neighborhoods outside the city to commute by bike (which, if only a few miles away is faster than the tram, because of the fluidity of the bike path and Tram stops), park their bikes at the locker, and then catch a quick Tram ride to their office building or a Train for a daytrip/weekend getaway. Prepare yourself for pictures.

The effect is that of a parking garage. This is the basement/ground floor, and these are all citzen bikes that get dropped off in the morning and picked up at the end of the workday.

This is looking inward toward the center of the building.


This picture makes it look like you just remember your number come pick-up.

The fun doesn't end here though, because as we made our way back upstairs an onward on the tour, our guide drew our attention once more to the exterior of the building. In this case, we were directed to study the café balcony. Go ahead, study...

Nothing yet? That's okay. The next picture is my attempt to get a closer shot.

Answer: The balcony railings are actually water pipes that take advantage of the sun's heat to warm the water before running through the boiler line to heat the café or hot water line in the kitchen and bathrooms. Be impressed, it's okay.

***
So, what can we learn from Freiburg? The culture is obviously different, and so is the city design. Some naysayers might end the conversation there, saying that such infrastructure just wouldn't fly in the States, certainly not small Jackson, Michigan or suburban Dayton, Ohio. And they might be right, because we don't have the same city design, equivalent public transit, or bike culture. The thing is, we don't need to be the same as Freiburg. We can meet our own needs and still be progressive and ambitious enough to open the door to better bike culture and public transit.

Please use the comments as a forum to discuss this topic. What does everyone think? How can we build upon Freiburg's ideas? What is feasible? Do we need to consider other factors?

Saturday, July 5, 2008

Post for Independence

The Fourth of July has arrived, and while the corn is in fact knee-high here in Vechta, there are many things that are out of place. So in an attempt to secure what I can for myself as an expatriated citizen on this most patriotic of holidays, I'm going to post about independence, specifically energy independence.

The skyrocketing price of oil is forcing us to reconsider everything about our personal energy consumption and the consumption of our nation. The cold truth of our oil consumption is that it is self inflicted. We are the consumers and free citizens of a democracy. I know that this may sound a naive, but we have done little since the Oil Crisis of 1973 to ensure a less dependent future for ourselves. That is more than thirty years of complacency. Yikes!

So here is my 4th of July resolution: to post more frequently about energy specific issues. I don't expect that my ideas will be bread winners, or even that they will be intirely new, but hopefully a little bit of a dialoge can result that will yield some fruit. Consider this a formal invitation to contribute in the comments for those among my readership well-versed in energy law. You know who you are.

Thursday, July 3, 2008

The Game (of the Century)

Wednesday was finally here, and although my co-workers were reluctant to voice the concerns for the Turkish – Germany game, their silence only made the anxiety more obvious. It was useless to ignore the significance of a game where the emotional component is best measured along side Greek tragedies and classic mythology. On one side was Turkey, the remnant of the Ottoman Empire, the Muslim presence in the historically Christian Europe, the emerging nation waiting on the invitation into the EU, Germany’s largest minority of merchant class and fresh immigrants. On the other side was the Fatherland, the economic power, the EU key holder, the Man.

I tried to fish for thoughts at the lunch table, throwing out statements like “I’m pretty nervous about the game tonight. Turkey just seems to always find a way to win.” If I was lucky enough to get a relevant response, it most likely take the form of “Yeah, but they don’t play well—they just play hard. We are much more disciplined.” Despite the few bites, I never reeled one in. When my colleagues started clearing out an hour early, I followed suit. Although it isn’t unusual to leave work early on a game day, this was a bit more than I had noticed during the game against Croatia.That night as I made my way down to the Stadtmitte, literally city-middle, one of my flatmate’s friend let it loose. “There are a lot of Turks here in Germany, you know? We are a little bit scared tonight. We might just get beaten up.” If the game would have started then and there, I might have become a little nervous myself. However, as were passing through a heavily Turkish neighborhood at the time, my nerves were halted by success wishes of “Viel Erfolg!” and even playful negotiations like “If Turkey wins tonight, we get free Döners right?” (Döners are incredibly popular kebab sandwiches, and the shops are almost always Turk-owned). On top of this encouragement, my friend proceded to lighten the mood, glorifying Turkey's underdog appeal. He reminded me that 8 of Turkey's team were either injured or ineligible for the game because of red/double yellow cards in the previous game. As if that wasn't enough, there was wide speculation that the team's third-string goalie might end up playing striker!

I had never seen so many Germans pay so much attention to a game. Of course there was still the typical merriment at this game, but for once the fans seemed more focused on cheering than on the party atmosphere. Every cheer that the Turkish fans started was quickly followed by a counter cheer, and so it went until Turkey scored the first goal. Germany was silent. The game continued to stay close and when Turkey tied the game 2-2 in the second half, I was instructed a native to stop taking pictures of their fans celebrating. With less than ten minutes of regulation play left in the game, both sides seemed to be thinking the same thing, that Turkey somehow manages to win in the end.
In the last minute of regulation play, the flood gates opened in response to Phillip Lahm’s goal. Despite the Turks last minute efforts, the fate was sealed. Germany prevailed 3-2, and Turkey was going to be watching the Finale at home. The celebration continued for hours afterward, but I had to leave an hour into the celebratory dancing in the streets. Unlike the students, I had work the next morning.