Thứ Tư, 11 tháng 9, 2013

A Plea for Caution From Russia

MOSCOW — RECENT events surrounding Syria have prompted me to speak directly to the American people and their political leaders. It is important to do so at a time of insufficient communication between our societies.
Relations between us have passed through different stages. We stood against each other during the cold war. But we were also allies once, and defeated the Nazis together. The universal international organization — the United Nations — was then established to prevent such devastation from ever happening again.
The United Nations’ founders understood that decisions affecting war and peace should happen only by consensus, and with America’s consent the veto by Security Council permanent members was enshrined in the United Nations Charter. The profound wisdom of this has underpinned the stability of international relations for decades.
No one wants the United Nations to suffer the fate of the League of Nations, which collapsed because it lacked real leverage. This is possible if influential countries bypass the United Nations and take military action without Security Council authorization.
The potential strike by the United States against Syria, despite strong opposition from many countries and major political and religious leaders, including the pope, will result in more innocent victims and escalation, potentially spreading the conflict far beyond Syria’s borders. A strike would increase violence and unleash a new wave of terrorism. It could undermine multilateral efforts to resolve the Iranian nuclear problem and the Israeli-Palestinian conflict and further destabilize the Middle East and North Africa. It could throw the entire system of international law and order out of balance.
Syria is not witnessing a battle for democracy, but an armed conflict between government and opposition in a multireligious country. There are few champions of democracy inSyria. But there are more than enough Qaeda fighters and extremists of all stripes battling the government. The United States State Department has designated Al Nusra Front and the Islamic State of Iraq and the Levant, fighting with the opposition, as terrorist organizations. This internal conflict, fueled by foreign weapons supplied to the opposition, is one of the bloodiest in the world.
Mercenaries from Arab countries fighting there, and hundreds of militants from Western countries and even Russia, are an issue of our deep concern. Might they not return to our countries with experience acquired in Syria? After all, after fighting in Libya, extremists moved on to Mali. This threatens us all.
From the outset, Russia has advocated peaceful dialogue enabling Syrians to develop a compromise plan for their own future. We are not protecting the Syrian government, but international law. We need to use the United Nations Security Council and believe that preserving law and order in today’s complex and turbulent world is one of the few ways to keep international relations from sliding into chaos. The law is still the law, and we must follow it whether we like it or not. Under current international law, force is permitted only in self-defense or by the decision of the Security Council. Anything else is unacceptable under the United Nations Charter and would constitute an act of aggression.
No one doubts that poison gas was used in Syria. But there is every reason to believe it was used not by the Syrian Army, but by opposition forces, to provoke intervention by their powerful foreign patrons, who would be siding with the fundamentalists. Reports that militants are preparing another attack — this time against Israel — cannot be ignored.
It is alarming that military intervention in internal conflicts in foreign countries has become commonplace for the United States. Is it in America’s long-term interest? I doubt it. Millions around the world increasingly see America not as a model of democracy but as relying solely on brute force, cobbling coalitions together under the slogan “you’re either with us or against us.”
But force has proved ineffective and pointless. Afghanistan is reeling, and no one can say what will happen after international forces withdraw. Libya is divided into tribes and clans. In Iraq the civil war continues, with dozens killed each day. In the United States, many draw an analogy between Iraq and Syria, and ask why their government would want to repeat recent mistakes.
No matter how targeted the strikes or how sophisticated the weapons, civilian casualties are inevitable, including the elderly and children, whom the strikes are meant to protect.
The world reacts by asking: if you cannot count on international law, then you must find other ways to ensure your security. Thus a growing number of countries seek to acquire weapons of mass destruction. This is logical: if you have the bomb, no one will touch you. We are left with talk of the need to strengthen nonproliferation, when in reality this is being eroded.
We must stop using the language of force and return to the path of civilized diplomatic and political settlement.
A new opportunity to avoid military action has emerged in the past few days. The United States, Russia and all members of the international community must take advantage of the Syrian government’s willingness to place its chemical arsenal under international control for subsequent destruction. Judging by the statements of President Obama, the United States sees this as an alternative to military action.
I welcome the president’s interest in continuing the dialogue with Russia on Syria. We must work together to keep this hope alive, as we agreed to at the Group of 8 meeting in Lough Erne in Northern Ireland in June, and steer the discussion back toward negotiations.
If we can avoid force against Syria, this will improve the atmosphere in international affairs and strengthen mutual trust. It will be our shared success and open the door to cooperation on other critical issues.
My working and personal relationship with President Obama is marked by growing trust. I appreciate this. I carefully studied his address to the nation on Tuesday. And I would rather disagree with a case he made on American exceptionalism, stating that the United States’ policy is “what makes America different. It’s what makes us exceptional.” It is extremely dangerous to encourage people to see themselves as exceptional, whatever the motivation. There are big countries and small countries, rich and poor, those with long democratic traditions and those still finding their way to democracy. Their policies differ, too. We are all different, but when we ask for the Lord’s blessings, we must not forget that God created us equal.

Vladimir V. Putin is the president of Russia.

Germany's Energy Poverty: How Electricity Became a Luxury Good

Germany's agressive and reckless expansion of wind and solar power has come with a hefty pricetag for consumers, and the costs often fall disproportionately on the poor. Government advisors are calling for a completely new start.


If you want to do something big, you have to start small. That's something German Environment Minister Peter Altmaier knows all too well. The politician, a member of the center-right Christian Democratic Union (CDU), has put together a manual of practical tips on how everyone can make small, everyday contributions to the shift away from nuclear power and toward green energy. The so-called Energiewende, or energy revolution, is Chancellor Angela Merkel's project of the century.
ANZEIGE
"Join in and start today," Altmaier writes in the introduction. He then turns to such everyday activities as baking and cooking. "Avoid preheating and utilize residual heat," Altmaier advises. TV viewers can also save a lot of electricity, albeit at the expense of picture quality. "For instance, you can reduce brightness and contrast," his booklet suggests.
Altmaier and others are on a mission to help people save money on their electricity bills, because they're about to receive some bad news. The government predicts that the renewable energy surcharge added to every consumer's electricity bill will increase from 5.3 cents today to between 6.2 and 6.5 cents per kilowatt hour -- a 20-percent price hike.
German consumers already pay the highest electricity prices in Europe. But because the government is failing to get the costs of its new energypolicy under control, rising prices are already on the horizon. Electricity is becoming a luxury good in Germany, and one of the country's most important future-oriented projects is acutely at risk.
After the Fukushima nuclear accident in Japan two and a half years ago, Merkel quickly decided to begin phasing out nuclear power and lead the country into the age of wind and solar. But now many Germans are realizing the coalition government of Merkel's CDU and the pro-business Free Democrats (FDP) is unable to cope with this shift. Of course, this doesn't mean that the public has any more confidence in a potential alliance of the center-left Social Democrats (SPD) and the Greens. The political world is wedged between the green-energy lobby, masquerading as saviors of the world, and the established electric utilities, with their dire warnings of chaotic supply problems and job losses.
Even well-informed citizens can no longer keep track of all the additional costs being imposed on them. According to government sources, the surcharge to finance the power grids will increase by 0.2 to 0.4 cents per kilowatt hour next year. On top of that, consumers pay a host of taxes, surcharges and fees that would make any consumer's head spin.
Former Environment Minister Jürgen Tritten of the Green Party once claimed that switching Germany to renewable energy wasn't going to cost citizens more than one scoop of ice cream. Today his successor Altmaier admits consumers are paying enough to "eat everything on the ice cream menu."
Paying Big for Nothing
For society as a whole, the costs have reached levels comparable only to the euro-zone bailouts. This year, German consumers will be forced to pay €20 billion ($26 billion) for electricity from solar, wind and biogas plants -- electricity with a market price of just over €3 billion. Even the figure of €20 billion is disputable if you include all the unintended costs and collateral damage associated with the project. Solar panels and wind turbines at times generate huge amounts of electricity, and sometimes none at all. Depending on the weather and the time of day, the country can face absurd states of energy surplus or deficit.
If there is too much power coming from the grid, wind turbines have to be shut down. Nevertheless, consumers are still paying for the "phantom electricity" the turbines are theoretically generating. Occasionally, Germany has to pay fees to dump already subsidized green energy, creating what experts refer to as "negative electricity prices."
On the other hand, when the wind suddenly stops blowing, and in particular during the cold season, supply becomes scarce. That's when heavy oil and coal power plants have to be fired up to close the gap, which is why Germany's energy producers in 2012 actually released more climate-damaging carbon dioxide into the atmosphere than in 2011.
If there is still an electricity shortfall, energy-hungry plants like the ArcelorMittal steel mill in Hamburg are sometimes asked to shut down production to protect the grid. Of course, ordinary electricity customers are then expected to pay for the compensation these businesses are entitled to for lost profits.
The government has high hopes for the expansion of offshore wind farms. But the construction sites are in a state of chaos: Wind turbines off the North Sea island of Borkum are currently rotating without being connected to the grid. The connection cable will probably not be finished until next year. In the meantime, the turbines are being run with diesel fuel to prevent them from rusting.
In the current election campaign, the parties are blaming each other for the disaster. Meanwhile, the federal government would prefer to avoid discussing its energy policies entirely. "It exposes us to criticism," says a government spokesman. "There are undeniably major problems," admits a cabinet member.
But this week, the issue is forcing its way onto the agenda. On Thursday, a government-sanctioned commission plans to submit a special report called "Competition in Times of the Energy Transition." The report is sharply critical, arguing that Germany's current system actually rewards the most inefficient plants, doesn't contribute to protecting the climate, jeopardizes the energy supply and puts the poor at a disadvantage.
The experts propose changing the system to resemble a model long successful in Sweden. If implemented, it would eliminate the more than 4,000 different subsidies currently in place. Instead of bureaucrats setting green energy prices, they would be allowed to develop indepedently on a separate market. The report's authors believe the Swedish model would lead to faster and cheaper implementation of renewable energy, and that the system would also become what it is not today: socially just.
Trouble Paying the Bills
When Stefan Becker of the Berlin office of the Catholic charity Caritas makes a house call, he likes to bring along a few energy-saving bulbs. Many residents still use old light bulbs, which consume a lot of electricity but are cheaper than newer bulbs. "People here have to decide between spending money on an expensive energy-saving bulb or a hot meal," says Becker. In other words, saving energy is well and good -- but only if people can afford it.
A family Becker recently visited is a case in point. They live in a dark, ground-floor apartment in Berlin's Neukölln neighborhood. On a sunny summer day, the two children inside had to keep the lights on -- which drives up the electricity bill, even if the family is using energy-saving bulbs.
Becker wants to prevent his clients from having their electricity shut off for not paying their bill. After sending out a few warning notices, the power company typically sends someone to the apartment to shut off the power -- leaving the customers with no functioning refrigerator, stove or bathroom fan. Unless they happen to have a camping stove, they can't even boil water for a cup of tea. It's like living in the Stone Age.
Once the power has been shut off, it's difficult to have it switched on again. Customers have to negotiate a payment plan, and are also charged a reconnection fee of up to €100. "When people get their late payment notices in the spring, our phones start ringing," says Becker.
In the near future, an average three-person household will spend about €90 a month for electricity. That's about twice as much as in 2000.

Two-thirds of the price increase is due to new government fees, surcharges and taxes. But despite those price hikes, government pensions and social welfare payments have not been adjusted. As a result, every new fee becomes a threat to low-income consumers.

Part 2: The Regressive Energy Tax

Consumer advocates and aid organizations say the breaking point has already been reached. Today, more than 300,000 households a year are seeing their power shut off because of unpaid bills. Caritas and other charity groups call it "energy poverty."
Lawmakers, on the other hand, have largely ignored the phenomenon. In the concluding legislative period, the government and opposition argued passionately over a €5 increase in payments to the long-term unemployed. But no one paid much attention to the fact that those welfare recipients would subsequently see the extra €5 wiped out by higher electricity bills.
It is only gradually becoming apparent how the renewable energy subsidies redistribute money from the poor to the more affluent, like when someone living in small rental apartment subsidizes a homeowner's roof-mounted solar panels through his electricity bill. The SPD, which sees itself as the party of the working class, long ignored this regressive aspect of the system. The Greens, the party of higher earners, continue to do so.
Germany's renewable energy policy is particularly unfair with respect to the economy. About 2,300 businesses have managed to largely exempt themselves from the green energy surcharge by claiming, often with little justification, that they face tough international competition. Companies with less lobbying power, however, are required to pay the surcharge.
In this respect, at least, all of Germany's political parties are pushing for change. They want to close loopholes and more widely distribute the costs of clean energy subsidies. But even this improvement would translate into a relatively minor financial benefit to citizens. According to the SPD plan, an average household would see only about 70 cents a month in savings -- slightly less than under the plan Environment Minister Altmaier proposed a few months ago.
In the end, what actually drives up costs would remain unaffected: the haphazard expansion of wind and solar energy.
The Offshore Trap
Far out in the North Sea, about 70 kilometers (43 miles) from the island of Norderney, there is a large, bright yellow steel box. It's as wide as the Brandenburg Gate and taller than the Federal Chancellery building. It's essentially a giant electrical socket, which collects the electricity from the nearby offshore wind farms and transmits it to the mainland via a thick cable. The system, along with the cable, cost grid operator Tennet about €1 billion and is designed to last 20 years, although there is no data to show that this will actually be the case.
According to an official at Tennet, the company has no experience with such systems. It knows only one thing: There are always obstacles in the way.
In the case of Germany's offshore projects, those obstacles currently include weather and porpoises. In heavy seas, work on the wind farm is suspended. The same applies when porpoises and their young are spotted, because of the potential damage to their sensitive hearing by construction noise. As a result, there are still many spots where metal stumps protrude from the water instead of wind turbines.
Still, the government is pressing ahead with wind expansion, and the plans are breathtaking. By 2020, offshore wind turbines are expected to generate up to 10 gigawatts of electricity, theoretically as much as eight nuclear power plants. To attract investors, the government has created the best possible subsidy conditions, so that operators will be paid 19 cents per kilowatt-hour of offshore electricity, or about 50 percent more than from land-based wind farms. The government has also assumed the liability risk for the wind farm operators. If anything goes wrong, taxpayers will bear the cost.
Hidden Costs
As fascinating as the plan is for engineers, economically it's a potential disaster. Experts believe that because of the more challenging conditions, the power offshore wind turbines generate will be consistently two to three times as expensive as on land. Although the wind blows more consistently at sea, this comes far from offsetting the higher costs.
The less visible costs are also high. There is little demand for electricity in the thinly populated coastal region. New high-voltage power lines will be needed to transport the energy to industrial centers in western and southern Germany. The government already estimates the costs of expanding the grid at €20 billion, which doesn't include the additional ocean cables for offshore wind power.
If the government sticks to its plans, the price of electricity will literally explode in the coming years. According to a current study for the federal government, electricity will cost up to 40 cents a kilowatt-hour by 2020, a 40-percent increase over today's prices.
Worse yet, it remains completely unclear whether the offshore facilities are even needed. The Federal Environment Agency believes it's enough to install modern turbines in the best terrestrial wind sites. It would also be cheaper.
But even if that were the case, the environment minister still believes consumers can expect to see rising prices. Experts say the miniscule impact wind energy has had on current prices is due to an uncooperative Mother Nature: 2013 has been an unusually windless year so far.
The Storage Conundrum
The Cossebaude reservoir is Dresden's largest and most popular open-air pool. On summer days, up to 8,000 sunbathers lounge on its sandy beach or cool off in the 10,000-square-meter (2.5-acre) lake.
Cossebaude is also part of the enormous Niederwartha pumped storage hydroelectric plant. At night or on weekends, when there is plenty of available power, lake water is pumped electrically through big pipes into a second reservoir 140 meters above the main reservoir. At noon, when electricity is scarce, the water is released from the higher-elevation reservoir, spinning giant turbines as it descends. The system generates electricity when the cost is high and consumes it when the cost is low. Plant operator Vattenfall makes its profit on the difference. When the plant was connected to the grid in November 1929, it was considered the technology of the future.
Now the power plant, along with the recreational lake attached to it, could soon be gone. The company plans to shut down the energy storage facility within the next two years. This is bad news for Dresden's swimmers, but it's especially detrimental to Germany's energy transition, which depends on backup power plants like the Niederwartha facility.
When the sun isn't shining and the wind isn't blowing, gas-fired power plants and pumped storage stations are supposed to fill the gap. A key formula behind the Energiewende is that the more green energy is produced, the more reserves are needed to avert bottlenecks.
This is true in theory, but not in practice. On the contrary, an ironic result of the green energy expansion is that many of the reliable pumped storage stations could be forced out of the market. There are roughly 20 of these power plants in Germany, with Vattenfall being the most important operator. The plants were very profitable for utilities for decades, but now the business has become highly unreliable. Dresden is a case in point.
When it's sunny and people are most likely to head to the lake, solar power is abundant and electricity prices drop. This means the pumped storage station earns less money, so the power plant is shut off. In 2009, for example, the turbines in Niederwartha were in operation for 2,784 hours. Last year, Vattenfall ran the facility for only 277 hours. "Price peaks that last only a few hours aren't enough to utilize the plant to full capacity," says Gunnar Groebler, head of Vattenfall's German hydro division.
No Incentives for Storage
Not surprisingly, the company invests very little in its pumped storage plants today. In Niederwartha, the buildings are filled with the musty smell of earlier floods, the paint is peeling from the walls and the reservoir leaks.
It would cost Vattenfall €150 million to modernize the plant. But company executives are hesitant, fearing they won't recoup that money with future profits. Vattenfall has also hit the brakes elsewhere, like in Hamburg suburb of Geesthacht. Plans to increase the capacity of the existing reservoir there have been put on hold. Instead, the plant is used only as a backup.
Meanwhile, competitors RWE and EnBW have also shelved plans to build a large pumped storage power station in the southern Black Forest. Trianel, an association of about 100 municipal utilities, withdrew from a similar project at Rursee Lake in the western Eifel Mountains in late June.
All this gives credence to the claim that Germany's energy reform is its own worst enemy. Despite the erratic expansion of wind and solar projects, the backup power capacity those projects require is lacking. One study found that Germany's expansion of renewable energy will require additional storage capacity for 20 to 30 billion kilowatt-hours by 2050. So far the storage capacity has grown by little more than 70 million kilowatt-hours. And hardly anyone is interested in maintaining the existing storage facilities.
At least that isn't the case in Dresden, where a grassroots movement is working to keep the old pumped storage facility open -- partly because of the popular swimming lake.

Part 3: Incentives for Pollution

More and more wind turbines are turning in Germany, and solar panels are basking in the sun, yet the amount of pollutants and greenhouse gases emitted by smokestacks increased last year. This dramatic turn of events is especially evident in small town of Grosskotzenburg, just east of Frankfurt.
Germany's largest energy provider, Düsseldorf-based E.on AG, has been operating a large coal-fired power plant in Grosskotzenburg for many years. The oldest of the five units at the Staudinger plant was built in 1965 and operates at a ridiculous 32-percent efficiency level. Even at E.on, the Staudinger plant is now seen as "completely unacceptable, both economically and environmentally."
State-of-the-art gas-fired power plants, like the one in the Bavarian town of Irsching, operate at almost double the efficiency levels of coal plants, or about 60 percent. They are also more flexible and emit far less carbon dioxide. This may explain why E.on officials were not particularly upset when the operating license for the oldest of Staudinger's five units expired on Jan. 1 of this year.
"To be on the safe side, we informed the relevant authorities several times that we are shutting down the unit," says E.on CEO Johannes Teyssen. When regulators did not object, the company began in May to dismantle key components of the power plant and transfer employees to other sites. E.on had planned to complete the work by the end of the year and remove what was left of the ancient plant.
But the situation suddenly changed on June 30, when E.on received a letter from the grid operator associated with the plant, Tennet, and the regulatory agency. The unit, the letter read, was needed to maintain grid stability, and E.on was to reestablish the coal plant's operational readiness without delay.
This is one of the most curious developments in the story of German energy reform. The country's most heavily polluting plants are now also its most profitable: old and irrelevant brown coal power stations. Many of the plants are now running at full capacity.
This leaves a dirty stain on Germany's environmental statistics. While the amount of electricity from renewable energy rose by 10.2 percent in 2012, the first year of the new energy policy, the amount of electricity generated in hard coal and brown coal plants also increased by 5 percent each. As a result, German CO2 emissions actually increased by 2 percent in 2012. Environment Minister Altmaier was clearly upset, saying: "This development cannot become a tendency."
But experts expect Altmaier will be humiliated once again at the end of the year, if he's still in office. A study released last week by the Federal Network Agency shows that energy generated with brown coal will remain virtually stabile, at 148 terawatt-hours, until 2022. It reached the depressing conclusion that brown coal's competitive position will be "hardly diminished by an increasing share of renewable energy in the mix."
Beyond Sweden
Sometimes the best ideas are borne of necessity. At least that's how Gustav Ebenå sees it when he looks back on the turn of the millennium, when Sweden entered the age of green energy. His country was suffering from the effects of a painful economic crisis at the time. "One thing was clear," the expert with Sweden's energy agency recalls. "Renewable forms of energy had to be developed as cost-effectively as possible."
Sweden developed a system based on government-mandated quotas for green energy and a market for certificates. "In a sense, our model at the time was the opposite of the German subsidy scheme," says Ebenå, who lived in Germany for many years and is well informed about Germany's energy reforms.
The Swedish model has prevailed among the competing concepts. Under the model, a kilowatt-hour of clean power costs only 10 percent more than conventional electricity. "This means that our consumers pay only a fraction of what Germans are spending to enter the renewable energy era," Ebenå says.
Still, Sweden is moving forward briskly with its expansion of green energy. The country already derives about 45 percent of its electricity from hydroelectric power plants. As a result of the subsidy system, biomass and wind turbines have contributed about 10 percent to the energy mix in recent years. Norway implemented the Swedish system last year. But can the model be applied to Germany?
The members of the commission appointed by the German government believe it can, and are due to submit a detailed plan to Economy Minister Philipp Rösler on Thursday. The plan was developed by economist Justus Haucap and legal expert Jürgen Kühling, and is supported by the economic think tank RWI and the German Academy of Science and Engineering (Acatech).
The experts propose that the government impose a green energy quota on energy providers, and gradually increase this quota in accordance with their targets for renewable energy production. The cutoff date would be Jan. 1, 2015. In the ensuing 12 months, 27.5 percent of electricity would have to come from renewable energy, followed by 29 percent in 2016 and, finally, 35 percent in 2020.
But it would be left up to the individual energy companies and municipal utilities to choose their respective sources of clean energy. The commission believes energy providers should decide how to spend their money on wind, solar or biomass. The municipal utilities would seek the lowest possible price for their clean electricity. This would encourage competition between offshore and terrestrial wind power, as well as between solar and biomass, and prices would fall, benefiting customers.
Keeping the System Honest
In Sweden, the system ensures that the electric utilities' investments automatically flow into the technology they see as the most cost-effective. This doesn't always have to be the cheapest technology at a given time. But like any normal company, the Swedish utilities have an interest in maximizing their return on investment. This is different in Germany, where the most inefficient technology at a given time is the most heavily subsidized, based on the bizarre logic that it has to be brought into the market over a particularly lengthy period of time.
To prevent energy providers from cheating the quota model, Sweden requires them to submit a certain number of green energy certificates. Each certificate represents one megawatt-hour of clean electricity. Those that cannot prove they have met their quotas are slapped with a hefty fine.
The rest is left up to supply and demand, based on the usual rules of the market economy. When the amount of green energy being generated is low, there are fewer certificates on the market and their price increases. This, in turn, gives investors an incentive to build additional wind turbines or solar arrays. They can also invest their money in storage systems, which make energy production more efficient. Or they can invest in technologies that play no role in Germany today but are being studied elsewhere in the world.
For Swedish Energy Minister Anna-Karin Hatt, the greatest benefit of the quota model is that it contains few bureaucratic restrictions. The government defines the objective, but not the method. In contrast to the German system, the government is not forced to constantly adjust subsidy rates for wind, solar and biomass. "As a result, the energy market doesn't depend on new political decisions every year," says Hatt. "Investors in renewable energy greatly value this predictability."
In heavily forested Sweden, energy providers initially focused on biomass in the form of wood and paper industry waste. They used this material to fuel conventional power plants, which generate electricity and supply long-distance heating to households. But this potential is now largely exhausted, which is why the industry has shifted to building or modernizing wind farms -- mostly those on land, says Ebenå, "because offshore turbines are still very costly."
Election Liabilities Silence Debate
In Germany, a quota model would also likely lead to more wind turbines being built on land. The government's expansion targets for offshore wind power would no longer be feasible -- and with good reason. Due to the challenging environment, the technology is prone to failure, and the cost of construction far away from the coast is very high. To make matters worse, the electricity also has to be transported hundreds of kilometers across the country.
It is clear that the next German government will have to plan a shift in energy policy. But the price of electricity is a toxic issue in the campaign, given the bad prognoses and broken promises. In a government statement in June 2011, Chancellor Merkel had promised to keep prices stable. "The renewable energy surcharge should not exceed current levels," Merkel said in the Bundestag. Economy Minister Rösler claimed there might even be room for energy tax cuts. When prices increased, Rösler and then Environment Minister Norbert Röttgen shifted blame instead of coming up with a solution.
None of the parties has a coherent concept of how to approach the problem after the parliamentary election on Sept. 22. The few current proposals are disturbingly simplistic. Altmaier and the CDU are considering paying for next year's green energy subsidies with borrowed funds, so as to delay the next electricity price increase by a few months.
Gerda Hasselfeldt, a member of the CDU's Bavarian sister party, the Christian Social Union (CSU), favors saddling the next generation with at least some of the costs. Under her proposal, the government-owned KfW development bank would assume some of the costs of solar panels and wind turbines. The amount could then be repaid over the course of the next 40 years.
The proposals being floated by the SPD, the Greens and the FDP amount to reducing the electricity tax or the value-added tax. But that wouldn't solve the structural problems, which would require the sort of radical reform the government commission. The problem is that the next government would have to be willing to tangle with the electricity industry's powerful interest groups.
Until the issue comes up in the next legislative period, Environment Minister Altmaier prefers to send consumers on their way with some money-saving tips: "When I cook, I try to keep the lid on the pot."
BY FRANK DOHMEN, MICHAEL FRÖHLINGSDORF, ALEXANDER NEUBACHER, TOBIAS SCHULZE AND GERALD TRAUFETTER

Germany Could Face Electricity Customer Revolt

Der Spiegel, Germany's leading weekly news magazine, reports this week thatGermany's aggressive renewables program "has come with a hefty price tag for consumers," especially the poor. Though no immediate action is expected before national elections in two weeks, there may be new initiatives soon after, as "government advisors are calling for a completely new start."
The article is notable not only for its length and depth, but also because Der Spiegel is generally characterized as left-liberal in its inclinations and, therefore, would not be expected to be so critical of a program advanced by its very readers—the socialists and Greens who adopted the program more than a decade ago.
But first let's accentuate the positive: The "feed-in tariff" put in place at the end of the 1990s has been a hugely powerful lever in driving development of renewable energy in a country that is itself one of the world's major markets and a top incubator of new technology. The law and its successors established schedules such that anybody installing any of several types of renewable generation can sell the electricity they generate into the national grid at prices guaranteed over time. The premium prices are covered out of a pool funded by an electricity surcharge levied on all German power consumers.
To a remarkable extent, Germans so far have been willing to pay those prices, for the sake of making the country a world leader in environment-friendly power technologies. But today, says Der Spiegel, the prices are beginning to look not just intolerably high and unsustainable, but in some ways unfair and perverse in their effects. The surcharge, already high at 5.3 euro-cents per kilowatt-hour, is slated to rise 20 percent to between 6.2 and 6.5 cents/kWh, according to the government. In large part because of the surcharge, Germany's electricity costs are among the highest in Europe and could soon be among the highest anywhere in the world.
Without a change in course, says the government, costs could rise to 40 cents/kWh by 2020. At present-day prices, the average German family of three pays about 90 euros per month for electricity, the equivalent of about US $135—about twice as much as in the year 2000.
The high rates have been affecting less-advantaged members of society disproportionately, argues Der Spiegel, . "…[R]enewable energy subsidies redistribute money from the poor to the more affluent., as when someone living in a small rental apartment subsidizes a homeowner's roof-mounted solar panels through his electricity bill."
There are other perverse effects. Though authoritative studies suggest that Germany's expansion of renewables will require as much as 30 billion kilowatt-hours of energy storage by 2050, in the short run, wind and solar installations have sometimes led to shutdowns of storage facilities. Der Spiegel provides examples of long-standing pumped hydro installations that may be taken offline because the growing amount of power being generated by solar plants means there is less demand for their output during daytime peaks.
A major steel mill near Hamburg sometimes has to suspend operations because energy from nearby intermittent sources fails to materialize as expected. Meanwhile a major offshore wind farm in the area is behind schedule getting its transmission link to the mainland completed (as reported here).
An additional and predictable development results from Germany's post-Fukushima nuclear phase-out: Old and dirty coal-fired plants like the one at Grosskotzenburg [photo, above] are being used more rather than less, leading for the first time in two decades to an increase in the country's greenhouse gas emissions.
To be sure, Germany's GHG emissions are 25 percent lower than in 1990, in contrast (for example) to those of the United States, which are 10 percent higher. But U.S. emissions have declined in the last five years, whereas Germany's experienced an uptick last year, by 2 percent. "This development cannot become a tendency," Germany's environment minister has said.
Der Spiegel proposes that the solution may be at least in part to adopt what it calls "the Swedish model" as a successor to the feed-in tariff. In Sweden, says the magazine, the government sets greenhouse gas reduction targets for each economic sector but leaves it to the players in each sector to decide how to make the cuts. But whether such a system could work in an economy the scale of Germany's remains to be seen. In the meantime, Germans are left with the environment minister's rather lame, band-aid suggestions: Don't preheat before cooking; keep lids on your stove-top pots; and turn down the brightness and contrast on your televisions.
Photo: Dmitry A. Mottl

Putin Scores on Syria

On Monday, September 9, Russian President Vladimir Putin made a diplomatic move that seemed to catch the entire international community, not just U.S. President Barack Obama and his team, by surprise. He seized the most dramatic moment possible -- the eve of what was to be a fateful vote in the U.S. Congress on Obama’s decision to launch a targeted strike against Syrian leader Bashar al-Assad -- to propose that Syria surrender its chemical weapons to an international commission headed by the United Nations. Assad quickly agreed to the proposal, at least in principle.
By the evening of September 10, after a day full of calls from every imaginable corner to pursue Putin’s plan, Obama seemed to back away from threats of imminent military action. In a live address to the nation, he requested a delay in the congressional vote, announced that Secretary of State John Kerry would meet with the Russians to hash things out, pushed for the United Nations to maintain the diplomatic pressure on Assad, and put another round of the Syrian game in motion. Putin then further pressed his advantage by demanding a promise from Washington not to attack Assad if the Syrian leader surrenders his chemical weapons.
Whether or not the Russian plan succeeds, Putin's team will surely paint it as a diplomatic coup, a show of more finess than the Obama team has been able to muster. For one, Putin was able to capitalize on what appeared to be a gaffe by Kerry at a press conference in the United Kingdom on Monday. In response to a journalist’s question, Kerry had asserted that the only way for Assad to avoid a strike was to turn over his entire chemical arsenal. The U.S. State Department subsequently walked back Kerry’s statement, but it was then that Putin pounced by seconding the disarmament plan. In interviews, Obama suggested he had discussed the contours of the proposal with Putin when the Russian president pulled him aside at the G-20 summit. Other international players have claimed the general idea was theirs. Still others maintain the core concept had been in the diplomatic works for some time.
Whatever the actual facts, it was Putin who claimed paternity first. He was thus able to take credit as the United States and others scrambled to spin the situation in their favor. Despite giving Obama and the United States a “get out of jail free card” at home, most observers agree that, on points, Putin is the real winner of this particular round of the Syrian conflict. Indeed, in helping Obama avoid the probability of a congressional defeat, Putin has even made the U.S. president somewhat beholden to him as the next phase of the Syrian game unfolds. This is a situation that Putin relishes as a former KGB officer whose success in his job often depended on trading on favors behind the scenes. The question now is whether the United States and its allies can out-maneuver Putin to regain the diplomatic advantage. If the history of the Syrian conflict is any guide, that will not be easy. However the conflict is ultimately resolved, it is now seems more likely to be on terms laid out by Moscow than Washington.
ORIGINAL ARTICLE: September 6, 2013

After months of standing firm (and almost alone) against international intervention in Syria, by the end of August, Russian President Vladimir Putin seemed resigned to the prospect of a U.S. strike against Bashar al-Assad’s regime. To be sure, he was not happy about it, but the use of chemical weapons against civilians in a Damascus suburb appeared to have brought the current phase of the Syrian crisis to its inevitable climax. In the face of repeated U.S. and international warnings that a chemical attack was the red line for retribution, coalition strikes on Syria seemed mere days away.
Yet events after the attack unexpectedly worked in Putin’s favor. First came the British parliamentary vote blocking Prime Minister David Cameron’s initiative to join any U.S. military assault. Then came U.S. President Barack Obama’s decision to put the issue to a vote before a reluctant Congress. The French government announced that -- unlike in Mali -- it would not go it alone in Syria. And United Nations Secretary-General Ban Ki-moon stated that the chemical weapons inspection team he had dispatched to Syria would need time to complete its work before determining whether there was sufficient evidence for the UN to approve the use of force.
Now, as Putin hosts the G-20 summit in St. Petersburg, he sees a new opportunity for Russia. Given all parties’ clear reluctance to take assertive action, Putin believes that an attack can be averted, or, at the very least, limited to a unilateral American action. Beyond some French support, and some sideline cheering by the Turks and the Arab League, Obama -- not Putin -- will be out on his own. And Russia will find itself no longer isolated on Syria.
Over the past week, Putin has used a series of carefully staged public appearances and interviews to stoke skepticism about the use of force. He has pushed the idea that the Syrian rebels launched the chemical attack themselves to draw in the United States and regain ground in a civil war that they have been losing. He has engaged in cleverly orchestrated pieces of political theater, including encouraging Russian Duma deputies to reach out to members of the U.S. Congress before they vote. Putin has been judicious in calling for a review of the facts, and pointing to the importance of not doing anything rash. He has also left open the possibility that Russia could play a role in UN action against the Syrian regime -- if the secretary-general obtains irrefutable proof that Assad ordered the use of chemical weapons against his own civilians. Putin has stressed the need for high evidentiary standards to avoid repeating past mistakes, such as sanctioning U.S. intervention in Iraq on the basis of faulty intelligence on WMD.
Graffiti in Moscow, March 3, 2012.
Graffiti in Moscow, March 3, 2012. (Pawel Kopczynski / Courtesy Reuters)
Whether these moves are sincere or not (most likely, not), they resonate with audiences in Russia, and with some outside Russia who have opposed past U.S. military actions. Putin has picked up on all the prevailing arguments against intervention and, by repeating them, staked out a position for himself as a defender of international law and principles. He has presented himself as a savvy leader who recognizes a provocation when he sees one and refuses to rise to the bait. He is poised to declare a moral victory for Russia and to take the credit if Obama backs away from intervention.
In his statements about Obama, moreover, Putin has not insulted the president personally, nor questioned his integrity directly. His jabs at the U.S. position have been deft. Even if one does not trust his motives, it is clear that Putin has at least put Obama in the awkward position of having to justify why he drew red lines on Syrian use of chemical weapons and why he cannot wait for the UN decision -- and all that while Obama is in Russia, in front of a generally skeptical G-20 audience.
Putin is particularly skilled at keeping his opponents off balance. And there is no question that Obama is Putin’s opponent on the issue of Syria. All along, Putin’s goal has been to stop the United States from attacking the Syrian regime -- not to protect Assad but to protect Russia. Putin wants a strong leader in Syria who can keep things under control. He wants to make sure that terrorist groups with ties to extremists in Russia’s troubled North Caucasus region do not turn from operations in Syria to strikes against Russian targets. Putin also has some experience to draw on to achieve his goals.
He counts on being underestimated and discounted -- dismissed as the slouchy “bored kid at the back of the classroom” (as Obama described him in a news conference on August 9). This is an image Putin has cultivated for a very long time. As a bored kid in Leningrad in the 1960s and 1970s, Putin skulked at the back of classrooms but was energized in his free time by his pursuit of judo. He became extremely accomplished in the sport -- competing with distinction at the regional and national levels. Putin frequently underscores how much he benefitted from the qualities of judo. Naturally hotheaded and scrappy, the young Putin learned discipline through studying judo; it taught him self-restraint. His training focused on how to leverage his opponents’ strengths against them, and how to wait for the right moment to capitalize on their missteps. The real skill in judo is keeping the opponent perpetually off balance, not roughly pushing him down to the mat. Finesse, not force, earns points with the judges. This ability was a valuable asset once Putin joined the KGB and needed to, literally, stand and watch quietly in the shadows, waiting for someone to screw up.
Putin knows what he is doing. He stands back while others blunder in and act in the heat of the moment. He needles and riles his opponents so they trip themselves up and do his work for him. Putin intends to win this particular round of his sparring match over Syria on points. A decision against using force in Syria, an embarrassed Obama, the prospect of a unilateral U.S. intervention launched without even the imprimatur of the U.S. Congress -- all that can be spun as a Russian victory if Putin keeps his cool. Against the backdrop of the G-20 summit, the international community will be the judge of whether Putin or Obama has made the most skillful moves. 

Chủ Nhật, 8 tháng 9, 2013

IN 1894 Prince Henri d’Orléans published a book of his journey through France’s then-sprawling empire. His florid account was largely upbeat. Yet it soured along the northern coastline of Vietnam, where he lamented the “dilatory attitude of a red-tape administration” when it came to exploiting the area’s coal reserves.
Now red tape is again impeding foreign investment in Vietnam’s energy sector. The country’s electricity supply is fairly reliable—if compared with Myanmar and Pakistan. But daily life is punctuated by brownouts which analysts say will intensify unless officials reform a state-dominated power market and entice foreign companies to build more power plants. That also has sobering implications for the ruling Communist Party, which is trying to revive a slow economy and boost its sagging legitimacy.


In July an amendment to Vietnam’s 2004 electricity law reaffirmed a long-stated plan to create a competitive electricity market. But the government is scrambling to raise the roughly $5 billion in investment it needs each year to meet the soaring energy demands of Vietnam’s 90m people. The chief problem is the stranglehold that Electricity Vietnam (EVN) and other state-owned companies have over the power grid.
Vietnamese law requires EVN to sell much of its electricity at an unprofitable average of seven cents per kilowatt-hour. It means the company racks up debts with fellow state behemoths supplying coal and gas. A senior EVN executive recently told a state-run newspaper that losses between 2009 and 2011 exceeded $940m and that a 5% price rise in August will hardly improve things.
With energy demand growing by up to 14% a year, the situation cannot hold. The country is running down its easily exploitable reserves of coal and gas and by 2015 will become a net energy importer. Vietnamese investors do not have the money to bankroll the building of the sophisticated thermal plants needed to boost power output and replace Vietnam’s fleet of clunkers. (A plan to develop from scratch about 10,700 megawatts of nuclear capacity by 2030 is a pipe dream.) Yet given low electricity prices, few foreign investors see any profit in financing new plants.
Prices need to rise sharply, but cheap power is an essential component of the party’s social contract. Leaders worry that steep increases could spark unrest. The country’s poorest are increasingly sensitive to cost-of-living increases.
And so it remains unclear quite how far Vietnam will go with its plan to create a competitive and more transparent power market, one in which the state is supposed to play a less dominant role. Officials at EVN and other state-owned power producers benefit from state regulation, sometimes through corrupt practices, even as the companies they work for lose money. They have a vested interest in blocking structural reform. What is more, the government is wary of international financial exposure. It has not forgotten the fiasco at Vinashin, a huge state-owned shipbuilder. It ran up debt and in 2010 missed its repayment of a $600m loan arranged by Credit Suisse. The default forced a downgrade of the country’s sovereign debt.
Vietnam has so far been wary of giving generous incentives to foreign investors for power-grid development, says Oliver Massmann, a lawyer in Hanoi who specialises in energy. However, he warns, the lack of foreign investment in Vietnam’s energy future may mean that brownouts ultimately become rolling blackouts. That would compel international factory owners to consider migrating to Thailand, Indonesia and other countries in South-East Asia with more reliable supplies of power.
Meanwhile, an increasingly stressed electricity grid threatens to act as a brake on the economy at a time when many Vietnamese already blame the government for economic mismanagement. The last thing it wants is people taking to the streets in frustration over power cuts.