With the presidential elections in full swing, concerns over climate change and crippling dependence on foreign oil have emerged as hot topics of debates. But instead of prolonging the back and forth of politically charged arguments, the US can look across to Galicia, Spain for a successful example of policies that addresses oil dependence and spurs growth in renewable energy.
Over the last decade, Galicia, a region formerly entirely dependent on imported fossil fuels committed itself to turn to renewables and has recently emerged as a global leader in both the wind and solar energy sector. As a region, Galicia matches and often surpasses entire nations in wind energy production. Galicia is ranked sixth worldwide in wind energy production after Germany, the U.S., the rest of Spain, Denmark and India, producing more wind energy than California and Texas combined. Galicia is also emerging as a leader in various solar innovations as well.
The author of this commentary is Juan Paredes, Director of the Galician Institute of Economic Promotion (IGAPE) for the US. He graduated with a Law Degree from the University of Santiago de Compostela, before completing a Masters of International Law at the University of Sydney in Australia. He served as CEO of the Spanish Chamber of Commerce of Australia, before coming to the US to launch IGAPE's New York office. He is an expert in issues of international trade, investment and economic development.
With the presidential elections in full swing, concerns over climate change and crippling dependence on foreign oil have emerged as hot topics of debates. But instead of prolonging the back and forth of politically charged arguments, the US can look across to Galicia, Spain for a successful example of policies that addresses oil dependence and spurs growth in renewable energy.
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Over the last decade, Galicia, a region formerly entirely dependent on imported fossil fuels committed itself to turn to renewables and has recently emerged as a global leader in both the wind and solar energy sector. As a region, Galicia matches and often surpasses entire nations in wind energy production. Galicia is ranked sixth worldwide in wind energy production after Germany, the U.S., the rest of Spain, Denmark and India, producing more wind energy than California and Texas combined. Galicia is also emerging as a leader in various solar innovations as well.
Best known for its medieval Cathedral of Santiago de Compostela, Galicia is now home to over 112 distinctly operated wind farms, generating nearly a third (30%) of Spain's total output and powering as many as 1.5 million households.
So, how has it gotten there?
This exceptional situation comes, thanks in part, to Galicia's location and geographic features which makes the establishment of hydroelectric and thermal power stations, hydraulic operations, wind farms, and solar power stations ideal. But it is also the result of a concerted effort by the regional government and the Galician Institute of Economic Promotion (IGAPE) to attract investment and create favorable tax and legal systems for qualified investors, including capital grants, low interest or "soft" loans and training assistance.
Perhaps more impressively, this incredible growth has happened in relatively short order. After all, it's been only about a decade since the federal Electricity Act of 1997 established the right for wind farm developers and operators to.
"Connect renewable installations to the grid"
"Transfer output from these installations to the grid"
"Receive a premium payment in return"
The establishment of this law – creating the legal framework that enabled wind farms to sell energy under either a regulated fixed tariff option or a market option that provides for a legislated premium as well as a bonus on top of the market price – has been critical to this development. As current supply chain issues are overcome, and technology, location, site-ing and other operating risks become better understood, and more effectively managed, there can be no doubt that wind energy growth will continue well into the next decade.
And the Galician government has been committed to making growth a reality. On March 29, 2006 it began enforcing a strict set of environmentally friendly building codes implemented by the government called "Código Técnico" – which has helped bridge the traditional gap between "building" and "green building."
The Galician government hopes its new standards will have a lasting impact on reducing its total carbon footprint up to 55%.
For large developers any new construction or large renovations have to follow the "Código Técnico" standards, which include: for residential areas, any new constructions or major modifications of buildings require solar thermal panels to cover 30-70% of the hot water demand. In large public buildings, there is a minimum energy requirement specifying how much energy has to come from solar thermal panels, depending on the size of the building and what climate zone it is in. What's more, Galicia must uphold certain bio-climatic architecture criteria to make sure that the design will increase buildings' efficiency.
To incentivize those individual homeowners or small business owners who struggle with a cost barrier, INEGA (the Galician Institute of Energy) has implemented a series of valuable subsidies. These subsidies apply to thermal solar panels, photovoltaic panels, biomass installations and mini wind-turbines. Because these subsidies greatly minimize the out of pocket costs for the consumer wishing to sustainably build, they have been widely adopted across Galicia.
Through these incentives, Galicia has successfully achieved the elusive balance between government requirements and cost effectiveness.With these policies in place, Galicia has emerged as a formidable player in the wind industry sector and is primed to set new records with solar innovations as well. Numerous companies with innovative, efficient solar technologies are frequently coming out of Galicia and the United States and international players are realizing they need to take notice.
Solar PST, a Galician company in the city of A Coruña, recently opened the largest thermodynamic solar plant in Europe (3,000 square meters) in Portugal's Pavoa de Vazim. This factory is designed to supply all of Europe and the U.S. through international distributors. Solar PST's thermodynamic solar panels, which work 24 hours a day in rainy, windy and overcast conditions, are 80% more efficient than other solar panels on the market. Solar PST has installed its panels in swimming pools of 600, 400 and even 40 square meters, has heated sanitary waters and produced a 100% increase in water temperatures in hospitals, hotels, and other living spaces. The Solar PST panels can also be used in a facility's central heating system. Solar PST has an American affiliate in Miami, Florida.
T-Solar (half owned by Isolux Corsan) is in partnership with Applied Materials and Germany based Ib Vogt (Germany) to open a solar panel factory in Galicia in 2008. The factory will produce the most efficient solar panels in the EU, and expects revenue of € 100 million in 2009.
Another Galician solar technology developer, Cambados OCV, has launched a thermal solar panel specially geared for the Galician climate – which can be cloudy and overcast, yet sunnier than world solar leaders, Germany and the Netherlands - called "Reisol". These Reisol panels can be put to use domestically and commercially, notably in homes, stores, factories and schools. What's more, the panels are made of 95% recyclable materials.
Galicia has discovered the elusive balance of how to be simultaneously sustainable and profitable. In the last decade, Galicia's GDP was 3.46% — a growth rate that exceeds that of the European average. With government involved in the encouragement of these critical practices, Galicia is leading the way in overall sustainable practice.
For this reason alone Galicia can be a perfect model for the U.S. in shaping effective, environmentally conscious and profitable energy policies. By following Galicia's lead, the U.S. can eliminate the debilitating effects of oil price fluctuations and harness its own source of renewable energy.
