With around 4,000 wind turbines, 61,500 photovoltaic systems and 454 biogas plants, Brandenburg had the highest value of installed renewable capacity per inhabitant in Germany in 2023. IKEM has now conducted a study to examine the economic potential of this energy infrastructure for the region in detail. In this interview, Dàmir Belltheus Avdic, Head of Department at IKEM and co-author of the study, provides insights into the results of the study on value creation and explains how Brandenburg benefits from the energy transition in a variety of ways.
Dàmir, the study published by IKEM sheds light on the impact of renewable energies on Brandenburg’s economic development.
How can the importance that the expansion of wind power and photovoltaics already has in the region be explained?
The simple answer is that Brandenburg is well suited to wind and solar energy due to its geography. With three percent of the population but over eight percent of Germany’s surface area, it is less densely populated than the rest of the country and therefore has a lot of open space. Other reasons are the state’s innovative strength and adaptability: Brandenburg has fewer traditionally grown industries than many other states and has quickly adapted to and established new forms of economic value creation, particularly in the field of renewable energies.
Forecasts for the future net value added by renewable energies in Brandenburg are currently very promising. What factors could stand in the way of these growth targets?
Possible constraints could be of technical nature, such as problems with supply chains. We are also already seeing challenges in the availability of qualified workers. In addition, there are risks from a regulatory environment that does not sufficiently promote investment and the operation of renewable energy plants. Governments at federal and state level can mitigate these risks, for example by offering suitable education and training programs, creating the conditions for rapid plant planning and ensuring a stable support policy environment.
The study presents five pilot projects from Brandenburg. What economic and social effects do these “transformative projects” have for the local population and communities?
Nechlin wind heat storage facility, Steinhöfel climate park, energy self-sufficient village of Feldheim and Göllnitz-Lieskau-Rehain and Kantow wind farms are impressive examples of how value creation on a municipal level is promoted through renewable energies. The municipalities benefit from the establishment of wind farms and other plants through trade tax revenue, lease payments, compensation measures and income in accordance with Section 6 of the Renewable Energy Sources Act. These financial resources strengthen municipal budgets and enable investment in local infrastructure and social projects. In addition, the projects create local jobs, lead to contracts being awarded to regional companies and lower electricity and heating prices for the population. Overall, these projects make a decisive contribution to the economic stability and development of the region.
The hydrogen industry is seen as an important future economic factor. What role does hydrogen play in the further development of Brandenburg as a business location?
Hydrogen is an indispensable component of a decarbonized future. In view of Brandenburg’s strengths in the production of renewable energies, the state should also play a pioneering role in the production and use of hydrogen – among other things through a very good connection to the hydrogen core network being created in Germany. The resulting industrial activities will lead to high levels of added value as well as additional tax revenue and jobs in the state of Brandenburg. Moreover, an important export industry could develop.
The expansion of the electricity grids by 2045 is also cited as an important driver of value creation. What measures are required to ensure that the infrastructure can keep up with growing demand?
The difficulty of transporting electricity over long distances is a well-known problem in any energy system that attempts to decarbonize individual sectors through electrification. Germany, with its significant renewable electricity generation in the north and its large industrial and urban centers in the west and south, is no exception. The expansion of the electricity grids is being held back primarily by political concerns, which should be resolved as quickly as possible.
IKEM’s work paints a positive picture of the regional energy transition. Why is it important to focus on its potentials and opportunities?
Positive change is still change, and we live in times of risk and uncertainty. This means that we need to win the hearts and minds of people, even if they are distracted, fearful for their own and their families’ futures or frustrated by injustices in the current system. But fear and anger are not appropriate drivers for positive change and, in my opinion, should not guide policy. Successful transformation requires a positive and optimistic vision. That is why IKEM focuses on scientific communication that emphasizes the opportunities that arise from the fight against climate change. Value creation is a path to prosperity that people intuitively understand and is therefore a key aspect that we must emphasize more.
