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German communities want a piece of the energy pie

Monday, 27 July 2009


FRANKFURT, July 26 (AFP): From small towns that dream of heating homes with their own wood to major cities that are launching municipal power companies, German authorities want a slice of their energy markets.
Picturesque Schmalkalden, population 21,000 in the woodlands of eastern Germany will soon produce its own electricity.
"Decentralised energy is the way forward," the town's project manager Rene Killenberg told AFP.
Taking on the German power giant E.ON, which dominates the local market, Schmalkaden will install five turbines that run on natural gas and biogas this year to supply inhabitants with heat and electricity.
Eventually, the town hopes to generate power with local wood supplies and earn money in the process.
"We have a historic town centre that is expensive to maintain," Killenberg explained.
"For residents, there is a big difference between paying their electric bill to a company listed on the stock market and making a local patriotic gesture."
Many cash-strapped German municipalities are rediscovering a similar "patriotism," 10 years after selling off large parts of their local utilities.
"There is also, especially in the east, the desire to reduce dependency on Russian gas" which was cut off briefly during a dispute between Russia and Ukraine earlier this year, said Emanuel Heisenberg of Greenviornement.