Municipal Added Value through Solar Power Systems in the City of Freiburg

Abstract: The transformation of the conventional energy system towards renewable energies has entailed an increasing decentralization of energy generation in Germany, as the production units are smaller and draw on regional potentials. This can result in positive socio-economic effects in regions where the potential is exploited. The focus of this paper lies on evaluating existing methods and developing new ones, which can be used to determine local added value through renewable energy systems. The methods were required to cover direct as well as induced municipal added value effects and to include all steps of the examined value chain. A combination of methods was tested in a case study for the solar power system value chain in the city of Freiburg (ca. 220,000 inhabitants). The added value through this sector in the year 2009 was calculated at 30.8 million euros through direct effects and 6.2 million euros through induced effects. This total municipal added value of 37 million euros can be converted into roughly 1,500 jobs within the city boundaries. Based on some conservative assumptions, these numbers should be considered as minimum values.