3.1. Ecological Dimension
The ecological dimension of Peatland PV is multifaceted. Just as with peatland conservation in general, different aspects like the hydrology of the specific implementation site, species protection, soil conservation, and climate change mitigation are concerned. Possibilities of general statements are limited, as the conditions are usually very site-specific (1:12).
3.1.1. Perspectives on Peatland PV Differ According to the Reference
Climate change mitigation and nature conservation are not the same, as the nature conservation expert emphasises (1:45). A highly degraded peatland, e.g., drained and intensively managed grassland, will be upgraded through rewetting, despite the construction of PV modules (1:45). From a nature conservation perspective, this enhancement is certainly not comparable with pure rewetting, but the reference here is ultimately the continuation of intensive drainage-based land use (1:45). Wet peatlands, including rewetted peatlands, despite of being permanently altered due to the drainage history, can offer a variety of other ecosystem services in addition to the carbon store function (8:18). These include for instance groundwater retention, water storage and water quality improvement, evaporative cooling, and flood protection (8:18). Whether rewetted peatlands can also provide these services to a comparable extent when combined with PV needs to be openly investigated for specific Peatland PV project sites, different peatland types, and different regions (8:19).
3.1.2. Hydrology of Peatlands and Climate Change Mitigation
The positive effects of the peatland rewetting due to the preservation of peat as a long-term carbon store are mutually agreed on by the experts (1:103; 2:16; 3:20; 6:25; 8:38). Though the degree of rewetting associated with Peatland PV is a central point of discussion for all experts. Especially, the PV experts expressed the need for clarification on the specific water level on the site since it influences trafficability and project feasibility (5:33; 5:86). In this context, some experts raise concerns that water levels might only be partially raised to 30 cm below the surface or even lower in order to meet technical requirements, while optimal climate effects are not met (3:20).
The representative of the Farmers’ Association assumes that active water management on site allows for continued fodder production, which does not correspond to full rewetting (2:71; 2:74; 2:77). Yet only full rewetting with water levels close to the surface can reduce CO2 emissions to zero, achieve an optimal climate effect, and stop land subsidence (1:103; 3:20; 8:38).
Peatland experts are sometimes criticised by nature conservationists for considering a combination of rewetting and open-space PV (8:20). Concerns have also been raised that the possibility of Peatland PV could lead to pressure to also cover already restored sites with open-space PV (3:22). At the same time, 530 ha of drained peatland in Germany have already been built over with open-space PV without rewetting (8:20, June 2022). This is a problem and must be prevented in the future (8:20). According to the expert of the highest public authority on nature conservation and agriculture, Peatland PV should only be implemented on previously drained peatlands in combination with rewetting: full rewetting with optimal emission reduction should be a fundamental criterion (6:20; 6:25). Experts argue that selecting suitable peatlands is crucial for rewetting, as the specific type of peatland and hydrology of the site in combination with the adjacent infrastructure, such as villages and roads, can already limit possible rewetting (1:94; 2:66; 2:38; 2:66).
3.1.3. Effects of Shading on the Vegetation
The peatland expert considers the influence of shading by the PV modules as a relevant factor (8:24). Depending on the construction method of the PV modules, shading of the peat body can vary strongly between 50 and 80% (1:23). Even in the case of conventional elevated PV constructions, diverse vegetation can form, according to the PV experts (5:15), as sufficient light still reaches the ground underneath the modules (7:88). In the case of Peatland PV, the specific effects on microclimate and vegetation are still uncertain due to the lack of scientific assessments (1:23; 3:16). Furthermore, vertical elevation and larger row spacing of PV modules could be comparatively more beneficial for flora and fauna (1:108). It is important, though, to consider the ecological benefits in comparison with the economic costs (1:108). In addition, reduced solar radiation and thus reduced evaporation could have positive hydrological effects on the peat body (4:11).
3.1.4. Nature Conservation, Species, and Soil Protection
Species protection (for both plant and animal species) must be considered (9:21), since rewetting always includes opportunities for the entire biocoenosis and species diversity, e.g., the diversity of insects (1:13). One expert doubts that Peatland PV brings the same added value as pure rewetting (3:66). However, under the policy framework of recent years, it is unlikely that the policy goals for peatland restoration can be met without any combination with other land uses (3:68).
Possible risks to species conservation are debated: The peatland expert sees minimal risks for species conservation in the case of Peatland PV, as rewetting would presumably even result in greater biodiversity than previously existed on intensively used and species-poor arable land or grassland (8:24). Nevertheless, rewetting and construction with PV will impact individual species that previously inhabited the site. However, the reference is not a near-natural peatland but the continued use of a degraded peatland. Therefore, this is ultimately a trade-off between currently existing species on the site and peatland-related species returning after rewetting (8:24).
Other effects, such as large reflective surfaces of the PV modules with an impact on migratory birds also apply to open-space PV on mineral soils and are not specific to Peatland PV (8:25). The problem of collisions with PV plants is not as great as with wind turbines, or at least there is no comparable data basis available yet (8:25).
The lower public authority conservationist emphasizes the importance of grassland for fauna, particularly avifauna like the white stork (Ciconia ciconia), as one of the main reasons for the rejection of many open-space PV plants in the past (1:10). If more sites will have to be opened up for PV construction in the future, sites with hard exclusion criteria for species protection, like eyrie protection zones, should continue to be excluded from PV construction (1:132). The representative of the Farmers’ Association believes that Peatland PV in protected areas should not be excluded in principle but calls for a case-by-case assessment concerning the specific conservation objective (2:46). Another expert fears a future threat of pressure to use areas that already have been rewetted, although the exclusion of these areas can be assumed (3:22). PV plant installation poses potential risks to vegetation and soil compaction. However, the geotechnical engineer argues that these risks can be managed through thorough project preparation and the use of special machinery to minimize negative impacts (9:67). For the expert from the highest public authority for nature conservation, the bottom line is that Peatland PV is to be welcomed if there are no nature conservation concerns on the specific site (6:21).
3.1.5. SWOT Analysis on the Ecological Dimension of Peatland PV
The ecological dimension is summarised and structured in the following SWOT matrix (
Table 2). The ecological strengths of Peatland PV are mainly due to rewetting. Peatland ecosystem services can be restored, which often leads to an improvement of the site and creates opportunities to achieve larger-scale societal ecological objectives. Although benefits for peatland biodiversity are expected, the possible displacement of protected species that are not typical for peatlands can be assessed as a weakness. Additional weaknesses are mainly related to the necessary construction work and its negative consequences for vegetation and soil. The effects of shading by the modules on evaporation and thus on the landscape water balance and vegetation cover could be a strength or weakness but still need to be quantified. Ecological threats are identified as insufficient rewetting if water levels are set too low and there is potential future pressure to utilise already restored areas.
3.2. Technological Dimension
The technological dimension, like the ecological one, is site-specific, as certain local conditions may require different technical solutions. Only a limited number of generic statements and considerations for implementation could be made by some of the experts. These technical framework conditions are especially relevant for the economic dimension of the Peatland PV assessment.
3.2.1. Project Planning and Geological Analysis
Ground-mounted open-space PV projects begin with geological investigations during the planning phase, followed by a feasibility study during the approval process (9:25). This combines a desktop study with initial field parameters. Additional investigations are needed for construction and installation. These include in situ pile load tests, as well as mechanical and chemical soil investigations (9:25).
Compared with conventional open-space PV, only some soil parameters can be determined in the planning phase under drained conditions. These include soil chemistry, i.e., the acidity or salinity of the soil, as well as the degree of decomposition of the peat, among others (9:36). Other parameters, such as soil stability, are strongly influenced by water content. Especially when building with small piles, comparative tests and test loads in a wet state are necessary (9:39).
Overall, site- and project-specific considerations should be made for each peatland regarding the durability of the construction in chemical terms, as well as in terms of load-bearing capacity and foundation depth (5:51; 7:31; 9:33). Right from the planning and implementation stages, the peatland rewetting and PV installation measures should be considered together and implemented in parallel (1:136; 2:55).
3.2.2. Adaptation of Construction Equipment, Infrastructure, and Soil Protection Measures
Due to the changed, softer soil conditions resulting from rewetting, many experts expect various challenges. In particular, they point to the necessary stability of the ground-mounted PV plants and the accessibility of the rewetted site for machinery (2:17; 3:15; 4:24; 4:65; 5:35; 5:82).
Similar to paludiculture (6:40), the reduced accessibility for heavy machinery and construction equipment requires adapted technology (7:48; 9:43). For example, converted snow groomers with particularly wide tracks and consequently lower soil pressure could help to protect the soil and vegetation as much as possible (9:67). For the initial pile-driving work, the use of normal tracked construction equipment should be sufficient in most cases. For delivering material by truck, additional ground protection mats would be necessary (9:70).
Special construction equipment is still only available in small numbers in Germany (9:43). This increases the effort and cost of providing and delivering suitable equipment for construction (9:43). Nevertheless, the production of adapted machines for the construction phase is possible and comparatively uncomplicated for established mechanical engineering companies that build such crawler tracks (9:94). Another idea is to prestructure sites by creating backfills with accessible paths so that other partial areas do not have to be driven over. Additional costs would have to be expected here too (5:85).
The PV expert points out that an access road must be suited for the delivery and removal of a transformer station weighing at least 20 tonnes, as well as for the dead weight of the heavy-duty crane weighing at least 40 tonnes. For maintenance and repair, the accessibility and trafficability for a heavy-duty crane must also be permanently given (5:76). Major problems with Peatland PV for electricity connections via cable routes are not expected (5:111).
3.2.3. Installation and Foundation of the Modules
In addition to the consequences for trafficability, the changed ground conditions due to rewetting also have an impact on the installation and foundation of the constructions. The stud frames would have to provide sufficient support for the dead weight of the modules and possibly additional snow loads, as well as enough resistance to wind and its potential lifting forces (5:37; 5:54).
A PV plant is composed of several parts, including the substructure with foundations. If the foundations need to reach mineral soil below the peat layer and if the modules possibly need to be lifted higher above the vegetation, the driving posts might have to be longer accordingly (5:45; 9:97). Handling the driving posts would become very difficult. In addition, the softer ground conditions could require smaller distances and thus a higher number of driving posts (5:45).
The assessment of the changed conditions for the installation of Peatland PV in comparison with open-space PV on drained peatland is a matter for a geologist and specialist in soil foundation and rewetting (5:30). The geotechnical engineer gives insights into the technical consequences for full rewetting in combination with Peatland PV: (a) the bending moments of the posts due to wind load are maximised just below ground surface, (b) the corrosion attack due to the increased atmospheric oxygen input at the ground surface is maximised, and (c) in the case of rewetting with mean water levels close to ground level (0 to 40 cm below the surface), the negative effects in terms of bearing capacity reduction are maximised (9:82). Nevertheless, according to the geotechnical engineer, there are technical solutions to all these problems; hence, complete rewetting can be considered the norm for Peatland PV — especially in consideration of the other ecological benefits (9:83). The peatland expert uses the analogy with the construction of wind turbines in the sea and floating PV on lakes to illustrate that the construction of PV on wet peatlands must also be technically feasible (8:39).
3.2.4. Durability and Service Life of Materials
The standard materials used in the construction of open-space PV plants are conventional and highly cost-effectively optimised steel posts or small piles with variable zinc coatings (5:65; 9:22). Special or thicker coatings of the substructure might be necessary to achieve suitable corrosion protection (7:24; 9:44; 9:57). According to the geotechnical engineer, steel corrosion is difficult to predict despite existing literature values. With the exception of polymer coatings, this is mainly a matter of probability (9:73). However, the available experience regarding chemical resistance is sufficient to realise the 30-year service life that is now common in bank financing (9:76).
Besides special coatings, there is even a possibility of the development of new construction methods based on alternative building materials (9:22). For example, flat-roof PV construction methods could be adapted to peatlands. Dolphins, i.e., piles driven into the seabed as fixing points or as protecting structures, are already made of plastics in coastal regions of the Netherlands (9:47).
3.2.5. Maintenance, Care, and Mowing
Within the technological dimension of Peatland PV, maintenance and care are also considered critical factors by several experts (1:114; 2:17; 3.24). Maintenance is carried out at least once a year for standard constructions (5:68). The interval of inspections would potentially have to be shortened in the case of difficult site conditions, such as greater corrosivity and ground movement (5:72). This also means that the accessibility of the site has to be ensured to a greater extent, both for the maintenance team and for the transport of repair materials. Such inspections regularly take place in spring and autumn, but not during the main production period (5:72).
While no advantages or disadvantages were mentioned for cleaning the modules compared with conventional open-space PV (5:79), keeping the vegetation short in the case of Peatland PV raises new questions (3:17). Since sheep grazing is no longer possible after full rewetting with water levels close to the surface, technical mowing between or under the modules might be necessary (9:34), which is also standard practice for conventional open-space PV (7:91). The modules should not be shaded, e.g., by reeds growing tall (1:25).
Adapting mowing and harvesting technology for Peatland PV is similar to paludiculture. The development and provision of new technology is costly but manageable (6:40). The geotechnical engineer also sees a greater maintenance effort but no insurmountable challenges (9:89). For mowing, it might be necessary to manufacture smaller machines, e.g., beam mowers for the work under the modules (9:94).
3.2.6. Dismantling
When planning the Peatland PV plant and its dismantling, it should be assumed that the area will remain permanently rewetted and that there is no possibility of short-term drainage. Therefore, the dismantling process must also be feasible in wet conditions (5:96). The same equipment that would be used for installation could also be used for deconstruction. The pile driver with appropriately wide crawler tracks with a reverse start function, and so-called ‘impact reversal’ could drive the piles out of the ground just as well as they were driven in. On this basis, the geotechnical engineer estimates that the challenges of deconstruction are just as surmountable as those of installation (9:103; 9:106).
3.2.7. Alternative Construction Methods
Most experts referred to the conventional ground-mounted construction method with elevation on steel piles, even though floating structures on flooded sites could be an alternative construction method for Peatland PV (4:29). One PV project manager estimates the benefit of floating construction for Peatland PV to be rather low: Technical solutions are conceivable in principle, but the sites would have to be comparatively large and, above all, evenly structured (5:58). The peatland expert points out that shallow lakes are subject to greater water level fluctuations than other lakes and the PV modules could sink uncontrollably in summer if evaporation is very high (8:44).
Other construction methods, such as plastic troughs or areal foundation elements that are resting on the ground surface, might face problems like subsidence and lifting forces (5:54; 9:97). According to the geotechnical engineer, a foundation with small piles in the mineral subsoil would be the norm. The comparatively low impact on vegetation and soil, as well as the low degree of ground sealing, minimises conflicts with nature conservation and the target of a high groundwater recharge rate (9:97).
There are also numerous options and construction methods for the choice of modules and their orientation, which probably differ in impact, e.g., on shading and vegetation development. In addition to conventional ‘monofacial’ modules in a southern orientation, there are new technologies such as ‘bifacial’ modules in an east-west orientation or tube systems at a height of several metres (6:58).
3.2.8. SWOT Analysis of the Technological Dimension of Peatland PV
The SWOT matrix displays the main aspects of the technological dimension (
Table 3). The reference within the comparison is mostly open-space PV on mineral soils. From the technological perspective, there are hardly any strengths of Peatland PV but many weaknesses concerning planning, installation, operation, and dismantling, resulting in threats like additional expenditure, slowing down of the individual project phases, and questioning profitability. However, adapted technology and equipment are already available, and opportunities are created by improved technology, proper project planning, and knowledge gained from pilot sites.
3.3. Legal Dimension
In a constitutional state like Germany, every form of land use is subject to its legal framework which determines whether, where, in what form, and to what extent PV projects can be realised. New projects, procedures, and technologies can raise uncertainties regarding the application and interpretation of legal provisions, and it is not uncommon that amendments and adjustments are required by the legislator. The specialist lawyer for agricultural law emphasises the need for action not only in the adaptation but above all in the inter-coordination of the various specialised legal regulations, including spatial planning, construction legislation, the Renewable Energy Sources Act, and the nature conservation law (10:54).
3.3.1. Spatial Planning, Suitability Areas, and Construction Legislation
The German Spatial Planning Act (ROG) defines the tasks, guiding principles, and binding effects of spatial planning at the national level. Requirements are a cost-effective, secure, and environmentally compatible energy supply, as well as the expansion of energy networks. Further requirements, such as climate change mitigation, the expansion of renewable energies, and the preservation and development of natural sinks for substances harmful to the climate, must be considered (§ 2 para. 2 no. 4 ROG).
Since most of Germany is densely populated and its land is intensively used, land use is heavily regulated. These legal regulations should be adapted to allow for creative and synergetic land use solutions, according to the geotechnical engineer (9:109). PV should be constructed space-efficiently and close to the grid infrastructure if possible, and it is common ground among the experts that the potential for PV on conversion sites, brownfields, sealed sites, and roofs should be exploited first (2:62; 3:55; 6:60; 8:70; 10:71). In the meantime, the German government has also spoken out in favour of directing the PV expansion to roofs and other sealed surfaces, as well as to technologies that enable multiple uses of the surface [
41]. Since the use of sealed surfaces for energy is expected to be not sufficient to achieve the climate targets by 2030 (2:62; 8:70), the potential of buildings and roof surfaces must be met with a similar amount of expansion in open space (2:62). In MV, the use of agricultural land for PV and therefore also Peatland PV is generally only allowed close to motorways, federal roads, and railways (LEP-LVO M-V). In 2021, the state parliament granted approval for the wider use of PV on agricultural land if certain criteria are met [
42,
43]. Various experts welcome the additional expansion of open-space PV, as well as the prospects of Peatland PV (2:62; 4:21; 10:71; 10:74).
In the designation process for open-space PV and Peatland PV, the exclusion principle could be applied. For example, protected areas, areas with a special value for the protection of species or the landscape should be excluded, according to the nature conservation expert (1:17). Instead, intensively used sites that are under strong ecological pressure should be considered as priority (5:12). Such sites could even benefit from enhancement through the implementation of Peatland PV (5:12; 5:15). The peatland expert refers to the strategy on peatland utilisation in MV and the proposed category ‘suitability without assessment requirements for paludiculture’, which comprises the most degraded peatland soils in MV with approximately 85,000 ha (8:57; 8:61) [
8].
According to the experts, the bureaucracy surrounding the approval procedure for Peatland PV must be simplified, shortened, accelerated, and overall, designed more efficiently (1:57; 1:130; 4:69; 4:71; 5:133). The legal privileging of Peatland PV in the Building Code could help to speed up the necessary bureaucratic processes, comparable to the privileging of wind power in § 35 para. 1 BauGB (4:74; 10:60; 10:64; 10:67). Generally, all specialised legal regulations must be adapted and aligned in order to allow for efficient approval processes and the successful construction of Peatland PV plants in the end (10:56). Additionally, the designation of suitability areas could fasten the approval processes, either at the community level or at the federal spatial planning level (1:124; 1:130; 4:71; 10:61). Wind power, for example, is already covered by a specialised law, which mandates the individual states to define suitability areas and therefore fastens the approval processes.
The obligation of the municipality to inform and include a multitude of authorities and representatives of public interests is one reason for the complicated approval procedure, according to the agricultural law expert (10:56). The lower nature conservation authority usually has the most conflicts and thus often has the most objections (1:52). Therefore, the legislator should provide the nature conservation authority with guidelines for dealing with Peatland PV as soon as possible (8:66). The continuation of drainage-based agriculture with its negative climate impacts should be used as reference when authorities weigh up the opportunities and threats of Peatland PV (8:29). Concerns about negative developments comparable to the contradictory incentives of maize cultivation on drained peatlands for biogas production could be addressed by introducing an area cap per federal state (8:21). Experts were already considering the inclusion of peatland PV in the EEG in 2022 (5:133; 5:135), which has come into effect in the meantime [
44].
3.3.2. Energy Legislation
In Germany, one of the most important legal frameworks for the realisation of open-space PV is the Renewable Energy Sources Act (EEG) and its amendments, although the EEG subsidy is generally becoming less important for open-space PV, as it competes with power purchase agreements (PPAs) (5:99). These PPAs are now running on a large scale (5:99). For Peatland PV, the EEG only has validity and increased attractiveness if a special allowance or a separate cost-efficient tender is introduced specifically for Peatland PV, according to a PV expert (5:99; 5:133; 5:135).
Due to additional costs, Peatland PV might have fewer chances in the EEG tender process compared with conventional open-space PV. Without a separate tendering segment, there is a risk that Peatland PV projects will not be selected. Policy adjustments were considered necessary by experts (2:49). Lack of knowledge about technical parameters makes it difficult to estimate the right amount of subsidies and fixed feed-in tariffs to ensure the economic operation of such Peatland PV constructions (4:84).
The amendment to the EEG 2023, which also mentions rewetting as a condition for the construction of open-space PV on peatlands, can be considered as the main turnout for Peatland PV (6:33). It is now a matter of law that the construction and operation of renewable energy plants are in the overriding public interest and serve public safety (§ 2 sentence 1 EEG 2023). In addition, Peatland PV is officially included as a new land category in the tenders for first-segment solar installations: According to § 37 para. 1 no. 3 lit. e EEG 2023, they belong to the special solar installations that meet the requirements laid down for them in a determination by the Federal Network Agency in accordance with § 85c EEG 2023, e) on drained and agriculturally used peatland soils, if the sites are permanently rewetted with the construction of the solar installation. The new regulation of the EEG 2023 requires bidders to declare that the construction of the plant will not create any additional obstacle to future rewetting of peatland soils (§ 30 para. 1 no. 9 EEG 2023). The applicable value for Peatland PV has increased by 0.5 cents/kWh, as per § 38b para. 1 sentence 3 EEG 2023. This value is used for calculating market premiums and feed-in tariffs. If the PV plant meets Federal Network Agency requirements [
45], the applicable value is 7 cents/kWh. The additional agricultural use of the sites in the form of paludiculture (Paludi PV) can be regulated in the requirements (§ 85c para. 1 sentence 3 EEG 2023).
3.3.3. Nature Conservation Legislation
The agricultural representative is convinced that there are suitable sites in MV for the combination of peatland rewetting and open-space PV. Under the condition of a detailed assessment of compatibility with individual conservation objectives, they consider the categorical exclusion of protected areas inappropriate (2:40; 2:41; 2:46; 2:63). Another expert called for a political decision on which interest should be given greater weight in evaluation processes (3:36). The Federal Agency for Nature Conservation (BfN) and the German Nature and Biodiversity Conservation Union (NABU) agree that protected areas like the European Natura 2000 should be free of construction such as open-space PV. However, exceptions are possible for nature parks, landscape conservation areas, and biosphere reserve development zones, as long as the protection goals are met [
46] (p. 6), [
47].
Until electricity generation in Germany is GHG neutral, renewable energies are said to be prioritised in the respective balancing of conflicting interests (§ 2 sentence 2 EEG 2023). Even the expert from the conservation authority admits that in the course of the expansion of open-space PV and wind power, new standards would have to be set, and old taboos in conflict with nature conservation might have to be broken (1:130).
3.3.4. Land Status in Interim and Subsequent Use
In the approval process, the type of interim and subsequent land use should be specified in the development plan (10:27). Different classifications are possible, depending on the legal field, e.g., building planning law or agricultural subsidy law. Accordingly, a site that is no longer used for agricultural purposes due to the construction of an open-space PV plant loses its eligibility for subsidies of the EU Common Agricultural Policy (10:20).
According to § 9 para. 2 BauGB, land use and construction permits can be legally limited to a certain period of time or until certain circumstances arise. The subsequent use is to be specified in that case (§ 9 para. 2 BauGB). The legal framework § 201 BauGB only includes a definition of the term agriculture, but no further differentiation between arable land and grassland (10:27). Legal certainty regarding the subsequent use specifically as farmland is thus not given, according to the expert on agricultural law (10:27).
In addition to agricultural subsidy law, nature conservation law can protect permanent grassland (10:20), i.e., prohibiting the conversion to arable land if a grassland site was not ploughed for at least five years (DGErhG M-V). Whether extensive grassland developing below the PV modules is legally classified as permanent grassland or not is disputed among experts. According to the expert from the nature conservation authority, the interim use of PV plants is exempt from this regulation (1:177). This is opposed by the assessment of the energy agency expert and the expert for agricultural law (4:39; 10:32; 10:35). Both argue that the current legal framework does not guarantee a return to arable land after dismantling, as the building planning law cannot undermine nature conservation law and the Permanent Grassland Preservation Act. This controversy highlights the need for political clarification of legal framework conditions for interim and subsequent land status for conventional open-space PV, as well as Peatland PV and Paludi PV (4:39; 10:32; 10:35).
3.3.5. Consequences for Valuation and Inheritance Tax Legislation
Peatland PV is built on previously agriculturally used sites, which are tax-privileged property assets. The change in land use may affect the calculation of property tax and inheritance tax, causing economic hardship to landowners (10:41; 10:42). This is not limited to Peatland PV but affects open-space PV in general (10:48). Legislation must be adapted effectively to create legal certainty for landowners and farmers, e.g., regulations of the Valuation Law (BewG) and Inheritance Tax Law (ErbStG). Legal adjustments should be manageable, according to the experts (4:42; 10:45; 10:55).
3.3.6. Eco-Account Regulation and Guidelines on the Impact Mitigation Regulation
The German Building Code (BauGB) requires avoiding and compensating negative impacts on the landscape and balance of nature. Interventions in nature and landscape involve changes to the shape or use of land or to the groundwater level that may significantly impair the balance of nature or landscape’s performance (BNatSchG). State law specifies what is considered an intervention (NatSchAG M-V) and regulates compensation measures and their stocking for future interventions through eco-accounts and land agency recognition (ÖkoKtoVO M-V). Compensation needs and requirements are detailed in the Guidelines on the Impact Mitigation Regulation (HzE).
The implementation of the Impact Mitigation Regulation differs in the federal states, with so-called eco-points being calculated for the change in value of initial and target biotopes (3:45). In MV, the compensation measures themselves are assessed in proportion to the size of the area (3:45). Generally, measures such as rewetting are only granted if permanence can be ensured (3:49). Maintaining the carbon store as an ecosystem service does not yet play a role in the impact compensation regulation (3:45). However, the threat of missed target conditions, such as specific water levels, could cause additional problems (3:82). The inclusion of securing the carbon store as an ecosystem service in the Eco-Account Regulation and further guidelines (HzE) is generally possible (3:78). This concerns the preservation of the existing carbon store and minimising CO2 emissions. Carbon storage as a process, i.e., carbon sequestration, has to be assessed differently. According to an expert, the increase in carbon accumulation on the site is questionable (6:54).
The construction of an open-space PV plant with simultaneous compensation by rewetting peatland on the same site has not been implemented yet and is not included in the Guidelines on the Impact Mitigation Regulation (HzE). Due to ecological restrictions, e.g., for breeding and resting birds, it would certainly not be possible to achieve the same ecosystem value as with pure rewetting. If rewetting is counted as a compensation measure, a change in the HzE specifications is required (3:32; 3:45). One expert argues that rewetting should be sufficient as compensation for the impact of the Peatland PV plant (7:125; 7:132; 7:135).
3.3.7. SWOT Analysis on the Legal Dimension of Peatland PV
Table 4 highlights the SWOT aspects of the legal dimension, with the amendment to the EEG 2023 explicitly mentioning Peatland PV and declaring that renewable energies are in the public interest as a strength. However, multiple weaknesses in the legal dimension are evident due to ambiguities in specialised legal regulations. Adaptations offer opportunities for legally secure implementation. The difficulty of harmonising complex regulations is a threat. Multiple legal uncertainties are considered as weaknesses causing threats in the practical realisation of Peatland PV, especially for pioneers.
3.4. Economic Dimension
The economic dimension of Peatland PV is complex and interconnected with other dimensions. It involves the business perspective of landowners, land users, and PV project developers, as well as the macroeconomic and societal perspective, including social acceptance. Profitability is crucial, as measures that do not yield profits are unlikely to be implemented (4:54).
3.4.1. Economic Profitability for the PV Project Developer
Experts see great threats to the economic viability of Peatland PV, especially due to the technical hurdles and the resulting additional time and financial effort (2:49; 5:45; 5:106; 7:75; 7:166; 10:42). The additional technical effort, which is mainly due to higher material costs, more specialised equipment, and more challenging operations, is highly dependent on the individual project (5:45). Some experts estimate the additional costs for the overall installation at 10 to 20% (7:75; 9:60), while one expert could even imagine an increase of 50 to 100% (5:48). Depending on the financial leeway due to other framework conditions, these additional costs can also bring down a project (5:45).
The rewetting itself costs a lot of time and money and it should be considered financially separate from the construction of the Peatland PV (1:142; 5:107; 8:50; 8:52). Restoration measures are funded by the federal state and the EU (1:143). Peatland PV as land use after rewetting could create added value (8:52).
The operating times are usually 20 to 25 years for conventional open-space PV modules, but investors tend more towards 30 to 35 years, also depending on the location, according to a PV expert (5:116). Roughly speaking, it can take about five to ten years until amortisation (5:119).
The durability of the materials through sufficient corrosion protection is one of the most important critical factors for the economic feasibility of Peatland PV (9:73). Reliable and sufficient experience with chemical resistance already exists, so that service lives of 30 years, which are customary for banks, can be realised (9:76). This is important to ensure that the constructions can be used in accordance with the financing and thus to ensure economic viability. However, one expert feared that due to the many technical uncertainties, hardly any bank would be willing to finance Peatland PV as things were at the time of the interview (March 2022) (4:65).
One PV expert is critical here: They roughly estimate the additional costs for Peatland PV at 10 to 20% of the total installation. In their opinion, the conventional profit margin is not sufficient to compensate for this (7:72; 7:75). Due to the additional costs for the technical implementation of Peatland PV, the expert has strong doubts about the profitability of Peatland PV and sees the need for further incentives for the implementation of Peatland PV (7:162).
The first subsidies for Peatland PV were introduced with the Renewable Energy Sources Act 2023. Previously (at the time of the interviews), various experts had already mentioned such feed-in tariff subsidies as an incentive tool (1:21; 2:49; 4:109; 7:72; 7:169). In addition to a sufficient feed-in tariff, there are other factors relevant to the project realisation. The availability of suitable and sufficiently large sites also plays a role in the competitiveness of Peatland PV (5:58; 5:71).
In addition, the individual projects would have to cover a sufficiently large and relatively similarly structured site (5:58). For sufficient project profitability, the minimum size of an open-space PV plant is 5 to 6 ha or 5 MWp (5:68; 5:100) [
48] (p. 23). The electricity price also depends on the size of the project (5:99). Since smaller projects are unprofitable, it would be better to aim for pure rewetting of such small peatland sites instead (5:68). Increased space requirements of adapted machines and increased row spacing could pose a threat to the necessary economies of scale of Peatland PV projects (7:48).
3.4.2. Economic Profitability for the Landowner and User
Given the scarcity of land due to conflicts between a multitude of different land use interests, an innovative land use form or combination must also be economically viable and competitive. Since most peatland is currently used by drainage-based agriculture, farmers and landowners are relevant actors. According to the farmers’ representatives, the share of rented land is relatively high in MV: 60 to 70% of agricultural production takes place on rented land and only 30 to 40% on land owned by the farmers (2:22).
Possible rental income for the owner of agricultural land or the profit that a farmer can make strongly depends on the respective agricultural usage (7:57). According to the experts, landowners in MV can receive on average 200 to 300 EUR/ha rental payments if they rent out agricultural land (7:57), while farmers make profits from cultivating the land between 300 and 1000 EUR/ha with an average of about 600 EUR/ha (4:57; 4:85; 7:57). Landowners, as well as farmers, could receive much higher income by renting out their land for open-space PV, without farmers having to regularly cultivate the fields themselves (4:85). The rental payments for open-space PV range from 2000 to 4000 EUR/ha/a (2:25; 4:92; 7:55), strongly depending on the respective region, and with exceptions of less than 1000 EUR/ha/a (7:51). While rents for open-space PV in other federal states reached higher prices, in MV they would be 1500 to 2000 EUR/ha/a (7:55). In contrast, rental payments for agricultural use in MV were on average 323 EUR/ha for arable land and 178 EUR/ha for grassland in 2023 [
49]. At current electricity prices, open-space PV pays off for everyone (4:101). Ultimately, a farmer with conventional biomass production cannot compete with these revenues from open-space PV (1:21; 2:25). From the perspective of a PV project developer, the agricultural production value or soil fertility are not decisive, as long as the sites are PV-compatible (4:98).
Giving up or stopping the utilisation of sites without payment or compensation, for example, due to peatland rewetting, is not an option for landowners from a purely economic point of view (4:57). So far, rewetting of mostly privately owned peatlands has always been dependent on the willingness of landowners, and thus, just very few peatland restoration projects have been realised (1:137; 8:30). In contrast to agricultural land use and open-space PV, there is currently no revenue to be made from pure peatland protection through rewetting (1:20).
The implementation of such projects is almost always linked to compensation claims, which amount to 2000 to 3000 EUR/ha/a, according to the conservation expert (1:144). Considering the necessary scope of rewetting, long-term funding is unclear (1:137). An alternative to compensation payments is land swapping, according to the conservation expert (1:82; 1:88). However, livestock farms, in particular, depend on the sites for fodder production in agricultural use and are therefore not very interested in compensation payments (1:82). In addition, the Ministry of Finance MV’s mandate to the land administration is to maintain the value of the state’s land and to preserve the rental income (3:42). Land swaps only shift the question of compensation (3:42).
The lawyer for agricultural law concludes that economic aspects and the protection of one’s own capital are ultimately the decisive factors for farms and landowners (10:79). If these peatlands have to be withdrawn from agricultural use in the interest of climate change mitigation (10:12), then they can at least be put to other beneficial uses through the construction of Peatland PV, which can also create synergy effects (10:16). Incentives, possibly through attractive subsidies, should be created to convince landowners (10:17).
The question of to what extent one is prepared to economise nature conservation is raised by the conservation expert (1:28). For the implementation of peatland protection on a large scale across the board, a certain economic added value must ultimately be generated (1:113). Thus, should Peatland PV generate greater income than conventional grassland use, this could certainly provide an incentive for peatland conservation on sites previously destroyed by drainage (1:21; 1:135; 3:65). It is unrealistic to simply leave several hundred thousand hectares to themselves throughout Germany (3:65). In this context, Peatland PV can be considered as a viable option (3:65), next to paludiculture (6:28).
The potential uses of one and the same rewetted peatland site could even be extended beyond Peatland PV (8:75). For example, the renewable energy production of Peatland PV could be combined with the energetic utilisation of growths from rewetted peatlands. This combination of renewable energy, agricultural biomass production, and the rewetting of peatlands, called Paludi PV (8:75), is illustrated in
Figure 1.
Stakeholders, such as farmers, always need to be included at an early stage (2:103). Especially for farms that provide or need fodder, perspectives must be created, and amicable solutions must be found (2:18; 2:37; 2:103). It cannot be predicted whether Peatland PV will provide incentives for rewetting as long as certain framework conditions are not clarified (4:8; 4:10), but in the case of economic profitability of Peatland PV, a corresponding leverage potential is possible (6:29).
3.4.3. Subsidies and Incentives Affect Land Use Decisions
The economic feasibility of Peatland PV is influenced by the opportunity costs, i.e. the income forgone of the best alternative land uses, and related positive or negative incentives. Several interviewees stressed the effect of existing agricultural subsidies for drained peatlands on the one hand (1:201; 3:72; 3:75; 6:47; 6:76) and of a possible introduction of CO2 pricing for the land use sector in the future (4:57; 4:60). The expert from the agricultural ministry considers a political change regarding agricultural subsidies and emissions trading as inevitable, especially in the light of the national goal of GHG neutrality by 2045 (6:47; 6:51; 6:76; 6:79). In order to achieve the climate change mitigation goals and to make climate-friendly forms of land use such as Peatland PV more marketable, the eligibility of drainage-based land use on peatland for agricultural subsidies must be discontinued as a first step (3:72; 6:47; 6:51). Here, the fact that peatland protection is in the public interest must be considered (3:64). Especially the subsidy approach is criticised: if a subsidy for Peatland PV is introduced but at the same time agricultural payments for drainage-based agriculture are paid, this subsidy must be scaled higher than the agricultural payment (6:76). This is contradictory, inefficient, and expensive (6:76).
Next to phasing out subsidies for drainage, the inclusion of peatland emissions in an emissions trading system has been discussed. So far, carbon credits are traded only on the voluntary market (4:57). The lawyer is confident that emissions from the land use sector will also be included in the European Emissions Trading Scheme and that this industry will be treated more and more like other industries in the future (10:82). Some experts have doubts about the successful implementation of a CO2 pricing instrument that actually corresponds to an extensive internalisation of external costs (4:60), especially against the background of further strong agricultural lobby groups at federal and EU level (6:51). Furthermore, the pricing of CO2 emissions from land use requires an effective instrument for quantifying emissions (3:78; 3:81). The generation and sale of carbon credits in combination with Peatland PV could be a profitable deal for landowners. Certainly, pricing the emissions of a land use that has been practised for decades represents a considerable encroachment on property, but the need for this pricing cannot be dismissed, according to the lawyer, and the fact that something has been done in a certain way for decades is not the strongest argument (10:85).
3.4.4. Social Acceptance of Land Use Transformation
When reflecting on economic issues, experts also raise concerns about social acceptance. It is considered crucial for both rewetting and renewable energy expansion. Most people are not aware of the climate relevance of peatlands, and the discourse on their importance is not conducted accordingly (6:73). The rewetting of drained peatland sites is desirable, but abandoning the use of 1.8 million hectares of peatland in Germany is naive, according to the peatland expert (8:71). Wherever compatible with conservation goals, Peatland PV or Paludi PV can reduce the land use pressure of the renewable energy production on mineral soils (8:75). Good mineral arable soils are essential for food security and should be primarily used for agriculture (2:40; 2:63; 8:75).
According to one expert, the difference between conventional open-space PV and Peatland PV will likely have little influence on social acceptance, as people prefer to preserve cultural landscapes (4:78; 4:81). Moreover, acceptance of building over large areas with open-space PV is considered low, and not only because MV is already producing renewable energy in the range of 180 to 190% of its electricity demand (4:75). Proper communication is crucial in promoting renewable energies, even if the gradual expansion is easier to communicate than sudden massive increases (4:75).
When aiming to meet climate change mitigation goals, it is necessary to double or triple PV installations by 2030 (2:62). The PV experts approve Peatland PV’s potential to reactivate sites and expand the land potential for the PV expansion while additionally contributing to climate change mitigation (5:19; 9:20). The expert of the energy agency predicts the threat of nature conservation objections to be high but is confident in landowner acceptance and potential leverage effect (6:73).
3.4.5. SWOT Analysis on the Economic Dimension of Peatland PV
The economic dimension of Peatland PV encompasses both business and economic aspects (
Table 5). The main economic strength of Peatland PV is the continued value creation in a rewetted state, which creates opportunities for secured income from feed-in or increased rental income of landowners. The additional costs that result primarily from the technical difficulties pose a threat to the necessary bank financing and overall profitability of the project. Peatland PV as a separate land category with increased feed-in tariffs presents an opportunity to expand renewable energy supply and contribute to energy self-sufficiency, especially during times of energy crises. Landowners face legal uncertainties and economic threats, e.g., concerning inheritance tax and land value maintenance.