Renewable Power Subsidies

Germany's Green Industrial Policy: Stable Policies - Turbulent Markets.

This report focuses on the wind and solar PV sectors in Germany. It reviews German policy in support of raising the share of renewables in the energy mix within the context of multiple social, economic and technological objectives. Based on this analysis, the report concludes that the extent to which policies have achieved their green industrial goals at reasonable cost is mixed. Wind energy seems to perform better against all policy objectives, while the solar PV sector has come under intense pressure from international competition.

The report highlights a number of implications for future policy design. Among these are the need to adopt a systemic perspective of green industrial policy, which—in addition to better calibrating instruments like the feed-in tariff—also addresses the challenges of institutional fragmentation, interacting policy schemes and transformative alliances. Furthermore, the report emphasizes the potential offered by learning from policy practice in emerging economies.

Research Type: 
This article is part of the series Green Industrial Policy.