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Advanced Mechanisms for the Promotion of Renewable Energy: Models for the Future Evolution of the German Renewable Energy Act

  • Ole Langniß
  • Jochen Diekmann
  • Ulrike Lehr

The German Renewable Energy Act (EEG) has been very successful in promoting the deployment of wind power plants and other renewable energy power generating technologies in Germany. The increasing share of EEG-power in the generation portfolio, increasing amounts of fluctuating power generation, and the growing European integration of power markets governed by competition calls for a re-design of the EEG. This article identifies increasingly important problems and describes three different options to amend the EEG without jeopardising the fast deployment of renewable energy technologies. In the "Retailer Model", it becomes the responsibility of the end-use retailers to adapt the EEG power to the actual demand of their respective customers. The "Market Mediator Model" is the primary choice when new market players are regarded as crucial for the better integration of renew-able energy and enhanced competition. The "Optional Bonus Model" relies more on functioning markets.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.89478.de/dp826.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 826.

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Length: 23 p.
Date of creation: 2008
Date of revision:
Handle: RePEc:diw:diwwpp:dp826
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  1. Claudia Kemfert, 2007. "The European electricity and climate policy—complement or substitute?," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 25(1), pages 115-130, February.
  2. Claudia Kemfert & Thure Traber, 2008. "Strommarkt: Engpässe im Netz behindern den Wettbewerb," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 75(15), pages 178-183.
  3. Claudia Kemfert & Jochen Diekmann, 2006. "Perspectives for Germany's Energy Policy," Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 2(2), pages 11-22.
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