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

Author

Listed:
  • Ole Langniß
  • Jochen Diekmann
  • Ulrike Lehr

Abstract

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.

Suggested Citation

  • Ole Langniß & Jochen Diekmann & Ulrike Lehr, 2008. "Advanced Mechanisms for the Promotion of Renewable Energy: Models for the Future Evolution of the German Renewable Energy Act," Discussion Papers of DIW Berlin 826, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp826
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    References listed on IDEAS

    as
    1. Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M., 2008. "Germany's solar cell promotion: Dark clouds on the horizon," Energy Policy, Elsevier, vol. 36(11), pages 4198-4204, November.
    2. 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.
    3. 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.
    4. 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.
    5. repec:zbw:rwirep:0040 is not listed on IDEAS
    6. Green, Richard, 2006. "Electricity liberalisation in Europe--how competitive will it be?," Energy Policy, Elsevier, vol. 34(16), pages 2532-2541, November.
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    More about this item

    Keywords

    Regulation; Renewable Energy; Promotion; Policy Design; Feed-In Tariff; Minimum Price Standards;

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