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

Ole Langniß, Jochen Diekmann and Ulrike Lehr

No 826, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

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.

Keywords: Regulation; Renewable Energy; Promotion; Policy Design; Feed-In Tariff; Minimum Price Standards (search for similar items in EconPapers)
Pages: 23 p.
Date: 2008
New Economics Papers: this item is included in nep-ene and nep-env
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Citations: View citations in EconPapers (3)

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Journal Article: Advanced mechanisms for the promotion of renewable energy--Models for the future evolution of the German Renewable Energy Act (2009)
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