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

27 Pages Posted: 29 Jun 2009

See all articles by Ole Langniss

Ole Langniss

German Institute for Economic Research (DIW Berlin)

Jochen Diekmann

affiliation not provided to SSRN

Ulrike Lehr

affiliation not provided to SSRN

Date Written: October 1, 2008

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

Suggested Citation

Langniss, Ole and Diekmann, Jochen and Lehr, Ulrike, Advanced Mechanisms for the Promotion of Renewable Energy: Models for the Future Evolution of the German Renewable Energy Act (October 1, 2008). DIW Berlin Discussion Paper No. 826, Available at SSRN: https://ssrn.com/abstract=1425532 or http://dx.doi.org/10.2139/ssrn.1425532

Ole Langniss (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Jochen Diekmann

affiliation not provided to SSRN ( email )

Ulrike Lehr

affiliation not provided to SSRN

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