1.8.2. Conclusions and Implications for Other Countries in the Renewable Energies

Germany has been very successful in increasing the share of renewable electricity over the past decade, and this has largely been achieved by effective public policy. Within the public policy mix, the feed-in system was most significant. Demand from green power customers has also started to pick up, but impact on new capacity so far has been limited. In terms of lessons learned, we conclude by proposing a number of facilitating factors that helped the policy process in Germany, followed by recommendations for designing renewable energy policies and markets. In terms of facilitating factors, we would argue that the German model has been brought about by:

• A strong central government and a political culture that is open to government intervention
• A critical mass of interest groups in favour of renewable
• A critical mass of politicians with momentum and expertise about renewable energy
• The critical role of parliament: As the German example has shown, the electric utility industry and the federal Ministry of Economics have vested interests and can typically not be expected to be driving forces behind renewable energy legislation. Rather, members of parliament have taken the initiative, recently seconded by the federal ministry of the Environment.
• Forming inter-party coalitions: The German example has shown that support for renewable energy cuts across traditional political camps.
• Careful burden sharing: As any policy measure, the feed-in system has costs and benefits. Distributing costs widely among a disperse group of people was a success factor, while over time beneficiaries have been able to create a visible lobby.
• Market liberalisation creates a window of opportunity: When the German power market was deregulated in 1998, temporary price reductions left some room for compensation of renewable generators. The changing rules of the game also led to the dissolution of existing power camps, enabling new coalitions, and weakening the homogeneity of established associations. This was particularly relevant in the policy discourse around the EEG in 2000.
• Leaving room for customer demand to play its role
• A piece of luck.