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Of the large industrial countries, Germany is clearly leading with regard to new renewable energy sources, occupying first rank in terms of installed capacity for wind energy and second for photovoltaics. This is not because of an exceptional natural resource base but because of public policy in this area, despite the fact that this policy was conducted in a lukewarm fashion until 1998. In any case, it led to a remarkable expansion of this sector. The Red-Green coalition, in office from 1998 to 2005, developed the vision of achieving 50% and more of electricity generated from renewable energy sources by 2050, a goal that seems well accepted by the public but not by the established energy interests. There seems to be a good chance that the Conservative-Social Democratic coalition, which took office in November 2005, will continue this course. (Contains 4 tables and 7 notes.)

This paper addresses the politics and economics of constructing, contesting and reducing the “socio-political space” for renewables connected to the German Renewable Energy Act (EEG). The political discourse is traced, revealing a gulf between “fit and conform” versus “stretch and transform” narratives. The former focus on short-term consumer costs, short learning periods and cost reductions from R&D rather than from market formation. The latter focus on total costs and acknowledge the need for lengthy learning periods and market formation to reduce costs. The version of the “fit and conform” narrative which recently became dominant, misrepresents the EEG surcharge, exaggerates the “burden” by ignoring external costs of fossil generation and doesn’t consider inter-generational equity issues. This reflects the defensive reactions of a politically entrenched industry caught in a process of creative destruction, appealing to political actors such as the European Commission by invoking Europe’s industrial competitiveness and (ideologically shared) technology-neutral policies. [ABSTRACT FROM AUTHOR]

Abstract: ‘Renewable electricity certificate’ trading systems that have been established to promote renewable energy in the UK are a form of neoliberal environmental governance introduced to assimilate environmental objectives with neoliberal hegemony. However, in this case, neoliberal ideological objectives have not been translated into practice since the British Renewable Obligation is not performing as efficiently as its proponents hoped. By contrast, so-called ‘Renewable Energy Feed-in Tariff’ (REFIT) systems which involve the fixing of tariffs for renewable energy by governmental intervention, are regarded as producing more efficient outcomes. The use of the REFIT system in Germany is associated with an institutional tradition that places emphasis on giving competitive opportunities to new market entrants in order to break up concentrations of market power by incumbents. [Copyright &y& Elsevier]