ABSTRACT

The rate of diffusion for renewable power technologies is a central issue given the urgency of problems such as climate change and oil depletion. In Germany, renewable power technologies – especially wind turbines and solar cells – have spread particularly fast, so Germany has become a worldwide leader in this area. This was due to a regulatory framework put in place by the German parliament in several steps. The first feed-in law seemed destined just to induce the installation of a few hundred megawatts of small hydro plants and a modest number of wind turbines. In fact, it developed far beyond those expectations and set in motion a virtuous circle in which more and more elements of a true framework for transition fell into place, leading to visions of establishing an all-renewables power system some time during the second half of the 21st century. When total costs to society are considered, the costs of this transition are surprisingly modest. It is almost surprising how much political effort has to be invested to bring about such a change. But then this is not just a question of appropriate policy design but of overcoming vested interests and established modes of thinking about energy.