Executive summary

The analysis finds that while sufficient capital exists to meet Germany's renewable energy targets, a diverse mix of investors is required to minimize costs. Key policy levers include auction design, support schemes, and long-term targets, with a critical need for electricity system flexibility to avoid increasing bid prices and managing risks associated with curtailment and negative electricity prices.

• There is sufficient capital to meet German renewable energy targets if an appropriate policy framework is established, though a diverse mix of investors is necessary to achieve these goals at the lowest cost.
• Incentive auction design significantly impacts costs; for instance, a 12-month delay in offshore development caused by gaps between auction rounds can increase bid prices by 21% or more.
• The duration and structure of revenue support affect energy costs: reducing support from 20 to 15 years could increase costs by 15-18%, while indexing support to inflation could decrease real energy costs by 18-20%.
• End users are a critical source of funding, providing over 25% of equity investment in 2015 and half of the potential equity investment for 2020.
• Current energy market design is inadequate for a renewable-dominated system and could result in zero or negative electricity prices for over 1,000 hours per year by 2030. Without flexibility measures, curtailment during negative price hours could raise onshore wind bid prices by 17% in 2020.
• Long-term targets are essential for cost reduction; halving offshore wind targets could increase the cost of energy by 6% by 2020 due to limited learning.

APA

Climate Policy Initiative (n.d.). Executive summary. https://www.climatepolicyinitiative.org/wp-content/uploads/2016/04/Overview-of-most-important-policy-issues.pdf

Chicago

Climate Policy Initiative. Executive summary. n.d. https://www.climatepolicyinitiative.org/wp-content/uploads/2016/04/Overview-of-most-important-policy-issues.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Executive summary |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2016/04/Overview-of-most-important-policy-issues.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiativendexecutive, author = {{Climate Policy Initiative}}, title = {{Executive summary}}, institution = {Climate Policy Initiative}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2016/04/Overview-of-most-important-policy-issues.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }