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Germany’s Green Industrial Policy
The report analyzes Germany's energy transition, focusing on the solar PV and wind energy sectors. It evaluates the impact of the Renewable Energy Sources Act (EEG) and its feed-in tariffs (FiT), comparing the economic, technological, and environmental outcomes of both sectors. While wind energy is found to be more competitive and innovative with lower relative subsidy costs, the solar PV sector has faced a severe crisis due to intense competition from Chinese suppliers. The document argues for a systemic approach to green industrial policy, suggesting reforms to the FiT to increase flexibility and competitiveness while addressing grid stability and institutional fragmentation.
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Document type: Report