The Competitiveness of German Renewable Energy Sources in the Furtherance of Energy Transition Policy

This research paper aims to examine the German renewable energy support mechanisms within the framework of Energiewende and gives a critical assessment of their impact on green energy sector performance. To achieve that, the quantitative panel data analysis is conducted using pooled OLS regression as well as fixed and random effects models, where Hausman test is to reveal the adequate model. It is hereafter possible to evaluate the the impact of investments in the green energy sector and the choice of a feed-in-tariff as a support mechanism for RES-E generation and installed capacity. The outcome proves feed-in-tarrifs more efficient to promote renewables than tradable green certificates, since they showed a positive effect on the dependent variables. However, considering the constant rise of electricity prices and EEG-surcharge, the question of FID implementation in Germany remains controversial and open for debate. The hypothesis that such volumes of subsidizing the renewables resulted in a decrease in their competitiveness, which could be avoided if the quantitative regulation and market pricing was used instead, has been confirmed. Moreover, the paper attempts to identify the main structural changes in the position of RES relatively to the conventional energy resources, as well as to highlight the current trends in the market development and the main challenges in the newest stages of energy transition.