The Decentralization of the German Energy System

Discussion on the German Renewable Energy Act and Energy Co-ops

Abstract

In Germany, the transition from conventional energy to renewable energy was promoted by the red-green coalition which was established in 1998. The coalition passed the German renewable energy act in 2000 and it is believed to be one of the most successful laws on energy transition. This article describes the law and its subsequent influence on the decentralization of the German energy system. Not only big suppliers, but also local entities contribute to the growth of renewable energy installation. Furthermore, the transition was mainly achieved by a large number of energy cooperatives in support of the law. In this paper, the law is first described in detail and its impact is explained. This is followed by an explanation of the character of energy cooperatives in Germany and their influence on the energy system.