One major reason for Germany's leading role in renewable energies is the country's Renewable Energies Act (EEG in German). The law requires energy companies to purchase power generated from renewable sources at a price that is set above the market price. For example, photovoltaic (PV) facilities coming into service in 2007 receive a "feed-in-tariff" of 38-54EURct/KWh over twenty years. This law has spawned major interest in the purchase of renewable energy products and therefore sparked a ready-made market in Germany that is well positioned for future investments.
Germany is building on its current leadership to secure its renewable energy market for the future. The country is number one worldwide in PV, wind, and biodiesel energies in both market size and sales.
The numbers bear out this claim: In 2006, the PV industry added 1,150 MWp of new capacity, increasing total PV installed capacity to 3,060 MWp. PV took in EUR3.8 of sales in 2006 and is expecting EUR15 billion in investments by 2012.
Germany is also the largest wind energy market worldwide with 20,661 MW and sales of EUR5.6 billion. Investments of up to EUR13 billion are expected by 2012. Biodiesel also generated EUR2.5 billion in sales in 2006. Its projected investment total for 2012 is EUR16 billion.
These sectors are thriving not only because of strong political conditions, but also because of Germany's highly qualified workforce, R&D through universities and scientific institutes, location in the center of an expanding European Union (EU), and the trusted "Made in Germany" label.
