German energy transition should be based on competition and the use of market-based instruments – opinion

The German transition to a low-carbon and nuclear-free energy supply – dubbed the “Energiewende” – should be based on the use of market-based instruments and competition between companies and technologies, Hubertus Bardt, head of the research division at the German Economic Institute (IW), and IW Director Michael Hüther write in an opinion piece in the Frankfurter Allgemeine Zeitung. Such an approach would reduce costs and spur innovation, according to Bardt and Hüther. “The state’s purpose is not to define technological and market innovations, but rather to provide innovation-friendly regulations and adequate infrastructure,” they write. 

For background, read the factsheets How much does Germany’s energy transition cost? and From ideas to laws – how Energiewende policy is shaped.