Renewables have been receiving broad government and political support in many ways. Following the lengthy discussions in the wake of the 1997 Kyoto Protocol, the European Union signed a commitment to reduce CO2 emissions by one fifth by the year 2020 compared to 1990 and to increase the ratio of renewable energy, on average, to 20 percent by 2020.
With regard to the promotion of renewables on a national level, the German government released the Renewable Energy Sources Act ("EEG") as early as 1991. According to the act, power authorities are obliged to purchase electric power produced from renewables at minimum prices set. By this, the ratio of renewables of the overall production of electric power in Germany is supposed to climb to at least 12.5 percent by the year 2010. As soon as 2007, however, this target is going to be outperformed. By the year 2020, the renewable energy industry will see investments of more than EUR 200 billions, i.e. higher investments by far than anticipated within the fossil energy supply segment. At the same time, the ratio of renewable energy of the overall German energy supply is supposed to amount to 20 percent; according to the key scenario 2006, even this target is going to be outperformed by far.
