Analysis of the Success of Feed-in Tariff for Renewable Energy Promotion Mechanism in the EU: Lessons from Germany and Spain

Directive 2009/28/CE establishes the obligation for the EU to reach a share of renewable energies on energetic consumption of 20% in 2020. Likewise, European regulation fixes different promotion mechanisms for the various production technologies. Member states have freedom to choose the mechanism that can be best in their individual case.In this paper, we analyze the main characteristics and the results of the promotion mechanisms of renewable energy used in the two European countries leaders in terms of installed capacity and production of renewable energy (Germany and Spain). This research paper can serve as the basis for the design of regulation in other countries given that it highlights the main advantages of a feed-in tariff system. We acknowledge financial support received from Xunta de Galicia through SEC100020PR.