North Rhine-Westphalia (NRW), the most populous of Germany’s sixteen states and an industrial heartland, is a particular focus of the energy transition. Despite considerable progress in expanding the use of renewable energy, NRW still lags far behind other German states.

The Growth of Renewables in Municipalities: Factors Influencing the Decentralised Energy Transition in North Rhine-Westphalia
German Economic Institute (IW)
North Rhine-Westphalia (NRW), the most populous of Germany’s sixteen states and an industrial heartland, is a particular focus of the energy transition. Despite considerable progress in expanding the use of renewable energy, NRW still lags far behind other German states.
As the municipal level has a vital role to play in the success of the energy transition, this study examines the extent to which local factors are influencing the decentralised push to extend the use of renewables. Based on data from NRW’s urban and rural municipalities between 2010 and 2020, it examines the politica l affiliationof the local administration’s leader (the mayor), its financial situation (municipal debt) and the activity of the construction industry within its boundaries. The results show that, on average, cities and other municipalities that elected a „left-wing“ mayor in the 2009/2010 local government elections expanded the use of renewable energy less than those with „conservative“ leaders. Financial difficulties in the public budget at the beginning of the period were associated with weak growth in renewables, while municipalities with brisk construction and investment activity tended to achieve more. The results provide empirical findings on the significance of the framework conditions for the energy transition at the local level.


The Growth of Renewables in Municipalities: Factors Influencing the Decentralised Energy Transition in North Rhine-Westphalia
German Economic Institute (IW)
More on the topic

Digital Product Passport - Enabler of the Circular Economy
In a circular economy, a new understanding of economic activity and an alternative approach to raw materials are required. Resources should be used for as long as possible in order to reduce both the material and energy consumption as well as the waste and ...
IW
Climate Clubs as a Lightning Rod for Tensions in Trade and Industrial Competitiveness
The Paris Agreement has established a transformative paradigm. While this transformation will create winners and losers, it now seems increasingly clear that overall, there are tremendous opportunities.
IW