Effects of Government Interventions in Alternative Renewable Energy Markets: A Comparative Case Study of the Wind Power Market Regulation in Germany and Brazil

This research paper aims to analyse the effects of government interventions in alternative renewable energy markets, focusing on the regulation of wind power markets. The research method is based on a comparative case study between the policy design and respective instruments applied by highly industrialized and emerging industrializing country economies to promote and develop such markets. Germany and Brazil were taken as the representatives to illustrate the policy strategies and implementation choices in the contexts of highly industrialized and emerging industrializing country economies, respectively. The basic hypothesis underlying this work is that in spite of the similarities that may exist among the energy policies objectives, such as security of supply and import dependence reduction, there will be also particularities derived from the particular national needs, priorities and values. The specific approaches adopted by German and Brazil enable the reflection upon lessons that may be shared in regard to the development of infant industries, such as the wind power market. In this sense, the findings point out that the success of alternative renewable energy policies are influenced by special factors like: i)- government commitment to the policy stability; ii)- effective and continuous investments on R&D; iii)- integration of the energy policy with the industrial and scientific-technologic policies; iv)- awareness regarding the dynamic and evolutionary nature of the policy instruments; and v)- freedom to put into practice innovative and experimental policy instruments as part of the learning process towards national social and economic development.