Energy market liberalization and the emergence of new energy ventures in Germany

This paper investigates how energy market liberalization and the policies supporting renewable energy integration have influenced the emergence of new energy ventures in Germany. A wide range of policies is examined, including the Energy Industry Act (EnWG), the Renewable Energy Sources Act (EEG), the Buildings Energy Act (GEG), and several others that have shaped the sector. The analysis is organized around the electricity value chain by considering upstream, midstream, and downstream segments and traces policy impacts on venture creation through data and case studies. The findings suggest a noticeable trend between regulatory measures and the development of innovative business models. Importantly, the study highlights that technological advancement alone is not sufficient; policy support, financial incentives, and market access mechanisms are critical drivers of both entrepreneurial activity and new venture emergence. The study provides practical insights for policymakers internationally, particularly in countries in the Global South that have yet to undergo energy market liberalization. • Analysis over 25 years suggests a positive association between German energy policies and the emergence of new ventures. • New entrepreneurial ventures are observed to be highly concentrated in downstream, customer-centric market segments. • The findings indicate that key growth areas currently center on BESS, heat pumps, and smart energy management solutions. • The market adoption of available technologies appears to be heavily reliant on policy incentives that influence consumer behavior.