BMI View: We have revised up our forecasts for non-hydro renewables power output in Germany in 2017,
on the back of strong data for the first nine months of the year. We now anticipate generation in this
segment will rise 10.5% in 2017, bringing non-hydro generation to 192.95TWh. However, we are only
cautiously optimistic about the period 2018 to 2026, forecasting average annual generation of 3.5%. While
the Energiewende (the transition to green energy) will surely continue, there are obstacles to a full, rapid
and effective rollout, not least the struggles of the CDU in forming a government after the recent election
and the significant bargaining power wielded by the FDP, a party that has sizeable reservations about the
green energy agenda.