Leaders and followers in finance mobilization for renewable energy in Germany and China.

• Identifying leaders and followers, as well as their interactions, in financing renewable energy deployment. • Detailed analysis of policy similarities and differences that shape finance mobilization. • Finance mobilization should begin with actors who are responsive to policies and willing to be patient. • Finance is easier to mobilize in environments that leverage pre-existing and strong relationships between stakeholders. • A well-designed FiT together with KfW is the key to open the door for the participation of decentralized actors in Germany. • A flawed FiT and the pick-winner strategy of CDB advances big players in China. • RPS plays a vital role in China in encouraging involvement from incumbent power generators. Access to finance is a well-recognized barrier to scaling up renewable energy. Using the case studies of Germany and China, this research explores how governments spur renewable energy deployment by examining the availability, costs, and modes of financing. It compares the major financiers, their interactions, and government policy instruments, around renewable financing in both countries. The research concludes that finance mobilization should begin with actors who are willing to be patient and who are responsive to policies. Finance is easier to mobilize when pre-existing and strong relationships between lenders and borrowers are leveraged. It concludes that a well-designed fiscal subsidy policy together with a national development bank aiming to level the playing field is the key to open the door for the participation of decentralized actors in Germany, whereas a flawed fiscal subsidy policy and the pick-winner strategy of a national development bank advances big players in China. [ABSTRACT FROM AUTHOR]