This suggests that in absence of technological progress and productivity gains, RES may not be a new source of growth for Germany because of its cost. The final impact on growth will also depend on the price developments in the energy sectors as well as on the net effect of the “merit order effect" and of the EEG surcharge on electricity prices. With growing demand of foreign markets for RES technologies, maintaining a first-mover advantage and a technology leadership would ensure Germany will reap the benefits of its investment in RES.