The managed retreat of German Chancellor Angela Merkel poses simultaneous opportunities and dangers for renewables in Europe’s largest economy.

After bitter losses in state elections in the large Western German states of Bavaria and Hesse in recent weeks for both Merkel’s Christian Democrats (CDU), her Bavarian allies from the Christian Social Union (CSU), and their coalition partner, the Social Democrats (SPD), Merkel on Monday said she will stand down as leader of the CDU and not run again as Chancellor in 2021.