This article aims to analyze the process of energy transformation in Germany and renewable energy state support as an example of a strategic and effective policy. Energy transition in Germany, which leads to replacement of conventional energy with renewable sources and increase of energy efficiency is a long-term project requiring a strong state intervention. This project is supported with European Union green energy policy giving favorable legal and institutional framework for green technologies development. The process of energy transformation in Germany started more than two decades ago and nowadays this economy benefits from growing number of new jobs and export of high-tech products. The article analyzes the concept of "green growth" in the EU, which is both determinant and the effect of energy transformation in Germany. It discusses support mechanisms and instruments for German green energy sector, transformation goals in that area, financing sources and the most important economic effects.