> Basically this is a problem because a bunch of existing incumbents are probably going to go bankrupt, or at least have to write down a lot of capital equipment and invest in new technologies.

That's not how it works. In Germany, the government subsidizes farmers to put up Windfarms, then forces the electric companies to buy the electricity at an inflated price, which those companies charge their customers for. As a result, energy prices in Germany are almost doubled for citizens, whereas companies get to have exemptions, of course.

Then they need to sell surplus energy for negative money when production is too high and import (often nuclear) energy from neighboring countries when it's too low. While they did get rid of most (domestic) nuclear energy, essentially the same amount of fossil fuel is still required to maintain the baseline.

It's utter nonsense, but the Germans get to pat themselves on the back for being so green. Well, except for all that coal energy that also needs subsidies because of those poor coal workers...