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In this paper we present a literature review of studies that have analysed the troublesome trajectory of different renewable energy technologies (RETs) development and diffusion in different, mainly European countries. We present an overview of typical systemic problems in the development of innovation systems around RETs. We make use of the literature on innovation system failures to develop a categorisation of typical systemic problems that hamper the development and diffusion of RETs. Based on this categorisation the paper suggests several policy recommendations to overcome the systemic problems and accelerate the diffusion and implementation of RETs.