News Article
$130 Billion For Renewable Energy: German Bank Reduces Investment Risk
Germany's federally-owned KfW banking group is facilitating renewable energy and energy efficiency investments in Germany with EUR 100 billion (over $130 billion) over the next five years. Germany is the world's largest photovoltaic market and leading wind energy generator in Europe. This boost will further decrease investment risk and accelerate the country's move to renewable energy, adding to the country's attractiveness as a business location. Germany Trade & Invest industry experts will be at this year's Solar Power International in Dallas from October 18-20 to share the latest opportunities in Germany's renewable energy industry.
"With the decision to abandon nuclear power earlier this year, it was clear that the road ahead would be challenging. But Germany is in a very promising position to be the first industrialized country to rely entirely on renewable energy," said Tobias Homann, photovoltaic industry expert at Germany Trade & Invest in Berlin.
The new KfW loans and projects target a range of energy areas, including energy efficiency, smart grids, as well as wind and solar energy generation. In 2010, 40 percent of photovoltaic installations were financed by the KfW Bankengruppe.
Solar Energy Eclipses Hydropower
Although the spotlight has recently been on wind energy, photovoltaic energy in Germany recently made headlines for surpassing hydropower in total energy generation. Photovoltaics continues to be a critical component in the energy transition, especially as grid parity is around the corner.
The implications of a grid parity market in Germany are wide reaching. As falling system prices are making solar electricity cheaper than power from the socket, this could spur homeowners to purchase rooftop systems. And with a preference among rooftop system buyers for high-quality products and local production, manufacturers located in Germany are able to market a "Made in Germany" product with a significant competitive advantage.
This grid parity market shift is expected to create business opportunities for solar companies, as new market dynamics are accelerating development of energy storage, smart grid and smart home technologies, as well as financing, leasing and utility business models.
Germany Trade & Invest recently published an overview of business opportunities in photovoltaics in Germany, available at http://www.gtai.com/pv/industry-overview
