Supporting renewable energies. Somewhere else.

​In a nutshell:

For some time now, we have pointed to the sustainable growth of renewable energies in the emerging markets and developing economies (EMDE). Supported by numerous development aid initiatives on one hand and in the light of the constantly growing hunger for energy resources, on the other hand, renewable energies justifiably play an important role in shaping strategic policies of the EMDE countries. Meanwhile, the political will to expand renewable energies has diminished, especially in Germany. The energy policy is currently shaped by controlling the costs of the energy transition.

​One of the implemented cost controlling measures causes institutional investors from the renewable energy sector (except geothermal energy) considerable worry: the auction regime starts to be implemented in ever larger market segments, increasing planning uncertainty and reducing the rate of return on new projects. Meanwhile, however, renewable energy investments have long shed their high-risk label. Existing power plants have become an asset sold at relatively higher prices, and the market has become supply-driven.

By contrast, the EMDE countries are often shaped by natural framework conditions, which make e.g. photovoltaic projects competitive without state interventionism. Here, a competitive product meets unsatisfied demand. What causes the fiasco of projects, e.g. in Africa, is thus not the fundamental issue of profitability but the connotations that the risk profile of such investment projects carries and their reflection in the assessment of the political and currency risks.

Such risks can be effectively reduced and partially eliminated through cooperation with state aid banks. Their array of instruments ranges from granting subsidies, co-investment, loans bearing favourable interest, or access to hedging products for high-risk local currencies. In addition, they are networked with local authorities and thus create further security.

On its new free online marketplace platform for renewable energy projects, www.RENEREX.com, Rödl & Partner offers also a database featuring links to funding programmes. Registered users can search for programmes and filter them by country and technology. In addition, you can use RENEREX to quickly contact our experts about topics such as project financing and funding programmes.

In cooperation with our colleagues on the ground, we are able to develop for you optimal project financing solutions, connect you with local companies and help you tap into the growth regions of this world.

Register your renewable energy project for free at www.RENEREX.com!