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Germany looks at tripling of renewable power output while banks resume financing solar projects

Jan 28, 2009 - Síle Mc Mahon - Market Watch

German flagGermany has set a goal to triple its generation of power from renewable energy sources from the current rate of 15.1% to 47% by 2020, according to a Reuters report today.

Dietmar Schuetz, President of the German Renewable Energy Federation (BEE) anticipates that the renewable energy sector could provide 278TWh of electricity in 2020, compared to 93TWh in 2008, as long as there is a favourable political climate for the industry.

"Energy from wind, biomass, hydro, solar and geothermal sources will be the overriding element of our power supply,” said Mr. Schuetz. "We will be turning power production upside down. Conventional power plants will complement the supply only on request. Fuel imports and carbon dioxide emissions will be cut."

Andreas Haenel, Phoenix Solar

This news was complemented by a report from Barclays Capital Solar that hinted at a loosening of purse strings on the part of German banks. The report cited Phoenix Solar’s CEO Dr. Andreas Hänel’s (pictured) comments in an interview published by Bloomberg today that suggested that German banks are resuming offering financing for solar plants.

Phoenix Solar has entered discussions with several German banks and large lenders to obtain funding for its future plans. The company has claimed that not only have the banks resumed lending, but they have also reviewed the size of installation for which they will grant loans and will now provide funding for plants up to 1MW. These plants can cost around €3 million, 75% of which would be externally financed.

The company anticipates declines in solar ASPs of as much as 15%, and sees Germany, France, Belgium, Italy and Greece as the market leaders for the year to come. France and Greece appear to be the location of choice for larger installations, according to the report.