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Germany considers state guarantees for renewables investments

November 21, 2022

Reuters:

Germany is examining introducing state guarantees for investments in renewable energy, Economy Minister Robert Habeck said on Monday, as Berlin attempts to become more independent in scaling up renewables capacity.

Europe's biggest economy aims to produce 80% of electricity from renewable sources by 2030 but it is heavily-dependent on imported components, mainly from Asia.

The state support could include purchase guarantees for renewable energy production, Habeck said, adding that these guarantees could somewhat overcome uncertainties regarding project permits.

"It might make sense for the state to step in with a guarantee and say 'you can order before the approval is there', then the ramp-up of the industry will be correspondingly faster," Habeck told a news conference after a summit with renewable energy representatives on the topic.

Berlin is also considering a so-called hybrid equity instrument for financing energy transformation investments, he said.

[Riham Alkousaa]

More: Germany mulls state guarantees for renewable energy production

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