According to a media report, several banking institutions have criticized the federal government’s planned energy laws. A letter addressed to Federal Economics Minister Katherina Reiche (CDU) and Federal Network Agency head Klaus Müller states that the success of the energy transition depends—in addition to solid planning—”crucially on the broad availability of financing,” according to the “Pro Energy & Climate” newsletter from the news outlet Politico.
Image: Christian Marquardt / NurPhoto via AFP
Politico further reported on Tuesday that the letter sent on Monday was signed by the financing advisory board of the German Wind Energy Association—which includes representatives from Commerzbank, Deutsche Kreditbank, GLS, LBBW, and HypoVereinsbank, as well as various savings banks and cooperative banks. Specifically, the authors criticize the fact that the new energy laws—such as the planned amendment to the Renewable Energy Sources Act (EEG) and the planned grid package—could lead to additional, unquantifiable risks regarding costs and revenues.
In particular, there are concerns that onshore wind power projects will see a deterioration in debt levels, loan terms, and risk costs, alongside rising equity requirements. According to Politico, the authors of the letter attribute this to several measures included in the federal government’s plans—including the intended cap on the active power output of the turbines.
This cap would affect not only future projects but also those that have already secured a permit and a winning bid in the tender process—and thus, as the letter states according to Politico, “a fixed basis for financial planning.”
Authors: AFP – jm/pe – Translated by Blackout news
Sources used: AFP Press Portal