The European debt crisis represents a “dramatic barrier” to financing for clean-energy projects, according to German state-owned lender KfW Group.
Access to long-term financing has become more difficult as banks struggle to raise capital on the market, KfW Chief Executive Officer Ulrich Schroeder said today at a conference in Berlin.
“We need a healthy banking system” to fund large-scale renewable energy projects such as offshore wind farms that take years to develop and can cost in excess of 1 billion euros ($1.4 billion), he said.
KfW, named the world’s safest bank by Global Finance magazine in August, last year provided 25.3 billion euros for renewable energy and energy-efficiency projects worldwide, Schroeder said. KfW intends to boost clean energy financing “each year by 10 percent,” he said.
German turbine makers including Siemens AG and Nordex SE, as well as producers of solar photovoltaic equipment such as Q-Cells SE and Solarworld AG, have previously benefited from KfW lending.