The European Union must make it easier for institutional investors such as insurers to finance energy infrastructure in the bloc, German Economy Minister Philipp Roesler said.
There’s potential to create a “special risk classification for investments in energy infrastructure,” Roesler said today at a conference in Berlin. He’s discussed the idea with Michel Barnier, the EU’s financial services chief, he said.
The changes could form part of the EU’s Solvency II rules, which are designed to make firms in the region allocate the same capital reserves against the risks they take. The implementation of the regulations has been delayed from last year as German, British and French insurers lobby over their impact on long-term savings products.
Roesler’s proposed changes may help finance power-line projects and grid connections for offshore wind farms, he said. Institutional investors are interested in financing energy infrastructure that offers “robust” long-term returns at a time of low interest rates, he said.