German government backs renewable energy loans with monster investment

[kristopher]

German government backs renewable energy loans with monster investment
Amanda H. Miller

Oct 25, 2011

The KfW banking group, backed by the German government, recently dedicated $130 billion for low-cost loans to renewable energy companies and investments.

The money is meant to cement Germany’s place at the helm of the solar and renewable energy industry.

While the country already has more installed solar capacity than any other and has established itself as the heart of the industry where innovators and manufacturers are already conglomerating, this new development is designed to encourage even greater growth in the German solar industry.

“The program does not give equity,” said Tobias Rothacher, with Germany Trade & Invest. “It gives capital. This program is there to support the renewable energy industry.”...

http://www.cleanenergyauthority.com/solar-energy-news/germany-sets-aside-130-billion-for-solar-loans-102511/

[FBaggins]

1. K&R for good news

Just think what those funds could have done for the climate if all of this wasn't just to struggle desperately for the next decade or two to tread water in GG emissions...

...but still good news.

[kristopher]

2. It will do more good in Germany than any other developed country...

Getting rid of the system built around nuclear and coal is the essential first step in moving the developed countries toward a distributed, safe and sustainable energy system. By shutting down their nuclear fleet Germany has taken the critical step of making clear their determination to scrap the system of centralized thermal generation. They were already moving away from fossil fuels faster than any other nation and though it is counter-intuitive shutting down nuclear will serve to accelerate the process, not slow it. They have a clear goal that everyone understands.

[kristopher]

3. Routine access to low interest loans is one of the major advantages..

Just for those that don't know, routine access to low interest loans is one of the major advantages that utilities have over distributed energy developers. It is a big part of the price advantage that fossil fuel plants have had over renewables. A developer looking to build a renewable project has to go to the venture capital market while utilities are able to go to the bond market where the rates are usually about 1/3 of venture capital.