Michael Kohn, Head of Global Project Finance at BayWa r.e., has pointed out the discrepancy between political goals for accelerating the energy transition and reality in a conversation with the press. He emphasized that the construction of new wind and solar power plants, even under optimal conditions, often takes years. Particularly, the approval processes for wind turbines are complex and protracted, leading to delays in many cases. These challenges are not limited to Germany but are observed in many countries.
The Federal Government has set the ambitious goal of covering 80 percent of Germany's electricity consumption with renewable energies by 2030. However, experts from the energy sector and consulting firms like Deloitte emphasize that this would require a drastic increase in annual investments in the energy transition—from 22 billion to 100 billion euros.
Kohn pointed out that authorities are already operating at their capacity limits and that a rapid acceleration in the pace of processing permits is unrealistic due to staff shortages. Additionally, objections and lawsuits from residents further complicate the approval process, which can delay the realization of projects.
Another major obstacle to the faster expansion of renewable energy is grid connection. Often, there are bottlenecks in the availability of grid connection capacities, and projects receive connection points that are far away from the actual location.
Despite These Challenges, Financing Renewable Energy Plants in Germany Is Simpler in International Comparison. In Contrast to Abroad, Where Extensive External Consulting Is Necessary, Project Assessment in Germany Is Often Conducted Internally by the Banks. This Simplifies and Accelerates the Process Significantly.
"BayWa r.e., originally part of the BayWa Group active in agricultural trade, is a leading company in the planning and construction of wind and solar parks, and has generated a revenue of nearly 6.5 billion euros in 2022. Despite the tense market situation, characterized by high inflation, high interest and investment costs, as well as uncertainties in the supply chains, the industry in Germany remains on a growth course. Kohn expressed confidence for the future, based on a well-stocked project pipeline."
