Germany’s federally-owned development banking group is accelerating investments in renewable energy to the tune of more than $130 billion over the next 5 years.
The funding targets a variety of energy areas including smart grids, energy efficiency, solar and wind energy generation. In 2010, 40% of photovoltaic installations were funded by KfW Bankengruppe, the same establishment investing the $130 billion. It sounds like Germany’s already 20% of overall green energy may increase faster than many thought.
Along with wind power, solar photovoltaics (panels) have become a critical component of the energy transition in Germany, recently surpassing hydropower in the country’s energy generation. The accelerating investment is also expected to create business opportunities for solar companies in Germany.
“Made In Germany” stickers are aimed at enticing local buyers. However, Germany Trade Invest, the foreign trade and inward investment promotion agency of Germany, is encouraging foreign companies to look into the German market as they expand their renewable energy sector further.
The German renewables sector could help trigger a worldwide trend, as the German economy could achieve increasing success as a result of these investments and other economy-wide low carbon changes. Over time, the massive push for renewables in Germany just might play a significant role in how the world generates power. It’s certainly true that other countries will be watching closely, if not starting to compete for a decent share of the emerging global renewable energy market.