Renewable energies defy uncertain environment: project financing continues to grow

03/26/2025

Renewable energies defy uncertain environment: project financing continues to grow

Is the boom in solar and wind energy over? This question is being asked not only in Germany by more and more people. Immediately after taking office, Donald Trump introduced a radical change of course in US climate and environmental policy with several decrees in order to be able to extract more oil and gas. In Germany, too, the industry is facing challenges, especially due to rising costs.

Nevertheless, the financing for renewable energies at DZ BANK continues to grow. Last year, the total portfolio value rose by €564 million to €7.9 billion. At €5.8 billion, the largest share of this is attributable to Germany. Wind farms account for the largest share at 84 percent, while photovoltaic systems account for 16 percent. To a lesser extent, our portfolio also includes energy generation from biomass and gas, hydropower and geothermal energy. Currently, business development is significantly better than the public debate would suggest.

Looking ahead over the next few years, our experts expect that there will be a stronger focus on new technologies, such as projects involving battery storage. In particular, the financing of combinations of such storage systems with renewable energy plants is on the rise. “Storage solutions will play a central role in the stability of the electricity system and the power grid in the future,” says Wolfgang Meyer, head of department in the Structured Finance (SFI) division. ”We are currently seeing increasing demand for large-scale battery storage in Germany, while the development of a hydrogen economy is making only slow progress, partly for cost reasons.”

Wolfgang Meyer is critical of the expiry of the Renewable Energy Sources Act (EEG) at the end of 2026, which, among other things, regulates feed-in tariffs. Without the previous EEG framework conditions, financing will become more difficult. In mid-2024, the Federal Ministry for Economic Affairs presented various options for the “electricity market design of the future” and a possible successor to EEG funding. “The new electricity market design must be well thought out and prepared. A reliable and cost-efficient investment framework is particularly important,” says Meyer, adding: ”In our view, affordable energy is at the top of the agenda in the current coalition negotiations.”

The image is a visual representation of data concerning the respective shares of project financing in renewable energies across different countries worldwide. The image is divided into two main sections:

1. **Pie Chart Section (Germany vs. Foreign Countries):**
- **Germany:**
- Represented as 2/5 share (or 38.54%).
- Indicating funds allocated by Germany towards project financing in renewable energies.
- **Other Countries:**
- Represented as 3/5 share.
- Accounts for financing received from countries outside of Germany.

2. **Bar Graph Section (Project Financing in Foreign Countries in Percent):**
- **Great Britain:**
- Holds the largest share at 28.0%.
- **Netherlands:**
- Invested 15.1%.
- **Canada:**
- Accounts for 12.7%.
- **France:**
- Contributed 10.5%.
- **USA:**
- Shares consist of 10.4%.
- **Austria:**
- Involvement is at 7.9%.
- **Turkey:**
- Allocates 7.9%.
- **Others:**
- Contributed 7.5%.

The background of the image includes illustrations of wind turbines, emphasizing the theme of renewable energy. The predominant color scheme is blue and orange, which helps categorize data effectively. Overall, the image presents a snapshot of global investment distribution in renewable energy projects across several prominent nations.

The image contains a visual representation of renewable energy projects financed in Germany in 2024. It shows numerical and graphical data about:

- **Wind Farms**:
- A total of **64 wind farms** financed.
- Representing **76%** of the projects.
- Illustrated with icons of wind turbines.

- **Photovoltaic Farms**:
- A total of **9 photovoltaic farms** financed.
- Representing **24%** of the projects.
- Illustrated with icons of solar panels and sun.

The image uses a gradient background transitioning from dark blue at the bottom to a lighter shade at the top, providing contrast to the text and icons. The percentages are highlighted in orange boxes, making them stand out for emphasis.

Overall, the image provides a clear, visual breakdown of the renewable energy initiatives in Germany for the year 2024, focusing on wind and photovoltaic farms.

The image is a graphical representation highlighting DZ Bank's achievements in financing projects related to onshore wind turbines.

### Detailed Components:

1. **Title:**
- **Onshore wind turbines:** This section indicates the primary focus of the data being displayed, which is onshore wind energy projects.
- **DZ BANK:** It mentions the name of the financial institution associated with the project financing.
- **One of the most successful project financiers:** Provides a statement of success in the project financing sector, specifically related to onshore wind turbines.

2. **Rankings and Specifics:**
- **Spec 1 Germany:** Represented by an orange circle indicating that DZ BANK is ranked number 1 in Germany for successfully financing onshore wind turbine projects.
- **Spec 5 Europe:** Shown with a dark navy circle to detail a ranking of 5 within Europe for similar project financing.
- **"measured by transaction volume according to infrastructure rankings"** implies the rankings are based on transaction volume, a key metric in financing projects.

3. **Visual Elements:**
- **Wind turbines:** A series of white, minimalistic wind turbine silhouettes at the bottom of the image represent the focus on renewable wind energy sourcing.
- **Orange mountain or hill shape:** Designs a landscape motif that could symbolize energy flowing in an organic fashion or reference the terrain where such turbines might be stationed.
- **Sun icon:** Positioned to the right, possibly suggesting daytime operation or representing solar energy in conjunction with wind energy.

4. **Background Colors and Shape:**
- **Gradient Background:** The blue to light blue gradient gives a sense of sky, nature, or environmental mood.
- **To the bottom right, credit is given to "www.dzbank.de,” identifying the source or related entity.

This infographic serves as a promotional content piece underscoring DZ Bank’s involvement and success in onshore wind turbine project financing. The design elements align with sustainable themes typically found in renewable energy promotion.**

Our international portfolio saw a stronger boost in 2024. Although it accounts for the smaller share at 2.1 billion euros, it has grown by a good 12 percent. It comprises around 55 project companies, mainly for large-scale solar, wind and geothermal plants. Larger projects are being seen in the US, UK, Canada and Australia. Despite the headwinds in the industry, a strong expansion of offshore wind energy can be seen throughout Europe – significant financing is planned in particular in France, the Netherlands and Poland.

Our colleague Moritz Keller from SFP in New York is also observing the technological trends around battery storage on the international market. “Several battery storage projects have been launched recently. Our latest financing in this area is a 300-MW battery storage park in Hagersville, Canada.” Carbon capture projects, a process that prevents carbon dioxide from entering the atmosphere, are also becoming increasingly interesting. The expansion of transmission lines, particularly in Australia, is also on the rise. With regard to developments in the US, our expert does not expect a slump in the renewable energy business. “It is possible that the new Trump administration will slow down the financing and approval of projects for the time being,” says Keller. The infrastructure for sustainable solutions has been expanded enormously in recent decades, so that investments in new plants in the US, Germany and Europe are irreversible.