The EUREC Secretary General and 15 other leaders of renewable energy organisations signed a joint letter to the European Commission’s Executive Vice President Timmermans and Commissioner Simson to call for a European-wide risk mitigation scheme in the upcoming reform of the Renewable Energy Directive. The scheme would allow for economies of scale to de-risk renewable heating, cooling and electricity investments across the EU; would assist in meeting the Fit for 55 Package’s climate and energy targets; and would stimulate sustainable economic growth in Europe.
As capital cost risks are currently a barrier to significant investment in renewable energy technologies across the EU, de-risking capital intensive renewable heating, cooling and electricity projects is the most optimal solution to support greater renewable energy investment. The joint letter details specific advantages of a self-replenishing European risk mitigation scheme:
- Substantial reductions in transaction costs which would significantly lower capital and total projects costs to the benefit of end consumers, investors and public authorities.
- Greater sums of private capital leverage across the EU, leading to greater volumes and larger socio-economic benefits to the single market.
- A self-replenishing fund would be continually maintained by fees from projects once they are operational.