Renewable energies: Studies
September 2021– The industry experts at Hamburg Commercial Bank are looking forward to the Husum Wind trade fair. Not only because it will be held live again for the first time, but also because wind energy is on the verge of a promising comeback after a period in the doldrums.
Renewable energies: Study on the future of Power Purchase Agreements
For some time now, Power Purchase Agreements, or PPAs for short, have been considered one of the beacons of hope in the renewable energy market. This involves large energy consumers, such as industrial companies, concluding long-term direct purchase agreements with producers of green electricity generated using wind or solar power. However, like so much else, the PPA business stalled in 2020. The coronavirus crisis had a noticeable impact on the PPA market on both the supply and demand sides.
Despite the current challenges, the long-term outlook for PPAs remains positive, as Hamburg Commercial Bank's updated study “Corporate PPAs: Green electricity for corporate consumers” shows. The trend toward green electricity continues unabated and is stable. Companies are increasingly turning to renewable energies to meet their electricity needs. They are also seeking to optimize their carbon footprint. At the same time, the PPA market needs in-depth knowledge of buyers, operators and especially financing in order to be able to assess supply obligations and requirements as well as risk positions, as these issues have a significant impact on the deal structure. Hamburg Commercial Bank has an impressive track record and in-depth knowledge in this area. We have been advisors, sparring partners and door-openers for developers and investors in the renewable energy sector for a quarter of a century.
Study: The role of banks in the success of the energy transition
Climate change is real. This year’s devastating floods in Germany and forest fires throughout Europe have given us a disturbing reminder of how vulnerable we are even on our own doorstep. But the success of the great energy transition and climate transformation will take not only determination, but at least as much capital. Financial institutions such as Hamburg Commercial Bank, which has been financing and promoting renewable energies in Europe for more than two decades, play a crucial role here. Lending and investments are becoming important steering instruments used by institutional investors to influence the efforts of the economy; heading towards more climate protection and generally towards respecting all environmental, social and governance (ESG) concerns, which define sustainable business in all dimensions.
At Hamburg Commercial Bank, sustainable infrastructure and renewable energies now account for almost 20 percent of the total loan portfolio. This ratio currently means a place in the top 10 in Germany among all banks that do not exclusively specialize in sustainability.
We will continue to increase this share. In a recent study, we examined the importance of debt capital in the energy transition and climate transformation. It is entitled “Debt capital: A building block for sustainability” (German) and provides numerous ideas on how banks, insurance companies and pension funds can become even more involved in financing sustainable energy and infrastructure projects..