Germany seems to be looking for new financial sources to push its solar power market to the next level.
Germany has approached investors in Saudi Arabia for investment in the farmer’s solar power market. The investors are being promised 15% return on the capital invested. Germany is possibly the most mature solar power market in the world and, even with some saturation, remains highly attractive.
Germany needs fresh investment into its solar power market as it plans to phase out is nuclear power capacity over the next few years. The European solar power giant also needs new innovations in the solar power domain as the German market seems a bit saturated with current technology.
New and upcoming solar power, storage, and smart grid technologies would require significant investment. Thus, scouting potential investors makes perfect sense.
This would not be the first instance when companies from the Middle East have shown interest in European renewable energy projects. Masdar, from the United Arab Emirates (UAE), invested in three concentrated solar power (CSP) projects in Spain. Masdar has committed to invest £525 million in Dudgeon offshore wind farm in the United Kingdom. It also invested in the London Array offshore wind energy project.
Saudi Arabia’s ACWA Power has expanded its footprint in the solar power domain in several African countries. The company will set up solar thermal power projects in Morocco and South Africa. ACWA Power recently won the right to develop a 100 MW photovoltaic (PV) power project in the United Arab Emirates (UAE) at the lowest-ever tariff.
As European countries plan to move towards clean energy sources and away from nuclear energy (at least in some countries) and fossil fuels, they will require significant investment in the next-generation renewable energy technology. With the ever-present volatile geopolitical situation. vis-a-vis Russia, Europe needs new partners in the energy domain, especially with a target to achieve energy independence.
Germany will also help develop solar power projects in Saudi Arabia. German companies will develop two solar power projects for state-owned oil company Saudi Aramco and a solar-powered desalination project.
Image Credit: Germany solar panels & flag via Shutterstock
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