Berlin, 16th of March 2006 – Coming in the wake of a major Government energy strategy summit, planned by the office of Chancellor Angela Merkel, leading international investment banks and finance experts gathered for the first large-scale international renewable energy finance forum in the German capital. “Traditional cost and risk analysis is still tailored towards the finance and utility industries. By taking also the cost and substantial risk to the consumer into account, renewables offer a very potent energy option. In the longer term they are also a better and safe deal for the consumer”, said Jonathan Johns, Head of the Ernst & Young Renewable Energy Unit, at the Renewable Energy Finance Forum.
Dresdner Bank underpinned the case for renewable energy investments from an insurance risk perspective: ‘Climate Change is real and has severe implications on insurance cost. In 2005 the recorded losses due to natural catastrophes for the insurance industry amounted to 60 billion euros. Hurricane Katrina caused about 20 billion euros of insured losses. Essentially the only way to tackle climate change is to convert today’s fossil fuel economies into low-carbon economies”, said Dr. Sandhövel, Head Carbon Risk at Dresdner Bank and the Allianz Climate Core Group.
The International Energy Agency estimates the global investments in cleaner energy at present at about 20 billion US$ per year, most of which are allocated to solar and wind power. Within the next decade this amount is likely to grow to about 100 billion US$ annually.
“Just by taking these concrete cost and risk factors into account, there are no sensible alternatives to renewables. Since the year 2000 the U.S. Wellhead natural gas prices increased by 400% and prices of other fossil fuels are also rising while the prices for renewables are falling. Clean energy sources such as wind or solar don’t rely on fossil fuels and they are therefore less volatile”, said Peter Ahmels, President of the German Wind Energy Association.
Georg Wilhelm Adamowitsch, State Secretary of the federal Ministry of Technology and Economics said at the international investment forum: “The expansion of renewable energy technologies is a strategic imperative as it contributes to the security of supply of the largest European economy. I am certain that by 2020 we will generate 20% of the total electricity from renewable energy sources. In combination with robust energy saving policies we are reducing our dependence from fuel and energy imports.” The Renewable Energy Finance Forum (REFF) in the Berlin Hilton Hotel, from 13-14th of March, took place at a crucial time for the future of European energy security and in a buoyant climate of growth for clean energy technologies worldwide.
