The worldwide photovoltaic market is rapidly growing, more than 60GWp are expected in the year 2016. The growth is however outside Europe. Especially development and newly industrializing countries offer promising opportunities for German companies. Photovoltaic systems are technically mature and economically competitive with electricity productions costs as low as 5 to 7 cents€ / kWh. The German Solar Industry Association (BSW) together with the Agentur für Wirtschaft & Entwicklung invited key players from the banking sector and industry to meet and discuss to develop financing instruments for small and medium scale solar projects.
Representatives from the banking sector DEUTSCHE BANK, ALLIANZ, KfW DEG, KfW, IFC, EULER HERMES met with the BSW, IBC SOLAR and RAACH SOLAR to discuss new ways on how to fill the gap below large scale commercial financing of renewable energy projects in developing and newly industrialized countries. “If we see that the large majority of photovoltaic systems in Europe are financed by banks, why there are no banks in Europe and Africa who finance these small and medium sized projects in Africa” said Mr. Jürgen Raach. “We want to harvest the monthly payments for fossil fuels and convert them into monthly down payments for loans for photovoltaic systems” he added.