The Federal Government is seeking to promote the expansion of renewable energy in Germany and worldwide. German companies have key technologies and know-how for shaping the national and global energy transition. Foreign markets offer these companies major opportunities for growth. There is fierce competition in these markets where success not only depends on technology but increasingly also on the financing options offered.
This is where the new Special Renewable Energies Initiative comes in, providing cover under the Federal Government’s export credit insurance scheme. Germany’s federal export credit guarantees (so-called ‘Hermes’ cover) provide state cover for risks, which allows for long-term financing of investments. With immediate effect, federal export credit guarantees are now available for exports in the field of renewable energy that include up to 70 per cent foreign-sourced goods or services. Usually the share of foreign-sourced goods and services is capped at 49 per cent. In future, the Federal Government will also regularly waive the advance payment requirement for local costs incurred in the target country if the policyholder so requests, thereby taking better account of increasing local content requirements in the renewable energy sector.
The measures of the Special Renewable Energies Initiative also include intensifying market cultivation activities in order to support German exporters operating in the target markets. This particular measure thus also helps to boost economic cooperation within the scope of Germany's energy partnerships with more than 20 countries.
In addition, the screening and decision-making processes for the granting of Hermes cover are being optimised in order to better support exporters at early stages of the process which are critical for the award of contracts and to provide project initiators with clear information on the financing conditions.