According to recent global reports, Germany is not among the world leaders in the development of renewable energy, behind countries such as the United States, China, Brazil and India in terms of absolute installed capacity added. However, Germany has been considered a leader in specific renewable energy sectors. For example, it has been at the forefront of wind energy installations, both onshore and offshore, and has made significant values in solar photovoltaics and Investment of renewable energy in Germany

Germany has a strong agricultural sector that plays a crucial role in the country’s economy.

Investment of renewable energy in Germany has been a key focus area for the country’s transition to a low-carbon economy.

With vast and diverse natural resources, this country prefers to develop solar power plants and large wind farms as the most technologically advanced and affordable sources of green energy. New geothermal technologies are also actively developed and researched here.

No wonder that Germany has also a large bioenergy sector, including biomass, biogas, and biofuel production.

This sector has created investment opportunities in areas such as biomass sourcing, biogas plant operations, and biofuel manufacturing.

Germany has implemented various incentives to support the growth of renewables. The Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, EEG) guarantees feed-in tariffs for renewable energy producers, providing long-term investment security. The government has also set targets for the share of renewable energy in the total energy mix, aiming for 65% by 2030 and 80% by 2050.

The growth in the Investment of renewable energy in Germany has led to the creation of thousands jobs. According to the Federal Ministry for Economic Affairs and Energy, the renewable energy industry employed around 290,000 people in 2020. These jobs span across various segments of the sector, including manufacturing of electrical equipment and components, engineering, installation, operation and maintenance services.

Renewable energy has not only reduced its reliance on fossil fuels but has also positioned Germany as one of European leaders in clean energy and sustainable technologies.

The ongoing transition to renewable energy has attracted large investments, driven capital-intensive innovation, and contributed to the country’s efforts to combat climate change.

Investment of renewable energy in Germany

Country’s total renewable energy production has increased from less than 100 TWh in 2009 to 256 TWh in 2022, and this figure continues to grow. Recent geopolitical changes have given a powerful impetus to the RES development, requiring to reduce dependence on imported hydrocarbons.

Investment of renewable energy in Germany is growing mainly in solar and wind power sectors, which form the backbone of the energy security and sustainability of Europe’s largest economy.

Germany has been a global leader in renewable energy adoption and investment for a long time.

CP Finance UK supports the development of modern energy projects throughout Europe, including Germany.

We offer financing for the construction and modernization of solar power plants, wind farms, hydroelectric power plants and geothermal projects.

We are ready to facilitate obtaining long-term bank financing and attract a large investment loan from private investors for your ambitious plans.

Contact us to find out more.

Wind energy sector development in Germany

Germany has historically utilized a very effective and flexible feed-in tariff system to incentivize investment in RES sector, including wind power. Under the EEG, wind energy producers receive guaranteed payments for the electricity they generate. The feed-in tariffs are set based on various factors such as project size, location, and technology.

The country has invested heavily in the construction of offshore wind farms in the North and Baltic Seas. At the end of 2022, Germany’s offshore wind park had over 1,500 turbines with a total installed capacity of over 8 GW. Previously, German government has set a target of installing 20 GW of offshore wind capacity by 2030 as part of its efforts to achieve an energy transition.

With around 30,000 wind turbines across the country, both offshore and onshore, Germany is one of the European leaders in wind power investment.

It is a significant contributor to country’s RES mix.

The Federal Network Agency (Bundesnetzagentur, BNetzA) reported that by the end of 2020, the onshore wind capacity in Germany was approximately 54 GW.

There are tens of thousands of wind turbines all over the country, especially in the flat regions with rich wind resources in northern Germany.

For example, Lower Saxony (Niedersachsen) is considered the largest onshore wind power region in Germany. It has a diverse landscape that includes flat areas, hills, and coastal regions, making it favorable for wind energy production. The region has a very high concentration of onshore wind turbines, particularly in areas such as Aurich, Emden, and Wilhelmshaven.

Some of the largest wind farms in Germany with their installed capacities:

• BARD Offshore 1 Wind Farm. BARD Offshore 1, situated in the North Sea, was one of the first commercial-scale offshore wind farms in Germany. It has an installed capacity of 400 MW, consisting of 80 wind turbines. The wind farm began operations in 2013.

• Alpha Ventus Offshore Wind Farm. Alpha Ventus in the North Sea was Germany’s first offshore wind farm. It has an installed capacity of 60 MW, generated by 12 wind turbines. The wind farm was commissioned in 2009 and serves as a test field for new technologies.

• EnBW Hohe See and Albatros wind farms. These offshore facilities consist of 87 wind turbines, which are located in the North Sea close to each other and about 100 kilometers from the coast. With a total installed capacity of 640 MW, both power plants generate 2.5 billion kWh of energy annually, enough to power more than 700,000 German households.

• Amrumbank West Offshore Wind Farm. Situated in the North Sea, Amrumbank West Offshore Wind Farm has an installed capacity of 302 MW. It consists of 80 wind turbines and is operated by E.ON. The wind farm began operations in 2015.

• Gode Wind 1 & 2 Offshore Wind Farms. Located in the North Sea, Gode Wind 1 and Gode Wind 2 are adjacent offshore wind farms. Gode Wind 1 has an installed capacity of 330 MW, while Gode Wind 2 has a capacity of 252 MW.

Germany has transitioned to an auction-based system for allocating wind energy projects.

Since 2017, offshore and onshore wind projects are awarded through competitive auctions. This shift has led to cost reductions in the sector and increased efficiency in project development.

Germany has also been focusing on repowering, which involves replacing old wind turbines with newer and more efficient ones. Repowering investment projects contribute to increasing the overall capacity and optimizing the energy output of wind farms. By repowering existing sites, country aims to maximize the potential of wind energy resources in several years.

As the wind energy sector expands, Germany faces challenges in integrating renewable energy into the grid effectively.

The country is investing in grid infrastructure upgrades, energy storage solutions, and demand-response mechanisms to manage the variability of wind energy generation.

Thanks to huge investment of renewable energy in Germany and government support, Germany has become a global leader in wind energy technology and has successfully exported its expertise and technology to other countries.

Local companies are involved in manufacturing wind turbines, components, and providing consulting services for wind energy projects worldwide.

Germany is home to prominent companies that manufacture turbines and wind power equipment. Below we have listed several major wind energy equipment manufacturers based in Germany.

• Siemens Gamesa Renewable Energy. Siemens Gamesa is a leading global provider of wind turbines and related services. The company manufactures onshore and offshore wind turbines ranging from 2 to 15 MW. Siemens Gamesa has a significant presence in the wind energy market and is involved in projects around the world.

• Enercon GmbH. Enercon is a company specializing in the production of onshore wind turbines. It offers a range of turbine models, including direct-drive and gearless turbines. Enercon is known for its innovative technology and has a substantial market share in Germany and internationally.

• Nordex Group. Nordex is a global wind turbine manufacturer headquartered in Germany. The company produces onshore wind turbines with capacities ranging from 2.4 to 6.0 MW. Nordex has a strong presence in Europe and other international markets and offers a comprehensive range of wind energy solutions.

• Senvion SE. Senvion is a large wind turbine manufacturer that provides onshore and offshore wind turbines. The company offers a wide range of turbine models suitable for various wind conditions and project sizes. Senvion focuses on technological advancements and has a strong presence in the global wind energy market.

Germany continues to invest in research and development to enhance wind energy technologies.

Advancements in turbine design, improved efficiency, and grid integration solutions are among the most important ongoing research areas. Innovations such as floating offshore wind turbines and hybrid renewable energy systems are being explored to expand the potential of wind energy.

For example, Leibniz University Hannover hosts the Institute of Turbomachinery and Fluid Dynamics, which conducts research on wind turbine aerodynamics, rotor blade design, and wind energy system optimization. The TUM Department of Mechanical Engineering has a dedicated Wind Energy Research Group that conducts research in turbine aerodynamics, control systems, and wind farm optimization.

RWTH Aachen University, University of Stuttgart, and University of Oldenburg are also actively engaged in research and development in the field of wind energy.

Investment in geothermal power, biomass, and other renewables

Although these energy alternatives account for a relatively small share of total renewable energy investments, German companies and scientific institutions are developing these areas as an important underpinning to photovoltaics and wind energy.

Tidal energy:
Germany has been exploring the potential of tidal energy, primarily in the North Sea and Baltic Sea. Tidal power involves capturing the energy from ocean tides and converting it into electricity using turbines. Several small experimental and commercial tidal energy investment projects are under development, with the aim of tapping into the country’s coastal resources.

Waste-to-energy technologies:
Germany has a powerful waste-to-energy sector (WtE), which involves the conversion of municipal solid waste and industrial waste into electricity and heat. Waste incineration plants equipped with energy recovery systems play a crucial role in country’s renewable energy production.

Solar thermal energy:
Solar thermal energy harnesses the sun’s heat to generate hot water, space heating, and process heat. Solar thermal systems, such as solar water heaters and solar district heating, are deployed across Germany, but investment in this technology is relatively low.

Geothermal energy:
Germany has limited geothermal resources compared to other countries, but it has been steadily investing its geothermal sector. Geothermal energy utilizes heat from beneath the Earth’s surface for electricity generation and heating. The focus in Germany is on the so-called deep geothermal energy, which involves drilling deep wells to access hot water or steam. Several geothermal power plants and district heating systems are currently in operation.

Biomass:
Biomass plays a vital role in renewable energy mix, especially in agricultural regions. It involves the use of organic materials, such as wood pellets, agricultural residues, and energy crops, to produce heat, electricity, and biofuels. Biomass power plants and combined heat and power (CHP) systems are deployed across the country. In 2021, biomass accounted for up to 8% of Germany’s total electricity generation.

If you are interested in the development of a new investment project in the field of renewable energy, our company is ready to assist your business at all stages.

We offer long-term financing for the construction of power plants and energy infrastructure in Germany, as well as provide a full range of professional management, engineering and financial consulting services.

Contact the CP Finance UK for more information.

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Commercial energy production using solar concentrators is becoming an energy priority for countries with high levels of solar insolation, including Spain, Morocco, UAE, USA, Mexico and others. Solar thermal power plants (STPP) energy is gaining worldwide recognition as one of the leading innovative technologies aimed at transitioning from fossil fuels to clean renewable sources of electricity and heat.

Solar thermal power plants (STPP) construction remains a balancing technique for socio-economic developments and environmental stability.

Thanks to government assistance in the form of high tariffs for electricity generated and tax deductions, STPPs have become profitable systems that guarantee an acceptable level of profitability for investors.

CP Finance UK offers comprehensive services in the field of financing, construction and modernization of STPPS, providing customized technical solutions to companies in many countries.

Our team, together with partners from Spain and other European countries, is also ready to offer you financing and construction of solar projects on favorable terms.

Types of solar thermal power plants

Photovoltaic and solar thermal technology are two main ways to use solar energy for commercial purposes.

The rest of the technologies, which may have a promising future, are still considered largely experimental. About ten solar thermal technologies have gone beyond research and have already become the basis for large STPPs with an installed capacity of up to several hundred megawatts.

A modern solar thermal power plants (STPP) are classified below:

• Hybrid STPPs combined with a gas boiler for fossil fuels.
• Hybrid STPPs combined with a solid fuel boiler for biomass.
• Hybrid STPPs using a combined cycle.
• Solar concentrators with parabolic trough and heat storage technology using inorganic salts.
• Solar thermal power plants with linear Fresnel concentrators.
• Tower solar concentrators with direct steam generation.
• Solar concentrators with parabolic troughs.

A technology based on concentrating solar energy along a pipe with a heat-conducting fluid using long parabolic troughs has been actively studied in the United States since the 1980s.

Based on this principle, the giant SEGS (Solar Energy Generating System) was built in the Mojave Desert, California.

As a result of years of operation of SEGS, researchers have accumulated tens of thousands of hours of experience to bring parabolic concentrator technology to its current state. No other technology has been studied so well. This is one of the reasons why most investors choose to build a STPP of this type, despite the well-known disadvantages and dangers (for example, the use of HTF based on aromatic hydrocarbons).

The first group of installations concentrates solar thermal energy along the line, and the second directs the rays to one point, reaching a much higher local temperature.

The first group of STPPs uses parabolic trough concentrators or Fresnel mirrors. The second group of installations, which operates with high temperatures and regulates the direction of the beams along two axes at once, uses either the central tower or Stirling engines. In the most advanced installations, thermal energy can be stored in order to convert it into electricity at the right time.

There are also hybrid solar thermal power plants that simultaneously use solar energy with fossil fuels or biomass. These engineering solutions significantly expand the list of opportunities for investors.

Solar thermal power plants

Solar thermal energy with a central receiver

The central receiver (solar tower) is responsible for converting concentrated solar radiation into heat, transferring it to a coolant, which can be air, water or inorganic salts. This medium can be used directly to convert water to steam and also to increase the performance of an integrated turbine by heating the intake air before entering the combustion chamber.

If the heat transfer fluid is water, central receiving units heat and vaporize the previously introduced fluid to produce steam at a specified pressure and temperature. This steam is then expanded in a steam turbine, following the general principles of any thermal power plant.

When the power plant is operating normally, inorganic salts are stored at around 290ºC in a large insulated tank.

A vertical centrifugal pump moves the salts from the reservoir to a receiver located at the top of the tower.

The heat transfer fluid, driven by the pumps, moves from the salt reservoir to a receiver at the top of the tower, where the temperature rises to about 560–600ºC.

The liquid is stored there until it is used to generate steam.

This technology allows CSPs to provide a relatively stable generation of electricity throughout the day, regardless of the intensity of sunlight.

Among others, the advantage of solar thermal power plants offer over other solar technologies are the following:

• The use of the same heat carrier for energy generation and storage, which simplifies the system and improves the economic performance of the facility.

• High temperature of the heating medium compared to alternative technologies, which contributes to an increase in the efficiency of the steam-water cycle.

• Heat transfer fluid (molten salts) circulates through a well-defined area with higher efficiency compared to parabolic systems.

• HTF pipelines can be drained by gravity when the unit is not running, without the need to install additional pumping equipment.

A prime example of a central tower CSP is the Noor Ouarzazate CSP power plant, which has been under construction in Morocco since 2013. It is considered the largest power plant of this type on the planet, which was designed for the extreme conditions of the desert.

Solar thermal power plants for energy storage

One of the major problems of renewable energy, which uses methods that are highly dependent on weather conditions, is the difficulty of generating energy during periods of peak consumption.

Generation is carried out under favorable natural conditions, but not at the peak of consumption.

Once electrical energy enters the grid, it must be consumed immediately. Since electricity is extremely expensive to store, production and consumption should ideally coincide in time.

This problem could be solved by generating electricity under favorable conditions and consuming it when needed. This means building a “storage” of energy in one form or another.

Since the storage of electrical energy on a large scale presents a number of problems that science has not yet solved, other types of energy storage have traditionally been used, for example, pressure or temperature differences.

So, pumped storage power plants are based on storing dammed water in order to drain reservoirs and use water at the right time.

Hybrid solar-fossil fuel power generation

Today it is extremely difficult to make reliable weather forecasts and predict the generation of electricity from a solar thermal power plant.

Since the beginning of construction of the first SEGS power plants in California, the possibility of adding an auxiliary fossil fuel boiler to the solar system has been investigated.

It is difficult to store electrical energy, so energy production and consumption must coincide in time. Otherwise, there will be certain imbalances in the power grid, which can lead to power outages for enterprises and entire regions.

While some experts believe that solar thermal power plants must have a heat storage system, in practice it is too expensive for a business.

The possibility of integrating an auxiliary boiler that runs on natural gas or biomass is provided for in the current standards in Spain and several other countries. That is, it is assumed that the STPP should be independent of natural conditions. Moreover, the boilers provide the necessary heat to prevent freezing of the heat transfer fluid, which is about + 12ºC.

Hybrid power plants capable of mixing steam generated from solar collectors and from a gas turbine waste heat boiler are called ISCC (Integrated Solar Combined Cycle) power plants.

Fossil fuels have many disadvantages, but ISCC has two obvious benefits. This is a low cost of electricity generation and smooth power regulation to match the current load.

Our services include financing and lending for solar thermal power projects.

Contact our representatives to find out about our services.

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