Financial instruments and models for energy production: investors dialogue on energy. Directorate-General for Energy (European Commission) Publications Office of the European Union, 2024.
Financial instruments and models for energy production: investors dialogue on energy [link]Paper  abstract   bibtex   
Member States will need to ramp up financing in order to meet the EU renewable energy production targets. Under the REPowerEU Plan the headline 2030 target for renewables at the EU level has increased from 40% to 45%1 to cut Europe’s energy dependency on Russian gas well before 2030. Despite renewable energy becoming more and more cost competitive in many countries, renewable energy investments face a series of barriers. Some barriers derive from sub-optimal market conditions (e.g., access to capital, cost of capital), while others from the nature of renewable investments (e.g., availability of grid connection) and from the current framework that governs the energy market (e.g., complex and long permitting process, lack of supportive regulatory framework). Current geopolitical rifts act as an additional barrier to investment and raise concerns about supply chains to further increase renewable energy capacities in the EU. Up to 80% of EU’s energy needs are dependent on imports. This is why the focus on investment policies/ financial instruments must widen to include entire RES supply chains and, ideally, support the growth of production capacities in the EU. For this to happen, a conducive investment framework, that considers fluctuating energy prices within the EU, is essential. Different clean energy production technologies have different financing needs, depending on their maturity and the barriers to investment they face. For emerging technologies, such as renewable hydrogen, availability and access to finance remain a key risk beside their inherent technology risks. Grants remain important for earlier stages of development. For mature and transition technologies, regulatory and policy risk as well as administrative barriers are key, next to grid, technology and infrastructure risks and demand side risks (off-takers). Financial instruments can address some of the barriers to investment, which slow down the decarbonisation of the EU energy sector. Through a range of instruments available at the EU and Member State level, policy makers and investors can overcome some of the obstacles making clean energy projects, particularly innovative ones, too risky for the private sector alone. The presence of non-financial barriers affecting energy production investments requires additional measures beyond financial instruments to create a truly enabling environment for energy investments.
@book{directorate-general_for_energy________________________________________european_commission_financial_2024,
	title = {Financial instruments and models for energy production: investors dialogue on energy},
	isbn = {978-92-68-10993-9},
	shorttitle = {Financial instruments and models for energy production},
	url = {https://data.europa.eu/doi/10.2833/755918},
	abstract = {Member States will need to ramp up financing in order to meet the EU renewable energy production targets. Under the REPowerEU Plan the headline 2030 target for renewables at the EU level has increased from 40\% to 45\%1 to cut Europe’s energy dependency on Russian gas well before 2030. Despite renewable energy becoming more and more cost competitive in many countries, renewable energy investments face a series of barriers. Some barriers derive from sub-optimal market conditions (e.g., access to capital, cost of capital), while others from the nature of renewable investments (e.g., availability of grid connection) and from the current framework that governs the energy market (e.g., complex and long permitting process, lack of supportive regulatory framework). Current geopolitical rifts act as an additional barrier to investment and raise concerns about supply chains to further increase renewable energy capacities in the EU. Up to 80\% of EU’s energy needs are dependent on imports. This is why the focus on investment policies/ financial instruments must widen to include entire RES supply chains and, ideally, support the growth of production capacities in the EU. For this to happen, a conducive investment framework, that considers fluctuating energy prices within the EU, is essential. Different clean energy production technologies have different financing needs, depending on their maturity and the barriers to investment they face. For emerging technologies, such as renewable hydrogen, availability and access to finance remain a key risk beside their inherent technology risks. Grants remain important for earlier stages of development. For mature and transition technologies, regulatory and policy risk as well as administrative barriers are key, next to grid, technology and infrastructure risks and demand side risks (off-takers). Financial instruments can address some of the barriers to investment, which slow down the decarbonisation of the EU energy sector. Through a range of instruments available at the EU and Member State level, policy makers and investors can overcome some of the obstacles making clean energy projects, particularly innovative ones, too risky for the private sector alone. The presence of non-financial barriers affecting energy production investments requires additional measures beyond financial instruments to create a truly enabling environment for energy investments.},
	language = {eng},
	urldate = {2024-09-19},
	publisher = {Publications Office of the European Union},
	author = {{Directorate-General for Energy
                
                        (European Commission)}},
	year = {2024},
	keywords = {EU energy policy, Energy, clean technology, energy demand, energy production, financial instrument, investment, price of energy, reduction of gas emissions, renewable energy, risk management},
}

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