Corporate clean energy appetite marred by red tape and returns worries

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
A significant share of Polish, German and Spanish corporates did not feel informed about renewable options (Credit: Seagul / Pixabay)

Companies could spearhead a global shift to clean energy if industries and governments worked to lower red tape and costs associated with investments, according to BayWa r.e.

A survey commissioned by the Germany-based developer found bureaucracy and cumbersome regulations are seen as a major deterrent to corporate renewable purchases in the UK, Germany, France, Italy, Spain and Poland.

The 1,200 corporate respondents polled for BayWa r.e. shared an overwhelming belief in the business, reputational and hiring advantages of investing in renewables. However, a significant share – between 20% and 49%, depending on country – were deterred by long payback times, investment costs and supply security concerns.

The figures, BayWa r.e. argued, show there is an “obvious” need for renewable players to better communicate the financial and supply benefits of the solutions they offer, such as the cost-shaving potential of battery systems.

Corporate solar PPA surge fuels zero-subsidy comeback

The survey, released as BayWa r.e. and thousands of others gather at Intersolar Europe in Munich, emerges as corporate enthusiasm mounts for the solar PPA route.

For PV, the boom in these arrangements – from 1.21GW (2017) to 5.66GW (2018), according to BNEF – has unlocked revenue streams where others closed when subsidies were phased out. As PV Tech has documented, the market entails tough negotiations but is slowly taking off in Spain, Portugal, Italy, the UK, the Netherlands and others.

BayWa r.e.’s poll shows solar is more popular (75% of surveyed corporates plan to invest) than wind (50%) but faces, together with all other renewables, low awareness issues: a significant share of Polish (34%), German (30%) and Spanish (27%) respondents claimed not to feel informed about the clean energy options available to them.

In Spain’s case, BayWa ventured, the gap may be explained by the country’s history of energy taxes and regulatory penalties. The negative experience of corporates may take “some time” to wear off despite Spain’s most recent efforts to revert some of the measures, the firm said.

Read Next

August 4, 2021
Israeli independent power producer Enlight Renewable Energy has secured a deal to acquire a portfolio of solar projects in Spain with a combined capacity of 490MWdc.
PV Tech Premium
August 4, 2021
The latest installment of PV Tech’s special feature on Europe’s solar renaissance rounds-up the rest of the continent’s key markets, examining the key drivers behind solar growth in Portugal, France and the UK, amongst others.
PV Tech Premium
August 3, 2021
This installment of PV Tech’s European solar special uncovers the emerging markets of Europe’s PV sector, including Poland, Denmark and Greece.
August 2, 2021
The amount of solar installed in the US in 2020 was 4000% higher than was installed in 2010, with 8,894MW of utility-scale solar projects being added, as corporate demand becomes almost on par with utilities
PV Tech Premium
August 2, 2021
In today’s installment of PV Tech’s ‘European solar under the spotlight’ feature, we assess the potential and key drivers behind Europe’s leading markets in Germany, Spain and the Netherlands.
PV Tech Premium
July 30, 2021
Not only will solar be the dominant source of new power generation in Europe by 2025, cementing its position as the third largest market for solar globally, but the continent has placed the asset class at the very heart of its COVID-19 recovery strategy. As part of a week-long special report on PV Tech Premium, Liam Stoker, Edith Hancock and Jules Scully explore the drivers for solar in Europe, the key markets and the challenges that remain.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK