A sustainable reduction in the cost of capital for renewable energy projects will take a multi-pronged approach, which could herald a range of broader changes to institutional investor/asset manager relations across a range of timescales. The most effective catalyst will depend on the market.

Europe’s policy and finance environment has enabled some of the fastest deployments of renewable assets globally. In 2016, it became the first region in the world to surpass 100GW of solar PV capacity, with 140GW of wind power installed.

This report examines the availability of capital for renewable energy, the cost-effectiveness of different mixes of capital and investors used in meeting Germany’s medium and long-term deployment goals, and the potential impact of policies on this mix of investment.