Renewable energy in Germany

P

paddy0007

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Hi

I am looking to invest about €50k-€75k in a solar energy project in southern Germany, it seems to be pretty water tight, given that the german equivelent of the ESB gaurantees to buy all the electricity generated, the only major variable looks to be the amount of sunshine.

Am I being a little gullible to believe this?
 
As far as I remember the German electricity supply market was privatised many years ago. That means, that what you refer to as the equivalent of ESB may be just one of many electricity suppliers. You would certainly need to find out more about this company and the actual contract to purchase certain amounts of electricity generated, that you refer to.
 
paddy0007 said:
Hi

I am looking to invest about €50k-€75k in a solar energy project in southern Germany, it seems to be pretty water tight, given that the german equivelent of the ESB gaurantees to buy all the electricity generated, the only major variable looks to be the amount of sunshine.

Am I being a little gullible to believe this?
Click to expand...


I'm not trying to sound like James Caan from Dragons den but
How much per kilowatt generated will you get paid ?
What kind of return will you get on your investment ? Will your investment have an exit strategy, i.e. can you easily get your 50-75k investment back by selling it to someone else in the future.
I think these are the questions you need to be asking. If you don't know the answers to these questions, don't invest.

paddy0007 said:
the only major variable looks to be the amount of sunshine.
Click to expand...

I differ with you here, there are a lot of other variables here, like the ones I have mentioned and others
 
Price of oil doesn't matter, its a20yr contract where utility companies must buy all the power you generate at a fixed price (40cent per kWh I think), plus sunshine is not really a variable over the long term(10year+). Its pretty constant at x W/m^2/year in the same areas.

colm..
 
Revenue will be price*quantity. Do you know what the expected wind levels are in turbines in which you are investing. Afaik, 40% output would be high in Ireland, and there are better wind levels in Ireland compared to Germany. Location is key in such projects.

As previous posters pointed out you will need info to be able to assess your counterparty risk and exit mechanism(s).
 
Quote:

Revenue will be price*quantity. Do you know what the expected wind levels are in turbines in which you are investing. Afaik, 40% output would be high in Ireland, and there are better wind levels in Ireland compared to Germany. Location is key in such projects.

Asker,
It's not wind its solar PV i think.
Colm..
 
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Hi All

Quintas Energy who are a wealth management company based in cork are doing something similar in spain(www.quintas.ie)It is only after year 12 that you will see a return on your investment, 11% return.
 
Thanks guys,
Really appreciate all the feedback and certain issues that you have flagged, I am gathering lots of information from different sources and hopefully going to get a good overview of the process over the next week or so.

I will let you know how I am getting on.

Thanks

p
 
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