Page 8 - Solar

Background to the Investment

‘It's over. Fukushima has forever changed the

way we define risk in Germany. We want to

end the use of nuclear energy and reach the

age of renewable energy as fast as possible’

Chancellor Angela Merkel May 2011

The Challenge

Sourcing green, renewable and efficient energy is

the great political, financial and environmental

challenge of the 21st century. Solar energy in
particular, has come of age since the European

Union set aggressive targets in line with its Kyoto
Protocol obligations to raise the use of renewable The Opportunity

sources to over 20% of total consumption
requirements by 2020. Over 80 countries world-wide

have responded by establishing a firm legal basis for To achieve these objectives many Governments
incentivising investment in renewable energy which have opted for Feed-in tariffs. Instead of subsidising

has created a unique opportunity that rewards the the construction costs of renewable energy
private sector while efficiently fulfilling public policy production facilities, Feed-in tariffs reward the

objectives. As a result of the recent catastrophic output of energy itself. The reward for output

events in Japan this is likely to accelerate consists of a high government guaranteed price,
considerably with the demise of nuclear power as an guaranteed growth and guaranteed demand so

acceptable alternative. Already Germany has that efficient producers can achieve an attractive
announced that it will close its 17 nuclear power financial result. The scope for greater efficiency

plants which generate one-quarter of the countries through improvements in solar panels, inverters,
electricity by 2022 and the UK has announced its transformers and management means that output

intention to tie itself to legally binding agreements can be raised further, leading to even greater
to increase its commitment to renewables to over returns for the investor and a better result for the

30% of overall consumption by 2025.
environment.

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