Press release: The renewable energy market on the advanceDOWNLOAD
The renewable energy market and the opportunities it has brought about were the central topics of a Deloitte conference on Thursday evening. In the presence of 50 participants, Gilbert Renel, national Deloitte leader of Corporate Social Responsibility and Sustainability, explained the factors, which contributed to the growing profitability of this market:
“It has been a while now that we are experiencing a re-engineering of the energy industry, which is a result of the rising awareness of climate change and environmental issues and a consumer demand for clean energy, but can also be attributed to an increasing number of EU regulations and incentives provided by national governments.”
The presentation of Marguy Kohnen, Attachée de Gouvernement from the Luxembourg Ministry of Sustainable Development and Infrastructure, focused on EU regulations and initiatives of the Luxembourg government.
In a pilot phase of a national programme for sustainable development, the government identified 14 non-
sustainable tendencies, including climate change and the digital divide, which are opposed by a catalogue of 115 countermeasures the government defined to promote green technology, micro-finance or funds investing in renewable energies.
A panel discussion lead by David Capocci, Deloitte mergers & acquisitions partner, involving the guest speakers Paul Van Houtte, Representative of the European Investment Bank, Nadia Dziwinski, Legal and Finance Manager of Hg Capital (Luxembourg) s.àr.l and Claudio Zanini, CEO of Reinvest S.A. put investments in renewable energies, such as wind farms or solar energy (Photovoltaic), in the spotlight. The topics being discussed ranged from investment targeting, capital structuring, risks linked to these investments and expected return as well as tax structuring, to practical issues the different players were confronted with when investing into these new assets classes.
According to the panel experts, mainly geographical conditions and governmental incentives determine the choice of location for building up a wind park or a solar power plant. The project developer capability remains key, as renewable projects are often complex projects requiring substantial management skills to deliver solutions on time.
Being a pioneer with longtime experience in the renewable energy practice, Luxembourg does not only offer
adequate governmental incentives, but also provides with tailor-made regulated and non-regulated investment vehicles (SIF and SOPARFI).
For an investment into a renewable energy project to be successful, professional advice is essential, the
panelists concluded: Luxembourg should continue focusing on strengthening skills and competence in specific niches based on the expertise on the structuring of funds (tax structuring, financing structuring and legal advice)
Nick Tabone, Deloitte audit partner, closed the session by summarising what differentiates renewable energy assets from other asset classes, and outlining how Deloitte may assist clients in structuring these investments and in valuing these particular assets.