Energy transition: Unlocking the potential of green financing 

How financing is enabling renewables in Europe’s largest economies, paving the way to a more sustainable future

The ongoing pandemic has brought the topic of transitioning to a more sustainable energy future into even sharper focus. More than ever, the energy market is in the midst of a fundamental transition that will affect how we refuel our vehicles, heat our buildings and supply electricity to our industries. There is a clear trend shifting away from fossil fuels toward cleaner power generation from renewable energy sources.

Siemens and Siemens Financial Services (SFS) have been at the forefront of enabling that energy transition, with Siemens providing technology and SFS developing tailor made financing structures for new markets and new technologies. This is showcased by our involvement in financing more than 18 gigawatts of wind and solar power plants across the globe.  

 

Two recent examples - in the midst of the pandemic - that illustrate SFS’ continued support of a sustainable future while simultaneously strengthening its relationship with strong sector sponsors were in Italy and France. In Italy, SFS, through Siemens Bank, built upon the existing green loan financing complying with the Green Loan Principles to facilitate (along with three other banks) the acquisition of two additional onshore windfarms utilizing Siemens Gamesa turbines, bringing the total onshore wind portfolio to approximately 115 megawatts.

By closing this transaction, SFS enabled its sponsor to sustainably grow its platform of wind assets in Italy which represented the fourth transaction of this kind between SFS and this key client in the country. This transaction clearly demonstrated how a strong long-term client commitment is further strengthening Europe’s renewable sector.

 

In France, SFS has been at the forefront of the country’s push into offshore wind via its recent involvement in the Fécamp offshore wind power plant. The Fécamp project not only marks the largest industrial project in the French renewable energy industry to date, but also the first such Siemens Gamesa project in the country with Siemens Gamesa receiving the firm order for the supply of wind turbines and a 15-year maintenance contract.

 

Through Siemens Bank, SFS supported Siemens Gamesa as part of a consortium of three leading French banks and over a dozen international banks, providing project finance debt. The transaction represents another high-profile instance of the continuous and long-term support SFS offers for renewable investments in Europe.

 

France and Italy, like a growing number of countries, have been revising their climate and energy policies, implementing ambitious targets for renewables and energy efficiency to support the energy transition.

Financing plays a key role in bringing large-scale ventures to life, especially when investing in capital-intensive infrastructure like wind power plants. Significant energy projects like this emphasize the critical role of well-structured financing solutions. We are proud to continue our support as a leading financer for renewables and enabler on the way to a more sustainable future. 
Siobhan Smyth, CEO of Project and Structured Debt Europe/Asia, Siemens Financial Services