KfW: Fewer Financing of PV Projects, Increasing Commitments for Offshore and Considerable Demand for Energy Efficiency Loans

The latest information published by the state-owned KfW development bank for the first half of 2013 shows a considerable decline in the financing of PV projects. Commitments for offshore wind farm projects picked up after the standstill of last year, and demand for loans for energy efficiency measures increased markedly.

According to KfW, the total volume in the area of environmental financing increased from EUR 4.9 billion in the first half of 2012 to EUR 5.1 billion in the first six months of 2013. Two opposing trends could be observed, KfW pointed out. At EUR 2.2 billion, commitments for projects in the area of renewable energies showed a markedly weaker performance than in the first half of 2012 (EUR 3.8 billion), due in particular, to the decline in the financing of photovoltaic plants. On the other hand, demand for loans for energy efficiency measures developed considerable momentum, KfW said. Loans totalling EUR 2.5 billion have already been committed so far this year, compared with EUR 0.9 billion in the first half of 2012. After the standstill in 2012 new projects have been initiated by investors. Commitments in this area came to EUR 0.2 billion.

The total financing volume generated by KFW Group in the first half of 2013 amounted to EUR 31.5 billion, up from EUR 29.9 billion in the same period of 2012. The domestic promotional business accounted for most of this figure with a volume of EUR 24.3 billion (previous year EUR 21.6 billion), KFW said. The volume of commitments in environmental and climate protection programmes came to EUR 10.4 billion in the first half of 2013 and exceeded the high level recorded in the same period of 2012 (EUR 9.9 billion). Across the Group, total commitments in the area of environmental and climate protection account for 39% of all commitments.

With a consolidated profit of EUR 498 million (EUR 992 million in the same period of 2012), the income situation developed as expected in the first half of 2013, once again exceeding KfW’s sustained income potential, the bank said. Consolidated profit includes KfW’s additional efforts from the public promotional financings taken over this year (up to EUR 311 million for 2013 as a whole) for the promotional activities financed by KfW from the Energy and Climate Fund.

Source: KfW

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