The State of Hesse wants to facilitate access to bank financing for renewable energy by amending the rules for state guarantees.
Under Hesse’s state guarantee programme, guarantees can be applied for to support projects which are highly valuable to the state’s economy as a whole (“volkswirtschaftlich besonders gerechtfertigte Vorhaben”). This requirement shall now also be met for investments in biomass, biogas, geothermal energy as well as wind, solar and hydro power.
Beneficiaries shall mainly be small and medium-sized companies from the energy sector. Large companies can, however, also apply. The guarantees shall be provided for up to 70% of the loan at the maximum. Besides, the project has to comply with state aid regulations. Individual guarantees shall not be outside the range of EUR 5 million to EUR 25 million.
The renewable energy project shall contribute significantly to improving the energy balance of the state of Hesse, and to its targets of a sustainable energy supply and climate protection. All projects benefitting Hesse shall be elegible in principle. However, the companies have to be tax residents of the state, with the management also being located in Hesse, and shall provide energy from renewable energy sources for consumers within the state.
Source: Hessisches Ministerium der Finanzen (State Ministry of Finance of Hesse)