Title: Private Equity to finance wind power around the world Subtitle: Conditions for a successful strategy to attract capital markets for sustainable investments in wind power also in less and non-industrialised countries Author: Dipl.-Pol. Oliver Ristau, Publizität und Consulting, Klaus-Groth-Str. 84, 20535 Hamburg, Germany, Tel.: ++49 40 386 158 22; Fax: ++49 40 386 158 23; email@example.com Purpose: To show how financial resources can be attracted for investments in wind power especially outside industrialised countries Approach: Analysis of the sources of wind power financing by comparing leading countries like Germany, Spain, Denmark an the U.S. Abstract: The success story of wind power in a country like Germany is strongly combined with the willingness of the capital market to provide a sufficient amount of financial resources for the spread of the new technology. The analyse of the sources of the invested capital shows that private equity as well as capital generated by the stock markets have a huge impact on the growth of the wind power market. In Germany about 75 per cent of the installed wind power capacity is owned by funds – that means, that one third of the whole wind power capacity is financed by private equity in the way of the German funds constructions. Another important source is the stock market. Most of the leading companies in the turbine market are quoted at the stock market. The capital to raise their production capacities to provide the growth of wind power installations worldwide was generated by that part of the capital market. That shows that the financing of wind power is attractive to private and institutional investors. According to a range of studies, reports and interviews with banks (e.g. German Ministry of Economy, Bank Sarasin of Switzerland) the interest of investors to dispose financial resources for sustainable investments is much bigger than the possibilities to do so. The conclusion of these insights is that there is investment capital waiting to be spend in sustainable projects. Return on investment-rates are in case of wind energy - because of the high technical maturity - in particular attractive for investors. This include also wind energy in less or non-industrialised countries. To use the financial resources to disseminate wind power in those countries it is necessary to provide investors with a certain amount of reliability. The degree of reliance is dependent on the current situation in the concerned countries. With the existence of the political willingness to make wind power a new source of power generation and the support of the national sections for the dissemination of wind energy one important part of these conditions can be provided. The other important part are International banks, because no private investor will finance one hundred per cent of a certain project. The German Kreditanstalt für Wiederaufbau (KfW) could be one of those. Other financial players are the World Bank and of course National Banks. Is has to be analysed which further financial player could be attracted for that purpose. Results: With a comprehensive construction of a wind power project in any country of the world private capital can be attracted. Conclusions: To be successful in generating capital to finance such projects an investment circle (e.g. a company) is to be erected that centralises the interests of investors, banks and national parties. This company is to be led on the one hand to the stock market and on the other hand to the sources of private equity in the industrialised countries. The backing of international banks is inevitable for such an incorporated body. The combination of private capital, credit capital and governmental / international resources promises success in dissemination wind power around the world. Short-CV Dipl.-Pol. Oliver Ristau, Publizität und Consulting, Germany Born 1967 in West-Germany Studies in economic and political affairs in Duisburg and Hamburg. Receiving the Degree of Diplom-Politologe (Political Science) at the University of Hamburg 1996 with the comparison of the economic, political and technical situations in Germany, Japan und the U.S. according to the dissemination of solar (photovoltaic) power. Publishing a book, that includes a modern version of that comparison1998 Working as a journalist, researcher and consultant in renewable energy, economic and financial affairs since 1995. Publishing articles and reports in German papers and magazines like Börsen-Zeitung, WirtschaftsWoche, Die Zeit and many more. Consulting companies that are dedicated to solar and wind power on their way to the German stock market and afterwards. Researching studies and articles concerning international renewable energy markets for the media, companies and institutions.
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