The Importance of Developing Renewable Energy in Europe

In recent years, Europe has encountered the problem of sustaining urbanization and excessive energy consumption and stopping exhaustion of available energy. With this in mind, the concept of sustainability and resilience has become important in resource management and decision-making. In this context, renewable energy plays an important role in the global energy pool. Among them, wind energy production accounts for almost half of world electricity generation (43%) [1]. Nevertheless, despite the apparent advantages, "Galewind Industry" has a number of potential drawbacks primarily related to the short life and lack of effective operation of these parts.

The core of the economic recovery in Ireland and Europe is the development of green circulation economies in areas such as renewable energy, energy efficiency, waste and water management. The Renewable Energy Directive sets a goal that Ireland will achieve 16% of the total final energy share from renewable energy sources by 2020. According to the eurobarometer survey, nine out of the ten Irish respondents said that efforts towards climate change and more efficient use of energy increased the EU economy and employment (88%, EU average 79%), clean energy We believe it will promote the transition to. Public financial support (88%, EU average 79%)

When considering energy and sustainability it is important to understand if energy is renewable. Renewable energy is defined by the US Environmental Protection Agency. "Renewable energy includes resources that can be recovered in a short period of time and that depend on fuel sources that do not decrease" (Source: US EPA). Non-renewable energy is energy that itself can recover and actually decrease in a short time. Normally it is easy to distinguish between renewable energy and nonrenewable energy, but with some exceptions, you can quickly check.

Let's say you are a developer of renewable energy (solar, wind, hydraulic) plant. You have extensive experience and achievements in the field of renewable energy. You just bought a land like Portugal. The sun shines there for over 300 days every year there. It is an ideal place to develop renewable energy plants and produce and sell energy at market prices. You can imagine the social and economic rewards of becoming a green energy producer already. You come to the bank and tell your friends that he is a bank manager, you have a wonderful project, you need cash to start it. Unfortunately, your banker 's friend said that 30% of your own funds were not enough. The subsidy disappeared. This project is considered to be dangerous and banks now require a 50/50 D / E ratio

Recently, the government has stopped subsidizing renewable energy producers. This increased the proportion necessary for the initial capital of the renewable energy development project. As emphasized in a recent BNEF article, the bank increased the initial capital / debt ratio of the new renewable energy project from 20:80 to nearly 50:50, so capital availability is a renewable energy project It became a more important issue for me. This makes fairness a very expensive source of funds due to limited availability and increased demand. 77% of previous year's financing was completed by project financing. The changing debt structure will have a major impact on the available debt capital, which will have a significant impact on the total market investment.