Allemagne : September 17, 2008

Renewable energy has become a remarkable success story in Germany with half of the world’s market for solar energy and the majority of global wind-turbine manufacturers & component suppliers being based in this country.

As a result, new industries have emerged consisting of specialist engineering, consultancies, manufacturing, and service providers. The new industries have invested both within Europe and beyond enabling German companies to profit from international trends in alternative energy.

Although positive at its surface, there are problems to overcome and risks to be managed. The biggest danger lies in the lack of action taken by German companies. Should they not move quickly in the market, they run the risk of losing their competitive edge to foreign entities. Also, medium-sized German companies are often undercapitalized. Local banks often lack international experience and do not understand the technology being used.

The biggest problem facing German renewable energy companies is a lack of vision. American companies, for example, have little difficulty in seeing their companies as global players while German companies tend to think more locally. While the domestic market can offer lucrative returns on investment, the real rewards lie in other markets such as the US, China and India.

Should German renewable energy firms not rise to the challenge, they will most likely see foreign investors taking the lead.