Germany: Prime Capital to Raise USD 750 Million for Renewable Energy Investment

Prime Capital AG plans to raise EUR 600 million (USD 750 million)to invest in European renewable energy projects, the Bloomberg informs.

It will raise the capital from pension funds and insurance companies and use it to finance 400MW of plants which are already operational or on their way to grid connection.

The investment will go through a unit created for the project, Prime Renewables GmbH, with an offer to investors for stable returns for 25 years. Also, it may invest in transmission networks and energy storage projects.

Considering that the European countries are currently struggling with increasing debts and economic stagnation, while trying to reach higher level of energy self-sufficiency, many of them are searching for solutions to invest pension and insurance capital into the renewables sector.

Consequently, the UK is looking how to bring those funds into the industry, as the Danish and Dutch retirement funds have been invested in offshore wind projects.

(1 Euro = 1.2643 U.S. dollars)

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Offshore WIND staff, June 11, 2012; Image: RWE