In-depth country study of non-financial development barriers and market analysis to develop investment strategy

August 18, 2016
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Client:  
Period:  2015


Work

This project builds on the previous results of a European renewable energy investment strategy project carried out by 3E for a clean tech investor. In the previous project, a Levelised Cost of Electricity (LCOE) and Balanced Scorecard Assessment of country risks were carried out for 17 EU member states for solar PV, onshore wind and conventional hydro technologies. The results of the study were used to determine a narrower selection of seven countries for further in-depth study. In this follow-on project, the non-financial barriers and market attractiveness of the seven pre-identified countries were investigated from two perspectives: attractiveness for greenfield development and attractiveness for operational asset acquisitions. In terms of regulatory barriers, the administration and permitting processes, grid access and connection processes, and the stability of regulatory regime now and in the future, were examined through a mix of primary and secondary research. In terms of market attractiveness, market players, size, maturity and liquidity aspects of the various national markets were examined and then corroborated with primary research, namely interviews with lenders and developers.