Financing renewable energy projects via closed-end funds―a German case study

摘要

During recent years, closed-end funds have become one of the dominant financing schemes for wind farms in Germany. Having evolved out of the traditional model of local citizen-financed wind farms ('Buergerwindpark'), closed-end wind funds can be seen as a logical consequence of the increasing professionalism and specialisation trend within the wind business as a whole. This article illustrates the basic market mechanisms behind the project development and financing approach based on closed-end funds and gives an overview on recent market developments in Germany. Finally, the transferability of this approach to other technologies or other regional markets is discussed.