Commerzbank's manager says interest rates involve risk for German energy transition – report

(SeeNews) – May 29, 2012 – Interest rate fluctuations may put at risk Germany's energy transition, Jan-Philipp Gillmann, head of the renewable energy financing department at Commerzbank (ETR:CBK), told German daily Die Welt.

Interest rates are currently at a historically low level but when they start rising again, capital costs for wind energy investors will increase. As their returns depend on capital costs, they may decide not to invest in wind parks, Gillmann said in an interview published today.

Currently, wind park investments provide relatively stable returns of between 7% and 10%, he said. The attractiveness differs for the various company types. While wind turbines suppliers suffer from pricing pressure, project developers take advantage of lower component prices.

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