Regulatory hurdles in store for Belgium's renewables industry
Published on 9th Feb 2017
Osborne Clarke are proud sponsors of inspiratia’s riskWatch which assesses the risk of investing in renewables energy projects in the most active markets globally. Please see below an extract from inspiratia’s latest report on the renewables market in Belgium.
After a mixed year for Belgian renewables in 2016, the country’s riskWatch score has dropped marginally to 76.37% from 78.6%, with a negative outlook for the next 12 months owing to uncertain prospects for greenfield projects in some sectors. The year ahead also holds potential changes to offshore wind incentives, as well as continued fallout from the quashing of an onshore wind decree in Wallonia.
Belgium entered 2017 fresh off the back of the financing of two new greenfield offshore wind projects, namely the 370MW Norther and the 309MW Rentel wind farms, which are now being built in the North Sea. The former reached financial close in December 2016, becoming the first project to finance an 8MW turbine in the process, while the Rentel deal was concluded back in October. Both transactions broke new ground on the aggressive pricing of commercial debt, dipping as low as Euribor + 185bp, according to market sources.
Belgium hands some of the responsibilities for supporting renewable energy projects to its three regions, namely the Brussels-Capital Region, Wallonia and Flanders. While the system provides autonomy for each area to support its own renewables developments, it can create issues around forming a joined-up approach to satisfying aspirations set at national level, such as the EU’s 2020 renewable energy consumption targets.
So what are the policy and regulation, project drivers, macroeconomics and politics driving change in Belgium? Please contact one of Osborne Clarke’s experts below to request a full copy of the inspiratia report.
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