Advantages of importing German goods and services
Importers of German goods and services from the area of renewable energies obtain direct support in the form of various German government programmes, since the German government considers exports of renewable energy technologies to be particularly deserving of promotion. That is because this line of business also promotes sustainable global development. Hence the German government provides appropriate cover in the form of official export guarantees and investment guarantees. It is also possible to apply for combinations of these.
Export credits guarantees of the German federal government
Risks related to the loss of receivables German companies may incur when exporting goods and services to foreign countries are insured by the state export credit insurance – also called Hermes cover. The credit duration for projects in the area of renewable energies amounts as a rule to eighteen years. Including locally accruing expenses (for example, infrastructure expenses for wind turbines located at remote sites), up to thirty percent of the total contract value can be covered. The share of local costs may not exceed twenty-three percent of the total contract value. Orderers can avoid the risk of being unable to pay the German exporter due to the devaluation of their own currency by choosing the option of paying the German company in their own currency rather than in euro. The German federal government reserves the right to check the stability of the currency requested in each case.
Importers of German goods and services also profit from the backing of German companies by the German federal government in the form of investment guarantees. With this instrument, the federal government offers German companies investing directly abroad a safeguard against political risks. These include participating interests, investment-like loans, capital endowments for branch offices and other proprietary rights. In the case of renewable energy projects, commitments from official or officially controlled authorities can also be included in the investment guarantee, such as the construction of infrastructure or a formal guarantee of purchase prices. Guarantees can run for as long as twenty years.