May 11 (SeeNews) - The potential of Romania’s green energy market, comprising solar panels, heat pumps and insulation solutions, could rise to over 30 billion euro ($32.9 billion) by 2040, of which 20 billion euro constitute a financing deficit that can be covered by banks, management consultancy McKinsey & Company Romania said.
Currently, the Romanian state is exclusively focusing on supporting the acquisition and installation of solar panels by offering subsidies worth 300 million euro under its Green House programme, while exploring additional financing options for up to 250 million under the EU’s RePowerEU programme, Mckinsey said in a press release on Tuesday.
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“To cover this financing deficit, banks have the opportunity to supply the market with new flexible financing solutions that allow clients to use green energy savings to repay their loans,” McKinsey & Company Romania said.
The average cost of installing photovoltaic (PV) panels in Romania ranges from 1,200 euro to 1,400 euro per kW and can reach 15,000 euro for large projects. However, prosumers can recover their investments in around three years through the Green House state programme, or in six years, without any state support.
The consultancy estimates that banks can cover the financing gap through customised loans, as current offers are limited to high-interest consumer loans with up to 5-year maturities, failing to cover personalised needs related to the green energy transition.
McKinsey also sees a gap in the number of successful companies that can manage the entire energy transition process for clients, from finding suitable solutions to securing financing and installing the equipment.
The consultancy’s estimation of the value of Romania’s green energy market by 2040 is based on a market of 1.1 million to 1.7 million households which could invest an average of 7,000 euro to 10,000 euro to install solar panels, heat pumps and insulation solutions.
The financing opportunity is set against the backdrop of the EU's objective to reach net-zero greenhouse gas emissions by 2050.
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