BEE sees tailwind for private energy transition investments

22.12.2025

Source: E & M powernews

The German Renewable Energy Federation hopes that the new Site Promotion Act and the Germany Fund will mobilize private capital for renewables and infrastructure.

This week, the German parliament passed the new Location Promotion Act (StoFöG) and the federal government approved the Germany Fund (we reported). The German Renewable Energy Federation (BEE) has classified both as positive signals for more private investment in the energy transition. According to BEE, the Site Promotion Act aims to mobilize more private and institutional capital for investments in renewable energies and the associated infrastructure.

BEE President Ursula Heinen-Esser explained that the law sends an important signal to investors. However, it is crucial that the new regulations can actually develop their potential and are not slowed down by additional bureaucratic hurdles in other phases of the decision-making and approval processes. The association sees additional impetus in connection with the Deutschlandfonds. The federal government is providing public funds and guarantees amounting to around 30 billion euros for the fund in order to trigger additional private investment.

Various laws amended

The association is positive about the planned changes to several laws, including the Capital Investment Code, the Real Estate Investment Trust Act and the Asset Investment Act. "These amendments strengthened the investment law framework and provided more legal certainty in key areas," commented BEE President Ursula Heinen-Esser. As an example, the BEE cites a uniform definition of renewable energies, which could give investors and funds planning security.

In contrast, the association is critical of the new notification, documentation and reporting obligations provided for in the Site Promotion Act. These could significantly increase the administrative burden for funds and investors. BEE is therefore calling on the German government to closely monitor the implementation of the law and to take prompt action where the association believes that investments in renewable energies are being made unnecessarily difficult.

More than half of renewables in private hands

According to Heinen-Esser, private investment plays a key role in the success of the energy transition. More than half of the installed capacity from renewable energies in Germany is in the hands of private individuals, agricultural businesses and industry. These players are dependent on reliable framework conditions as well as practicable regulations and approval processes.

Content of the Site Promotion Act

The Location Promotion Act includes extensive measures to promote economic growth and mobilize private financial resources. These include facilitating access to financing for companies, measures to strengthen the fund market and the venture capital ecosystem as well as streamlining supervisory requirements. The law also provides for sales facilitation for securities, adjustments to the tax framework and facilitation for investments in infrastructure and renewable energies.

In total, the StoFöG amends 29 laws and 13 ordinances, supplements further regulations and repeals two ordinances. At the same time, it implements several pieces of EU capital market legislation that are part of the further development of the European Savings and Investment Union. From the BEE's perspective, these steps can help to mobilize more private capital for the energy transition, provided that the implementation is designed to be investment-friendly.

The Promotion of Business Location Act (StoFöG) is available for download as a PDF.

Author: Susanne Harmsen