29 of October 2021

'The domestic financial sector will have a catalytic role in financing renewable energy'

Decarbonization efforts on a global scale reinforce the importance of the renewable energy sector in replacing fossil fuels, representing a catalyst for the development of new production chains that present financing needs for investment, treasury support and imports.


Not many areas of private investment have shown such a surprising speed of transformation in the last decade like the renewable energy sector, either in the design or development of new projects.


Due to this dynamic, a particular interest in this area of ​​business has been developing, whose visible effects include the attraction of companies of different sizes and with different needs for financial support, with the consequent generation of value for the economy, but also generating diversification opportunities for the Banks' portfolios.


In parallel, in recent years we have witnessed profound changes in the regulatory environment, in the structure of markets, in the financial instruments used, in the participating economic agents and in the formulation of strategies for this sector.


Consequently, regulatory, institutional and financial advances towards the energy transition impose new dynamics on all who depend on or are in any way related to this issue.


Given this, Millennium bim participated in the 2nd Edition of the ALER Talks organized by ALER – Lusophone Renewable Energy Association, which took place on October 14th, under the topic the "Role of National Banks in Financing the Renewable Energy Sector" .


In this talk, Millennium bim referred to the importance of reducing information asymmetries by providing content about the industry environment, namely the identification of the main players, market positioning, business segments (IPP, C&I, mini-networks, micro-generation, systems domestic solar), Logistics infrastructure, investment opportunities and medium-term sector prospects.


It also underlined that the domestic financial sector will have a catalytic role in the financing of renewable energies through the provision of financing in local currency and financing products dedicated to the market, supported by long-term relationships with its customers.

(read HERE the joint recommendations that resulted from the 2nd ALER Conversation, about what it should be and how to promote the participation of local banks in the financing and leverage of renewable energy projects).


In this perspective, Millennium bim reaffirms its objective of supporting projects of proven robustness, making available its broad portfolio of financial services to meet the needs of medium and large companies in the Portuguese-speaking market.



José Reino da Costa, Chairman of the Executive Committee - Millennium bim