Despite concerns about Germany as a business location, the market still offers excellent opportunities for investors from all over the world, particularly in the field of renewable energies. However, there are a few regulatory hurdles to navigate. “To ensure that foreign investors secure the best conditions for their investments, they should have a German partner at their side“, advises Patrick Lemcke-Braselmann, Co-CEO of aream Group SE.

Germany's economic output has fallen recently, with politicians and business organisations complaining about the country's lack of competitiveness. “The criticism is justified - but this is partly a high level complaint”, says Lemcke-Braselmann. Compared to other European countries, Germany has a high volume of incoming and outgoing capital flows. ”This dynamic movement is fuelled by strong economic performance, a stable financial system and attractive investment and financing opportunities”, says Lemcke-Braselmann. 

However, many foreign investors struggle to access these opportunities without local partners, as Germany can be a challenging terrain for them, particularly in the energy transition business area. The regulatory framework is extremely complex and represents a considerable hurdle for international investors. The Foreign Trade and Payments Ordinance (AWV) requires mandatory notification and authorisation for investments in certain sensitive sectors like renewable energies above a certain threshold. ”The review processes can act as a deterrent and make it difficult for foreign investors to invest successfully without local advice”, explains Lemcke-Braselmann.

There are also cultural and language barriers: Knowledge of local business practices, legal terminology and negotiation styles is crucial for successfully investing in the energy transition. German investment companies possess necessary knowledge to overcome these barriers and manage investments efficiently.

And finally, trust plays a key role. In Germany, cooperation with local companies is therefore strongly favoured. “Anyone who wants to enter the German energy market in the long term will find it difficult to avoid a close partnership with local experts“, concludes Lemcke-Braselmann. The offer is there: Germany has a broad base of institutional capital with great expertise in the energy transition. Domestic investors often offer competitive conditions and have an in-depth understanding of market dynamics, regulatory requirements and technological developments. “It therefore often makes more sense for foreign investors to engage in investments via German partners, who ideally master the entire value chain, rather than acting alone“, says Lemcke-Braselmann.