Even if financing is available, the transaction costs per megaw att are much higher for smaller projects because many of the same financing and development steps must be followed regardless of facility size. Furthermore, as the IPCC (2011) discusses, this smaller project scale may lead to disproportionately higher transaction costs and lower gross returns (although the rates of returns may still be well w'ithin attractive market standards). Beside the small size of many companies entering the renew'ables market, banks and investors are reluctant to support projects also because of the lack of institutional track record.8 Therefore, big incumbent companies with proven track record (RWE or E.ON, for instance) will have a clear advantage over new small firms and households entering the market.