Financing costs and the competitiveness of renewable power

a hazy light looking over a field with wind turbines. The ground is green and the sky is a mix of purples and violets

Executive Summary Relative to fossil fuel power, renewables are sensitive to changes in the cost of capital (CoC). After decades of low financing costs, interest rates have risen sharply in developed economies post-COVID19. We investigate the implications of changing CoC on the competitiveness of renewables, with impacts differing by region. In the U.S., higher rates […]