Mapping the cost of capital for wind and solar energy

In South Eastern European Member States

Published: 10/01/2017

The Pricetag project estimates the cost of capital of wind onshore and ground-based PV in Bulgaria, Croatia, Greece, Hungary, Romania and the Slovak Republic. It aims to update the estimates provided by the EU-funded DiaCore project and provides input to the policy debate on a de-risking instrument for renewable energy investments.

Over 2014-2016, the weighted average costs of capital (WACCs) have decreased for all economic investments, due to the policies of the European Central Bank and national central banks. In addition, the cost of borrowing for corporations fell by approximately 30%. Yet the WACCs for wind and PV investments have not decreased as much.

Countries can only benefit from a low weighted average cost of capital (WACC) on wind onshore and PV investments, if adequate support policies are in place. “WACC-aware” stable policy schemes have to be designed at national and European level to allow for adequate business cases and to trigger investments.
The ‘Pricetag project’ funded by the European Climate Foundation. The research was conducted by the coordinator Ecofys, eclareon, supported by Starfish Energy, and by EPU-NTUA involved as external contributor.