Cost of Capital: European Renewable Energy Projects
The content of this blog is based on the findings of an EU funded DIA-CORE project (1), published on Feb 10, 2016(2).
When judging the financial viability of a renewable project within the 28 EU countries the following criteria are applied in order of importance and hence they are at the core when the cost of capital is determined in each country;
- Generic Country Risk (accounts for up to 6% difference)
- Design and reliability of the renewable support scheme (accounts for up to 2% difference)