The Cost Of Financing For Renewable Power

The cost of capital (CoC) for renewables matters. The CoC is a major determinant of the total price to purchasers of electricity from renewable power generation technologies. If assumptions used for the CoC are not accurate – over time, between countries or technologies – then the cost of electricity might be significantly misrepresented and result in poor policy making.

A comprehensive database on renewable energy financing. This IRENA report presents new CoC data, obtained from an expert survey and interviews covering all major world regions for onshore
wind, offshore wind and solar photovoltaic (PV). The coverage of this survey – both in terms of geography and technology – is believed to be among the most wide-ranging of any existing
database on renewable energy financing.

Material differences exist in the CoC across countries and technologies. The weighted average CoC obtained through a survey of experts in 45 countries varied from as little as 1.1% (onshore wind in Germany) to above 10% (solar PV in Ukraine), all in nominal terms, for the period 2019-2021.