Comment on Solar LCOE now 29% lower than any fossil fuel option, says EY
benjhm@sopuli.xyz 6 months ago
Levelized using which interest / discount rate ? As I understand, wind-power has recently been hit by high interest rates (which is relatively worse for renewables with high capital outlay ve low running costs).
MrMakabar@slrpnk.net 6 months ago
It is a global study, so financing costs are different between countries. For example Chinas interest rate is at 10 year low right now. China also happens to be the largest market for renewables. In Europe fossil fuels are above average inflation numbers, so the high interest rate is made not that important as fossil fuels prices have risen that much faster. Indian prime interest rate is at about average right now. Japans interest rate is even negative right now.
Really it is USD which has a high interest rate right now, where it matters and it is bad.
benjhm@sopuli.xyz 6 months ago
Should be so, hope you are right (didn’t find rates in the pdf). However, these are all temporary, can change a lot on the timescale of such investment. I recall Brazil had a development bank with special rates to get around this problem, but that way is potential source of corruption. Chinese economy is also unstable. Need a risk model. Although not perfect foresight - that’s only a concept of IAMs - real investment made by people acting on promising trends then retiring.