Impact on levelised cost of electricity for newly commissioned renewable power capacity in Europe by level of financing costs, 2015-2020

Sources

IEA analysis based on technology capital costs from IRENA (2020).

Notes

Figures are indicative estimates (expressed in real terms). Upper limits of the columns show the levelized cost of electricity (LCOE) using a standard weighted average cost of capital (WACC) representing average market risk (8% in advanced economies and 7% in developing economies). The length of the column illustrates how much the LCOE of the technology in the specific region has dropped as a result of reduced financing costs. Capital costs are based on commissioning dates and the terms of the WACC are based on financial close.