This data file summarizes how capital costs and CO2 prices impact different power projects, more specifically, we tabulate what power price is required, in c/kWh, to earn specific unlevered WACCs, on gas, coal, nuclear, wind, solar, hydro and hydrogen.
From conversations with investors, we suspect many wind and solar projects are being financed at lower WACCs (c5%) than conventional gas projects (at c10%). The sensitivity of wind and solar projects is also 4.5x higher.
It is interesting to think how clear CO2 prices or varying interest rates in the future might change the relative attitudes toward these technologies. You can flex the CO2 price in the model, which changes the economics accordingly.
Our key conclusions on how capital costs and CO2 prices impact different power projects economics are highlighted in the article sent out to our distribution list here.