How do capital costs and CO2 prices impact power project economics?

This data-file looks through all of our different power models, and summarizes their sensitivity to capital costs and CO2 prices. Specifically, we tabulate what power price is require, in c/kWh, to earn specific unlevered WACCs, on gas, coal, nuclear, wind, solar 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.