Visit windpowermonthlyevents.com for the latest on our upcoming conferences and webcasts

The impact of interest rates

While the cost of coal or gas generation is heavil influenced by fuel prices, the cost of wind power lies mainly in financing the capital investment. A wind project financed over 15 years at an interest rate of eight per cent cannot beat gas on cost. But when interest rates drop to five per cent (or the loan is over a longer period) wind gives gas a hard time. This text accompanies two graphs with the main story Back to Being a Model of Stability.

The decisive factor: While the cost of coal or gas generation is heavily influenced by fuel prices, the cost of wind power lies mainly in financing the capital investment. A wind project financed over 15 years at an interest rate of 8% (left) cannot beat gas on cost. But when interest rates drop to 5% (or the loan is over a longer period) wind gives gas a hard time (right)

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Windpower Monthly Events

Latest Jobs