The Energy Essentials Podcast from Cornwall Insight
Cornwall Insight's energy market podcast, 'The Energy Essentials Podcast', discusses a range of topics across the energy industry. Each episode considers a different aspect and are discussed by our energy market experts. Cornwall Insight are pre-eminent in energy research, analysis, consulting and intelligence. We provide research, consultancy and training to businesses across the energy value chain. Recognised as one of the top management consultancies in the energy, utilities and environmental sector by the Financial Times for two years in a row and named Knowledge Pioneer at the Norfolk Business Awards. Cornwall Insight is constantly evolving in response to new challenges and market opportunities. We have a global presence with offices in London, Dublin, Melbourne and our head office in Norwich, and are a multidisciplinary business delivering insights to customers across numerous different channels.
The Energy Essentials Podcast from Cornwall Insight
64) WACC-A-MOLE: Implications of the rising cost of capital for the fifth round of the Contracts for Difference scheme.
Soaring inflation and interest rates*, combined with supply chain issues and labour shortages, have pushed up the cost of capital and increased the costs needed to finance renewable projects. With the latest round of the Contracts for Difference (CfD) scheme now ongoing, many in the industry are concerned that administrative strike prices are set too low for projects to be financially viable given the rising capital costs.
In this podcast, Research Analyst Jamie Maule, and Senior Modeller Tom Edwards – co-authors of our insight paper WACC-A-MOLE: Implications of the rising cost of capital for the fifth round of the Contracts for Difference scheme – discuss the impacts of a high cost of capital on the UK’s renewables sector and the success of both prospective and previously commissioned projects under the CfD scheme.
*information accurate at the time of recording