Cost of capital update for electricity generation, storage and DSR technologies
This report was commissioned in 2018 to help inform our cost of capital assumptions for energy generation technologies.
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The Department for Business, Energy and Industrial Strategy appointed Europe Economics to undertake this study on cost of capital and investor hurdle rates for electricity generation projects, as part of its ongoing review of the evidence base used to estimate the costs of generating electricity using different technologies. Hurdle rates from this study helped inform inputs to the BEIS Levelised Cost Model.
BEIS also appointed the Cambridge Economic Policy Associates (CEPA) to conduct an independent peer review of the Europe Economics report.