Cost of capital survey shows investments in solar PV can be less risky than gas power in emerging and developing economies, though values remain high
After years of low interest rates, particularly in advanced economies, borrowing costs are now high most parts of the world aside from China. For instance, the US Federal Reserve – a global benchmark for financing costs – has increased interest rates 11 times since March 2022, reaching a target rate above five percent, compared to just over one percent in February 2022. Rising interest rates elevate financing costs, which not only impact advanced economies but also emerging and developing ones, where such costs are at least two times higher.
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