This report presents the main results of the survey and in-depth interviews conducted between September 2019 and April 2020 in all the EU Members States and the United Kingdom. The interviewees partners were mainly RE project developers, bankers, financial experts and other RE related stakeholders.
Through the survey and interviews, data on relevant financing variables of concrete RE projects in Europe was collected. In particular, the variables asked were: Weighted Average Cost of Capital (WACC), its components Cost of Debt and Cost of Equity (CoD and CoE), the Debt to Equity Ratio, the Loan Tenor, and the Debt Service Coverage Ratio (DSCR). The report presents the main figures for these variables and it also raises discussions on the main reasons explaining the observed trends.
The report is completed by two quantitative exercises on the field. On the one side, an econometric analysis that investigates factors driving the WACC. These factors are derived from literature. On the other side, a cash flow model that calculates the effects of the different financing conditions on bid levels and supportJust like administratively set support, auction-allocated su... costs.
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