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Cost of capital might vary between types of project. It is becoming common in battery storage to have sites funded by private equity. And non-recourse debt is
by 7952 4y ago
Cost of capital might vary between types of project. It is becoming common in battery storage to have sites funded by private equity. And non-recourse debt is common in offshore wind.
Different sources of capital have different capabilities to assess risk. A battery storage site is easy to understand so can be funded my smaller groups. Offshore wind requires more modelling, due diligence, and technical understanding so needs the resources a bank has. And a nuclear site is too difficult for anyone but government.
Also, inflation can vary across industries. For example wind turbines could be vulnerable to high steel costs. A fast project can better predict staff costs than a slow one.