Rising Costs’ Impact on Renewable Power Generation

Payne Institute Program Manager Brad Handler and student researcher Mason Shandy write about how the inflationary pressures that have gripped the global economy over the last 18 months, along with central banks’ efforts to lessen them, are weighing on the economics of building new power generation. Despite recent evidence of some moderation in these inflationary pressures, it is reasonable to expect that they will persist for some time.  These higher costs disproportionately impact development of variable renewable energy (VRE), such as wind and solar, and in emerging market (EM) economies.  June 27, 2023.