IEA says cost of capital for solar remains high in Southeast Asia

The International Energy Agency (IEA) says the cost of capital for solar remains higher in Southeast Asian countries than it does in other emerging and developing economies.Reducing the cost of capital is critical to unlocking further solar investment in southeast Asia, according to analysis by the IEA. The cost of capital represents the minimum rate of return required by equity investors and debt holders to invest in a project, with a higher percentage signalling that an investor will require a higher return rate due to actual and perceived risks, making projects more expensive to finance. The ...

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