Uncertainty and opportunity loom for renewables sector — report

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“The renewable energy sector is at risk,” says Ben Warren, EY Global Power & Utilities Corporate Finance Leader. But the focus on costs in the solar and wind sectors is “paying dividends,” he adds, pointing to recent data from Bloomberg New Energy Finance (BNEF) that shows that the benchmark global levelized cost of electricity (LCOE) had dropped by 18% year on year for both solar and onshore wind at the beginning of 2018, to $70/MWh and $55/MWh, respectively.

Yet Warren sees dark clouds on the horizon, noting the troubling possibility that India could apply a tariff of 70% on imports of PV modules, as well as the impact that Washington’s 30% levy on imported solar cells and panels could have on U.S. jobs in the PV sector. And rising interest rates are also threatening to squeeze sources of affordable capital for solar and wind developers. “Financiers are anticipating tougher times for developers looking to fund their projects,” he says.

Read the full article on pv magazine Global.

By Brian Publicover

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