Executive Summary

In this special report, we look at the potential impacts of inflation and interest rate rises on renewable energy owners, operators and investors in Europe.
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Challenges for companies in the renewable energy sector include how to cope with rising costs of raw materials, energy and transport, which make it more expensive to build new projects. These challenges will be exacerbated by ongoing problems in the renewable energy supply chain caused by the Covid-19 pandemic; and rises in costs of borrowing as central banks seek to raise interest rates to curb inflation.
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We consider how these emerging financial threats will affect firms in the renewables industry, and share views on which companies will be winners and losers in this new environment. We also share insights on how companies can mitigate their risks.