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WACC for Swiss electricity grids and renewable energies

How high should the financing cost rate for electricity grids and renewables be in future?

Client

Bundesamt für Energie (BFE)

Project period

2023 – 2024

Related expertise

Regulation, Valuation, Energy, Data Science

Team

Urs Trinkner, Tobias Binz, Romain de Luze, Leah Meyer, Elena Zarkovic, Michael Altorfer

Contact

Urs Trinkner

Project description

Grid operators in the Swiss electricity market are remunerated via cost-regulated grid utilization fees. The Electricity Supply Ordinance (StromVV) stipulates that a weighted average cost of capital (WACC) must be applied to the assets of the grid operators required for operation. As part of this project, Swiss Economics is analysing the current methodology for calculating the WACC and developing recommendations for the further development of the StromVV.

Methods

  • Analysing the effects of different WACC methods
  • Analyses of the peer group of electricity grid operators
  • Analyses of the capital structure
  • Differentiation of the WACC for renewables
  • Comparison with stakeholders
  • Recommendations for taking the findings into account in the regulation

Publications

 

 

 

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