WACC for Swiss electricity grids and renewable energies
How high should the financing cost rate for electricity grids and renewables be in future?
Bundesamt für Energie (BFE)
Project period2023 – 2024
Related expertiseRegulation, Valuation, Energy, Data Science
TeamUrs Trinkner, Tobias Binz, Romain de Luze, Leah Meyer, Elena Zarkovic, Michael Altorfer
ContactProject 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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