Lowering the financing cost of Swiss renewable energy infrastructure: Reducing the policy risk premium and attracting new investor types

With decreasing technology cost, the financing cost of renewable energy projects becomes a key concern for scaling up investment. This project (a) quantifies the policy risk premium required by investors, (b) compares expected to realized risk for Swiss investors at home vs. abroad, and (c) investigates the role of institutional investors in reducing capital cost. Based on a unique dataset, we derive recommendations for investment-grade policies.