CRA Insights

Capital impact of COVID-19 on electric power sector – Beyond reading tea leaves

September 10, 2020

The electric power sector is capital intensive and cost of capital is an important driver behind viability of projects for the industry. The COVID-19 pandemic is causing a major economic contraction and creating uncertainty that has the potential to significantly impact cost and availability of financing to the sector, particularly in higher risk segments.

In this Insights, we discuss the various financing mechanisms employed by the sector, provide a summary of historical economic and capital market trends, and explore how COVID-19 may impact the financing costs for the sector.

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