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@article{Hatton:2026,
author = {Hatton, L and Oluleye, G and Jansen, M and Staffell, I and Hawkes, A},
journal = {Nature Communications},
title = {High costs of capital shape the mitigation effects of renewable energy deployment globally},
year = {2026}
}
TY - JOUR
AB - High costs of capital are a major barrier to renewables deployment in low- and middle-income countries (LMICs), impeding decarbonisation despite strong renewable resources. Using grid carbon intensity trajectories, we show that LMICs have mitigation potentials over 20 times larger per project than high-income countries, even before accounting for planned fossil projects. High costs of capital increase renewable levelised costs of electricity (LCOEs) in LMICs, adding an average of US$26/MWh (solar) and US$24/MWh (onshore wind) relative to high-income financing terms. Financing costs account for up to 78% of the LCOE in LMICs, compared with 37-39% in high-income countries, restricting a large portion of global technical potential. Under a scenario consistent with the target of tripling global renewable capacity by 2030, this corresponds to additional annual costs of US$245bn (solar) and US$329bn (wind). Our results highlight the importance of reducing financing costs in LMICs for a more equitable and efficient energy transition.
AU - Hatton,L
AU - Oluleye,G
AU - Jansen,M
AU - Staffell,I
AU - Hawkes,A
PY - 2026///
SN - 2041-1723
TI - High costs of capital shape the mitigation effects of renewable energy deployment globally
T2 - Nature Communications
ER -