‘Greenflation’ a risk for renewable energy, but long-term viability intact
Rising prices of commodities needed for renewable energy will increase the costs of setting up new green power projects, but this will be balanced by better access to funds and economies of scale, policy advisers and an investor said. The rising costs, as well as supply chain problems for some of the commodities and goods needed for green projects, won’t be a long-term threat to the economic viability of clean energy, they told the Reuters Global Markets Forum last week. Overhead costs that will fall with economies of scale include items such as permit fees, labour costs for installations and customer acquisition costs.
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