Value chain · CLM-0524
In plain terms
Every UK-specific or typical-country cost-of-capital figure found sits well below the 20% rate Frazer-Nash used, even at the top of DESNZ's published range for floating offshore wind; only a global dataset covering the riskiest countries in the world reaches as high as 20%, and only at its extreme end.
The claim as recorded
UK DESNZ's own 2025 modelled hurdle rates for comparable capital-intensive UK generation technologies range, at their central values, from 7.6% (large-scale solar PV, onshore wind) to 10.1% (floating offshore wind, one of four technologies DESNZ treats as first-of-a-kind), and DESNZ's published high sensitivity for floating offshore wind reaches 13.3% (SRC-154 PDF p.35, Table 6); Lazard's 2026 default after-tax WACC, on a nominal analysis, is 7.7% with a published sensitivity range of 4.2-10.0%; IRENA's 2023 country/technology benchmark-tool range is 2.5-25.4% real, the widest range found and the only one reaching as high as Frazer-Nash's 20%, at the extreme highest-country-risk end of a global dataset.
Evidence behind this: T3, T4
Scope and limits
No specific Ofgem RIIO allowed-return or Sizewell C RAB rate has been independently obtained here for direct comparison; DESNZ's technology-specific hurdle rates are used as the best available UK regulated/quasi-regulated proxy.
What it assumes
No assumptions are recorded against this claim.
Where it comes from
PDF p.35 Table 6 (low/medium/high): large-scale solar PV and onshore wind 6.5/7.6/8.9, fixed offshore wind 7.3/8.9/10.6, floating offshore wind 9.6/10.1/13.3; PDF p.11: "deep geothermal for power, tidal stream energy, floating offshore wind and hydrogen to power are assumed to currently reflect more nascent (FOAK) technologies". SRC-146 PDF p.8: after-tax IRR/WACC of 7.7%; PDF p.11: sensitivity row 4.2% to 10.0%. SRC-153 PDF p.203 Figure A1: real after-tax WACC 2.5% to 25.4%.
Basis: discount rate / hurdle rate / WACC, percent, by technology and geography; mixed: IRENA real after-tax, Lazard after-tax on a nominal analysis, DESNZ basis not stated on the cited page (unverified)
Related records
- Answers question
- QST-039 not published in this release
Cite this
energyaperture.com/c/clm-0524
CLM-0524, Energy Aperture, as of 2025; 2026; 2023.
Connected records
Other published records linked to this one. A list, not a judgement.
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- Also from SRC-153
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- Also from SRC-154
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