Make it simpler

Thinking out of the box – The cost of solar power is mainly driven by 2 factors: the cost of the investment (Capex) as well as the cost of capital and naturally not by the cost of fuel, as it is the case with fossil generation.

Technology is simple and largely commoditized. Incremental improvement and economies of scale are driving costs of equipment down. But economies are thin and we must chase costs in other components of the CAPEX, soft costs, namely development costs, by streamlining as much as possible development processes through better regulations and market practices.

Considering the financial nature of a solar asset, a slight variation in the cost of capital can have a huge impact on the cost of solar power. Cost of capital is the remuneration of risks, actual and perceived. Lowering the cost of capital requires to streamline financial process through better regulations and market practices.

The good news is that all technics and practices exist already in various fields to achieve the necessary simplification. Terrawatt Initiative is about putting these elements together and sharing them.
The other good news is that this is applicable everywhere.