> the key rate of the bank of russia is now 21 percent, and the key rate of the people's bank of china is 3.1 percent, the european central bank is 3.4 percent, us federal reserve - 5 percent. accordingly, the weighted average cost of capital (wacc) - the basic variable for calculating the economics of any investment projects - is at least 23-25% in russia, and five times less in europe. > investors, including foreign ones, who entered the electric power industry after the reform of rao ues of russia, demanded guarantees of the profitability of their investments. the investment mechanism used was the capacity supply agreement mechanism, which works well with a weighted average cost of capital of up to three percent. with a cost of capital of 15 percent, in consumer payments for the electrical capacity of new power plants, about a third was the cost of the power plant itself and two thirds was the return on investment, including bank interest. thus, out of about 2.1 trillion rubles, the return on investment and bank interest amounted to about 1.4 trillion. > it should be noted that some energy companies, primarily state-owned, used the income received to implement repair and investment programs. with a cost of capital of 25 percent, the cost of building the power plant itself in consumer payments will not exceed 20 percent. respectively, the price of new generation - even lets assume the same cost of equipment - in our country will be several times higher than in europe, the usa or china. > thus, the central banks fight against inflation leads to an increase in the cost of electricity and capacity, which, as a consequence, accelerates inflation. 10/?
Czech Republic