NERA Managing Director Dr. Richard Hern presented on “Weighted Average Cost of Capital (WACC) Estimation for Various Technologies” at the ACER workshop on the calculation of CONE and the reliability standard that took place on Thursday, 3 December 2020. During his presentation, he discussed ACER guidelines on the WACC, key parameters for WACC estimation, cost of capital beyond the capital asset pricing model (CAPM), and key risks faced by electricity generation sources.

The ACER workshop is a follow-up to the publication of the methodology to calculate VOLL, CONE, and the reliability standard adopted by ACER pursuant to the recast Electricity Regulation. The purpose of the workshop is to steer the implementation of the methodology, for the part of CONE and reliability standard calculation, by providing case examples, highlighting challenges of the calculation process, and providing a wider perspective to the topic. The audience consisted of over 100 representatives from member states, regulatory authorities, and transmission system operators.