Part 3/8:
Higher costs affect all forms of financing. When it comes to traditional thermal power plants, such as coal and natural gas, only a fraction of the total cost is necessary upfront, with the majority attributable to the purchase of fuel over the plant's operational lifespan. In contrast, wind and solar energy require the majority—up to two-thirds—of the total costs to be paid upfront. Consequently, as financing costs soar, the economic viability of solar and wind projects collapses.