This thesis explores the performance of green energy sector companies in a high-interest-rate environment, an increasingly relevant topic as global economies contend with rising interest rates. High interest rates influence key aspects of business operations, from capital costs and financing to profitability and investment decisions. For green energy companies, which are often capital-intensive and dependent on debt financing for expansion and innovation, this research will provide insights into how monetary policy impacts their financial health and growth potential.

The study delves into four key areas: first, financial performance, analyzing how increased borrowing costs affect green energy firms' capital structures, cost of capital, and overall profitability. Second, it evaluates investment attractiveness, examining how high-interest rates influence investor behavior and the risk-return profile of green energy investments. Third, a comparative analysis to contrast the performance of green energy companies with that of traditional energy companies to show the unique challenges and opportunities faced by the renewable sector. Lastly, the thesis will refer to strategic responses by green energy companies, identifying innovative approaches they may use to overcome financial pressures, such as cost-cutting measures, alternative financing strategies, or strategic partnerships.

Ultimately, the thesis aims to provide a comprehensive understanding of how high-interest rates impact the green energy sector and the strategies companies can employ to remain competitive, ensuring the continued growth and sustainability of renewable energy in the face of financial adversity. This research is crucial for policymakers, investors, and industry leaders as they navigate the evolving economic landscape.