CAGR Methodology

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Compound annual growth rate methodology for long-horizon rate trends.

Definition

CAGR (Compound Annual Growth Rate) measures the geometric mean annual growth of electricity rates over a specified period.

Steps

  1. Select start point near target years ago (e.g. 25y).
  2. Select end point (most recent).
  3. CAGR = (end/start)^(1/years) - 1.

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