An article written, by Daniel Atozri, Research Partner at Cornwall Insight featured in Energy Monitor. In the article Daniel discusses how the high volatility of wholesale prices and turbulence in the energy supply market could discourage investors looking for stable returns and cashflows.
He explained that there is a risk that this instability could lead investors to adopt a “wait and see” approach, impacting other energy sub-sectors.
While the challenges have mostly focused on the supply market, ramifications could threaten contiguous – and interconnected – parts of the value chain. This could diminish investors’ confidence in merchant financing, for example, where they fund renewable energy assets without subsidy and rely instead on the revenues those assets can earn in wholesale markets.Daniel Atzori