price cannibalisation

  • Low carbon generation

    Under pressure: Price cannibalisation in the SEM

    After the publication of Project Ireland 2040 and Climate Action Plan 2019, it looks increasingly likely that renewables will be a significantly larger proportion of the generation mix. This development has and will increasingly see renewable projects look to the wholesale power market to underpin investment, a complicating factor of this...

  • Low carbon generation

    Easter weekend – a glimpse into the future for wholesale power?

    In what has previously been a rare occurrence on the GB transmission system, the minimum daytime demand dropped below night time minimum demand twice in succession over the Easter weekend, as high levels of embedded solar generation reduced the need for grid connected energy production. In this blog we look...

  • Low carbon generation

    The case for a floor price CfD

    There is much interest across the sector at the moment that ‘subsidy-free’ investment could call forward significant renewable generation capacity. We have previously cautioned that the outlook for wholesale power prices challenges these assertions. Our Wholesale Power Price Cannibalisation paper detailed how the value earned from wholesale power is going to become...

  • Commercial and market outlook

    This week’s Energy Spectrum overview | 29 May 2018

    Energy Perspective In this week’s Energy Perspective, we look ahead to this summer, a period that we believe could prove to be ground-breaking in terms of testing some long-held theories about flexible power systems. With the electricity market in rapid in transition we explore a range of emerging market phenomena...

  • Low carbon generation

    Wholesale price “cannibalisation effect” puts economics of renewables at risk

    Our research has revealed that as capacity and output from solar and windfarm projects increases in coming years, the “cannibalisation effect” is set to lower wholesale power prices to the extent that by the 2030s it could put at risk the viability of future renewables. With the withdrawal of government...

  • Commercial and market outlook

    This week’s Energy Spectrum overview | 21 May 2018

    Energy Perspective In this week’s Energy Perspective, we examine the emerging risks of increasing wholesale price cannibalisation, based on the results of our latest insight paper. We expect renewables to make up a significantly larger proportion of the generation mix in the coming years, but argue that alternative sources of...