price cannibalisation

  • Press Releases

    Renewable merchant finance unlikely to lead to mass capacity additions

    Merchant finance for renewables projects is unlikely to lead to mass capacity additions to the generation fleet, according to the latest insight paper from Cornwall Insight - Merchant renewables still face challenges. To gauge the market's temperature, Cornwall Insight surveyed 258 individuals across the industry on what type of merchant...

  • Press Releases

    Incidents of price cannibalisation of renewable assets on the rise

    Research from Cornwall Insight Australia shows that the growth of variable renewable energy (VRE) generation significantly impacts their captured price. In fact, in FY18, 98% of the grid-scale solar generation volumes captured prices above $50/MWh. However, this has reduced to 12% in FY21. On top of this, wind and solar...

  • Press Releases

    High wholesale prices and negative pricing events forecasted to grow

    Research from Cornwall Insight’s Benchmark Power Curve, which forecasts the power market to 2045 under different net zero scenarios, highlights volatility in the wholesale power market is set to increase. Its central case scenario predicts that the standard deviation of hourly wholesale prices could reach £41.8/MWh by 2030. In the...

  • Press Releases

    Cornwall Insight PPA Market share survey | Increased interest and competition boost market

    The Power Purchase Agreement (PPA) market for renewable assets continues to be highly competitive, according to the latest survey results from Cornwall Insight’s PPA insight service. In fact, the PPA market for renewable generation assets has seen a significant rise in the £/MWh value achieved by generators, particularly in the...

  • Media Mentions

    PV Europe | Renewable generator revenues fall due to COVID-19 lockdown

    Our research highlighting a fall in renewable generator revenues has fallen due to the effects of the COVID-19 lockdown was featured in PV Europe. Captured wholesale prices for solar PV and wind have been the lowest of all observed technologies. In April, average captured prices were £19.6/MWh and £19.5/MWh for...

  • Press Releases

    COVID-19 impacts: Surge in negative pricing

    As a consequence of COVID-19 and its effect on energy demand, wind now represents a more substantial proportion of Great Britain’s (GB) energy mix. At the same time, CCGT plant is having to respond to lower load factors. This has resulted in not only record low wholesale prices but a...

  • Press Releases

    Cornwall Insight Ireland comments on negative wholesale prices in the SEM

    On 5 April the Irish Single Electricity Market (SEM) experienced a negative day-ahead trading price for almost the whole day. The below graph shows the day-ahead market starting at -€6.0/MWh, before falling as low as -€14.5/MWh at 2:00 pm. Overall, the day saw 20 of the hourly settlement periods outturn...

  • Press Releases

    Highest offshore wind load factors recorded since 2015

    Latest research from Cornwall Insight highlights that as a result of the elevated wind speeds experienced in January onshore wind load factors averaged 42% for the month, and older offshore sites (pre-2016) reached an average of 52%. Newer (post-2016) windfarms fared much better with offshore wind farms load factors averaging...

  • Press Releases

    Cornwall Insight comments on negative wholesale prices recorded for the first time

    On 9 December the UK experienced a negative day-ahead trading price for the first time, with prices for 03:00 AM to 04:00 AM UTC delivery on the hourly day-ahead auction dropping to -£2.84/MWh. This was caused by exceptionally high wind generation in GB throughout the weekend combined with low demand...

  • Media Mentions

    Recharge | ‘Wind and solar have nothing to fear from price cannibalisation’

    Cornwall Insight's research on price cannibalisation features in a recharge article that discusses zero wholesale prices and the effects on renewables against other power sources As more variable wind and solar is added to the grid, the more wholesale market prices fall — this is known “price cannibalisation”. According to...

  • Press Releases

    A glimpse into the future of wholesale power

    Over the Easter holidays, the UK bathed in warm sunshine and as a result, the GB wholesale power market experienced a series of notable events, some that would have once been rare. High levels of embedded solar generation reduced the need for grid-connected energy production, causing the minimum daytime demand...

  • Press Releases

    Negative imbalance price phenomenon predicted to rise

    On Sunday (24th March), imbalance prices turned negative for 13 consecutive settlement periods, as low electricity demand and high levels of wind output led the System Operator to reduce generation output from a variety of wind, combined cycle gas turbines (CCGT) and biomass power stations. Negative pricing in the Balancing...