Our research on the UK being able to meet its fourth and fifth carbon budgets without the need for new nuclear, but only if renewables policy is urgently ramped up, was featured in Current News.
The research shows renewables could effectively curtail the need for new nuclear, at least immediately. But Ben Hall, head of new business at Cornwall Insight, said this could only occur with a significant ramp up of renewables policy.
“Despite the falling costs of solar PV, onshore and offshore wind and other low-carbon technologies, deployment may still need some form of support above and beyond the power markets. Captured wholesale prices for renewable projects will fall relative to baseload prices, leading to lower revenues because of what is commonly termed power price cannibalisation.
From our modelling it is also evident that the combination of Capacity Market de-rating factors for renewables and projected clearing prices – even if they rise – is not going to be enough to encourage significant new-build merchant renewables,Ben Hall, Head of New Business