There has been a sharp decline in British renewable generator revenues since the country’s COVID-19 lockdown began, according to new data.
Solar and wind technologies have been particularly impacted by low demand levels due to the COVID-19 lockdown, said analysis by research firm Cornwall Insight.
Solar PV captured prices were, on average, 8.4% and 14.9% below baseload levels in March and April, respectively, it said.
For wind, prices were 8.2% and 15.5% below baseload levels on average.
Cornwall Insight wholesale team lead Tim Dixon said: “Generators have experienced significantly reduced revenues during the COVID-19 outbreak, as a result of a significant decline in wholesale prices.
“Solar and wind technologies, in particular, have seen these impacts exacerbated as price cannibalisation worsens amid low demand levels.”
Dixon said that generators exposed to wholesale revenues will be feeling varying degrees of impact from the lower wholesale prices depending on how they have hedged and traded their power.
“Our Green Power Forecast survey highlighted that some generators – typically embedded renewables – were able to lock in fixed price Power Purchase Agreements for the current year (2020-21) at more healthy prices. Some generators were able to achieve over £50/MWh if agreed before November 2019,” he said.
“While on the surface this might seem to impact all generators, many will not be receiving revenues in line with these figures. Ultimately, revenues earned will depend on the hedging and trading strategies of each plant,” Dixon added.