• Waves of Change: Charting the Energy Transition | CERAWeek
  • 9 - 13 March 2020, Houston, TX
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Session Details

How Renewables Fare in Competitive Markets

Thursday, March 12

11:30 am - 12:30 pm
Thanks to strong decreases, the LCOE of utility-scale renewables is now lower than the wholesale price in several countries globally. In some cases, this has prompted several developers to develop merchant projects, which represents a major shift from past investment models. Instead of relying on government support, merchant assets rely on wholesale or PPA revenues to recover their costs. Where are we seeing merchant RES projects today? What is their business model? Where could merchant RES opportunities arise in the future? What are the risks faced by such assets, notably self-cannibalization of revenues and value loss in case of renewable surplus? What does it mean for their financing?
Session Speakers