Aurora’s latest Distributed and Flexible Energy Market Outlook Report for H1 2018 presents Aurora’s comprehensive view on developments in policy and technology, our integrated market outlook including revenue stream forecasts, and investment case analysis.
Key developments over the past half year:
- Depressed CM prices and the reduction in battery derating factors has dampened near-term growth of newbuild flex projects
- Mid-long term shifts in the market favour flexible and distributed technologies, with growth driven by a system increasingly reliant on intermittent renewables
- Regulatory reforms continue to target network and balancing charge allocation, with the erosion of value from embedded Triads, peak GDUoS and BSUoS
- Multiple business models are viable today with the feasibility of different business models constantly evolving with new technological breakthroughs:
– Hybrid and Behind-the-meter business models stand as viable alternatives
– Energy arbitrage/trading business models are the next frontier for flexible assets, especially with the prospect of market harmonisation with Europe
The report and accompanying data can be downloaded from the reports section of EOS.
The next update of the market outlook report will be available in October 2018.