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Home/GB Renewables: How low can capture prices go? Understanding risks in an increasing merchant future

GB Renewables: How low can capture prices go? Understanding risks in an increasing merchant future

Aurora’s new strategic insight report on GB Renewables  entitled ‘How low can capture prices go? Understanding risks in an increasing merchant future’ is part of a series of reports looking into the nature of subsidy-free or at least increasingly merchant renewables as part of our GB renewable subscription.

Key messages to emerge from the analysis are:

  1. Failure to appropriately price merchant risks could delay subsidy-free renewables by 10 years, and threaten UK’s 2030 decarbonisation target
  2. Conservative estimates on P90 bound of wind and solar capture prices are £31/MWh and £33/MWh respectively in the long term
  3. PPAs, portfolio diversification and revenue stacking are some of the key tools to manage and mitigate merchant exposure
  4. Understanding lower bounds for capture prices unlocks subsidy free renewables to a broader range of investor

If you would like to understand more about our renewables subscription service please get in touch

For subscribers, to access the full report, please click on the button below

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