Is The Sun Setting On The Winds Of Change In Renewables?
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The AFR is today questioning the future of the renewables development pipeline as increased capacity placed downward pressure on wholesale prices. Solar in particular provided >30% of midday power on over 20 days last month, a first in Australia. This peaked on 30th June with renewables supplying almost 40% of the grid causing wholesale prices to plummet to zero for a 5 minute window.
The effect was seen across the Eastern/Southern states who have been driving investment in the sector for a number of years. With such a dramatic impact on wholesale prices, the article calls into question the future funding of major renewable projects who base their financial viability on power purchase agreements.