Is The Sun Setting On The Winds Of Change In Renewables?
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.