In Great Britain, solar and wind will generate 70% of electricity during peak solar hours by 2035. But this surge in supply brings a harsh commercial reality: solar is cannibalizing its own value.
With more solar generation concentrated around midday, prices are collapsing exactly when solar output is highest. Revenues are dropping. Contract for Difference (CfD) payments are no longer a guaranteed lifeline. And merchant-exposed projects are under pressure.
The commercial risk is clear: if developers don’t manage this shift, they’ll build stranded assets at scale.
This article explains what’s causing solar cannibalization and how to build a diversified solar portfolio to mitigate price risk.
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