UK New Energy Going Incentive-Free

Law firm lauds 'subsidy-free clean power future'; WFW report says alternative finance models and storage solutions allow renewables to cut government ties

10 October 2019 (ReNews Biz)

“…[There will be a ‘net positive effect’ of a drive in Europe towards subsidy-free project financing…Infant technologies may have been allowed to grow to grid parity from government support via permitting, subsidies and energy transition targets, but it is ‘freedom from the chains of government interference’ that is the leading driver of alternative financing models, [according to] The Future of Renewable Energy report…The most popular model is the corporate power purchase agreement (CPPA), which is supported by companies increasingly making 100% renewable energy consumption a leading priority…

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Companies best suited to survive in this climate are those that are able to understand and manage merchant risk, engage with and develop CPPAs and help tackle intermittency through energy storage solutions…[G]reen issues trump all other metrics for offtakers, including security of supply, price certainty and cost savings…[Energy storage is also] expected to continue to attract significant investor interest…Lower costs and advances in technology to ensure longer life are evident now and expected to improve driven by manufacturing learning rates, cell chemistry improvements and economies of scale…Co-locating renewables projects with batteries with an increase in ‘integrated thinking’ among utilities and developers is [also] increasingly evident…” click here for more

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