Nothing will be the same as before. or perhaps it will

FuturENERGY March-April 2020

This article reviews the situation being experienced due to the current crisis, essentially the fall in the market price, and the simulation of what could happen in future, with a high renewable penetration. It also analyses how the different ways power is generated take part in price formation and the possible impact on consumption profiles. This article also discusses the impact it might have on plant maintenance, the foreseeable impact on PPA contracts, as well as some proposals for when the crisis is over and, insofar as it is possible, how we correct past situations.

We do not know what is going to happen tomorrow, but part of the future has already caught up with us: the fall in the retail price of electricity. I am not at all sure that the expected integration of renewables represents a direct reduction in the market prices; the variable cost has to be offset and, depending on the contractual terms of maintenance services, it might be more advantageous to offer high prices and/or stop the plant…

By Alberto Ceña, General Secretary of AEMER, the Spanish Association for the Maintenance of Renewable Energy