Price cannibalization threatens PV growth
As solar deployment increases, concerns about price cannibalization continue to be more and more relevant. Large-scale solar generation during midday hours may result in curtailment or unprofitable wholesale power prices. As supply increases, the economic viability of solar PV projects could fall into question.
Significant market price fluctuations and risks will threaten investor appetite, potentially hurting the long-term large-scale deployment of solar power. This has already been seen in California, with Karen Edson’s notorious 2012 “duck curve” showing the disconnect between generation and demand. Already, increases in renewable energy penetration in the state, as high as 26% of …
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