Downward pressure on wholesale prices, regulatory change and subsidy cuts make it more important than ever for generators to maximise the value of their projects
What are Generator Revenue Streams?
Generators typically secure revenue for their projects from three areas: wholesale energy prices; embedded benefits - which are payments made to distributed generators for reducing the need to use the transmission network; and subsidies - paid to renewable generators for helping to decarbonise the the UK energy mix.
This week’s headlines: demand on the GB transmission system falls to its lowest-ever level; MPs have urged action to remove barriers to greater deployment of offshore wind; and the regulator has stressed the importance of delivering more investment for less as it prepares to set out new network price controls.
This week’s headlines: using surplus renewable generation to produce hydrogen could significantly boost renewable generators’ revenues in the decades ahead; Ofgem is easing the burden of the increased costs of balancing the system during Covid-19; and wind helps the UK break another renewables record in the first quarter of the year.