Power prices across Europe may not fully recover until 2025 under a worst-case scenario of the economic impact of Covid-19, according to forecasts.
However a report by Aurora Energy Research said that under a less-extreme scenario, prices could recover by 2022.
Aurora modelled four scenarios for economic recovery across seven EU countries, including the UK, Italy, France, Germany, Spain, the Netherlands and Poland based on factors including the duration of lockdowns, demand levels and commodity prices.
The report also says that although revenues for subsidised renewable projects are partly or fully protected, those that are being developed on a merchant basis are likely to see more severe impacts.
Felix Chow-Kambitsch at Aurora Energy Research, said: “The effect of Coronavirus has rippled through European energy markets – significantly reducing demand and prices of gas and electricity."
“European power utilities are likely to experience a significant fall in revenues in 2020, with merchant-exposed renewables schemes significantly affected.”