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.
BayWa r.e.’s 175 MW Don Rodrigo project in Southern Spain sells electricity to offtaker Statkraft under a 15-year PPA. Falling PPA prices in Spain this year have reopened discussions about curtailment and solar’s potential for price cannibalization.
Image: BayWa r.e.
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