The Cannibalisation of Electricity Prices in Europe
Sponsored by: ABB
- Electricity Prices
Date: 12 July
Time: 3PM London/10AM New York
Will the renewables sector destroy its own glorious potential due to the cannibalisation of electricity prices or will the enhanced system flexibility be its saviour?
The drive for decarbonisation coupled with significant growth in renewable power generation is continuously transforming the electricity markets in Europe. The mainstream renewables (wind and solar) have experienced plummeting costs driven by economies of scale and also significant technology maturity. The various support schemes as well as the ever increasing competitiveness of technologies have resulted in the growth of renewables surpassing expectations in some European countries.
More recently, the deployment of subsidy free renewables has reinforced their ability to be commercially competitive, which in turn has cemented the confidence of investors to take increasing risks in investing in these technologies.
If the ongoing trend in renewables growth continues, there is a serious risk of cannibalisation of electricity prices, which could have a knock on effect on the capture prices availed by renewables. This will directly impact the commercial viability of renewables as well as conventional generators. Furthermore, such a situation would potentially discourage investments in electricity generation assets, potentially leading to a security of supply risk.
Enhanced system flexibility, such as increased volume of energy storage in the system, demand side management and expanding the cross-border interconnection levels, is seen as a potential option to support integration of large volumes of renewables and maintain security of supply. However, the key questions remain: Will the risk to price cannibalisation be averted by by technologies providing flexibility? Who will be the potential winners or losers?
For electricity market players, the challenge lies in understanding the impact of such a transformation, together with re-evaluating their strategies, operational as well as growth, to successfully embrace the change. For it is not the strongest, but rather the most adaptable, that thrive in times of change.
Join ABB’s energy market experts for an analysis of this ever-evolving landscape of European energy. Whether you are:
- an electricity producer or trader
- a developer/investor in renewables, conventional generation or energy storage facilities
- a large electricity consumer; or
- keen to learn more about the latest market trends.
You will come away with real-world, hard-hitting, actionable takeaways to help you make the right strategic and operational decisions for your business.
Principal Consultant, Advisory, ABB
Dr. Anser Shakoor is a Principal Consultant at ABB’s Energy Portfolio Management. His industry experience spans wholesale electricity markets, electricity generation with special focus on renewable generation and emerging technologies, transmission and smart energy.
Anser’s recent client engagements have been on optimizing operations and strategic investments, assessing market risks and opportunities based on in-depth analysis of electricity systems and markets in Europe, North America and the Middle East.
Key Learning Objectives
- Is the electricity price cannibalisation imminent with large renewables growth in Europe?
- Will the risk to price cannibalisation be averted by flexibility providing technologies?
- Who might be the potential 'winners' or 'losers' in the European energy scene?
- Strategic Planning
- Electricity Price Forecasting
- Revenue Forecasting
- Generation Portfolio Optimization
- Asset Evaluation
- Investments in Renewables
- Investments in Conventional Generation
- Investments in Storage and interconnection
- Energy / Electricity Procurement
- Energy / Electricity Trading
- Electricity Market Modelling / Analysis
- EV and Charging Infrastructure Developers