Britain is on the brink of a subsidy-free renewables “revolution” which could create up to 18GW of new capacity by 2030 and attract £20 billion of investment, analysts have claimed. Aurora Energy Research said the explosion of subsidy-free renewables would largely snuff out the already dim prospects for new combined-cycle gas turbines (CCGTs). “Back in 2010 at the start of the Electricity Market Reform process in Great Britain, few would have imagined that by 2018 we would be talking about a subsidy-free future for renewables,” said Aurora head of product development Mateusz Wronski. “Yet, this is where we have arrived, and our research highlights clearly the enormous prize and potential in the market, not only in Great Britain but across Europe. “This will be a true game-changer for the energy industry and policy makers, with a knock-on effect on baseload technologies as well as flexible generation.” Analysis by Aurora suggested 9GW of solar, 5GW to 6GW of onshore wind and 3GW to 4GW of offshore wind could be built without subsidies by the end of the next decade. It predicted solar and onshore wind would reach grid parity in the early 2020s, whilst offshore wind would hit the milestone in the late 2020s or the 2030s. To achieve the projected build out, financing costs would need to be lowered through a better understanding of the merchant risks for renewable generation.
Edie 22nd March 2018 read more »