L R AS Published on Saturday 2 May 2020 - n° 320 - Categories:evolution-stat
Even solar energy is affected by the pandemic
A year ago, the world of PV installers in Europe welcomed the success of electricity without subsidies, and affirmed the primacy of the wholesale market, especially in Spain and Italy. Professionals were not blind to the challenges, to the domination of the big players, to the difficulties of absorption by the grid, but commercial solar (sold on the wholesale market) seemed to be set to remain in Europe for the long term.
It was becoming a fundamental pillar of market growth and was enjoying rapid growth.
With the pandemic, the solar panorama changed. It hit solar energy without subsidy where it hurts (profitability). It has driven electricity prices down to levels not seen for years. Financiers are now tempted to abolish all loans, because the low price of electricity makes it harder for solar businesses dependent on market sales to be profitable. This is a reality that European solar energy will have to face for some time to come.
The risks extend to subsidised projects. The increase in the number of renewable energy installations, which are given priority for feeding into the grid, is helping to drive down market prices, which can then become negative. However, according to European regulations, state support ceases when negative electricity prices persist for more than six hours. According to Aurora Energy, wholesale electricity prices in Europe may not fully recover before 2025.
PV Tech of 28 April
Editor's note The radical change in the face of the solar market is certainly cyclical. It also calls for caution, because what has happened can happen again in a different form, and lead to a further collapse in the prices of renewable energies.
This change of panorama will mark the solar and even wind energy professionals.
