L R AS Published on Monday 2 March 2020 - n° 311 - Categories:various sectors
The development of photovoltaics requires attention to its consequences:
The development of photovoltaics requires attention to its consequences:
1°) the integration into the grid of the energy produced could be a real problem, as the energy infrastructure must be able to absorb the additional production.
It is therefore necessary to invest in the reinforcement of the installations in quantity and quality, as we can already see in Holland and Portugal, where the network cannot accept additional production. The problem is acute in emerging countries because of the importance of the power plants under construction or projects under study.
2°) We are witnessing prices coming from auctions at particularly low levels. Thus, prices below $20 / MWh seem attractive but it is difficult for builders to respect these prices. It is not known whether the projects will prove profitable, especially since part of the plant's depreciation depends on the sale of energy on the market, hence a great unknown for the profitability of the projects. Thus, low prices risk scaring away investors who would prefer a guaranteed return on their investment.
On the other hand, the oil companies are watching this development with interest because the market is evolving in their favour: the more markets become merchant, the greater the capacity to issue energy purchase contracts will become, which is reserved for the large electricity companies. In addition, oil companies are able to use their commercial expertise, risk appetite and financial strength
PV Tech of 26 February
