![]() If the production profile is not in line with demand, the capture price received by the project can be lower than the average wholesale price for all generation. When there is no wind, prices will go up, but wind projects will not get the benefit of these as they are not producing. When there is a lot of wind, and correspondingly a lot of wind power generated, supply may become too plentiful, causing prices to go down. ![]() The increasing penetration of wind and solar in many markets means that the industry is forced to grapple with a growing number of periods where there is a lot of wind power or solar power at the same time, as all projects in a given area are subject to the same weather patterns. Projects are increasingly exposed to short term spot prices even if they benefit from long term price regimes like CfDs (contracts for difference) – the power is still sold in the wholesale market in any case, and subject to the discipline of balancing costs and marginal pricing. “Capture prices” have become a hot topic for renewables lately.
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