Wood has launched a new power price forecasting (PPF) service to help provide customers with greater certainty around the financial return they can expect from investment in renewable energy projects.
In recent years, significant reductions in renewable energy generation costs has seen many governments remove the financial subsidies traditionally available for renewable projects and instead turn to competitive auctions to extract the lowest cost possible for electricity procurement. This has changed the level of risk facing developers, investors and lenders on renewable projects as they’re now exposed to a more volatile merchant price rather than a fixed rate. Wood’s new PPF service will provide customers with clarity on real-time electricity costs, plus an ability to simulate future costs based on a range of different scenarios. This solution enables them to see where the investment risks and potential upside opportunities could lie throughout the lifecycle of a renewable project based on forecast electricity prices.
