The cannibalization effect occurs when renewables of the same generation profile produce simultaneously, depressing the wholesale electricity price.
But we guess you have heard that already. What we rarely talk about is the ‘why’ this phenomenon happens, so we decided to take action.
This in-depth guide was inspired by the questions we have been receiving about the cannibalization effect over time. From complex definitions the industry uses in a non-approachable way to tangible analysis of the effects, both country-wide as well as in a locational context.
In this guide you will learn:
- All about the market fundamentals that lead to renewables being more prone to cannibalization risk than other generation technologies, including an in-depth analysis of spot markets and the marginal pricing method.
- Strategic tips that renewables, as new entrants to the electricity markets, need to be aware of on managing and mitigating the cannibalization risk.
- Cannibalization analysis, including historic capture factor and forward expectations, for some of Europe’s top renewables markets: Spain, Sweden and Germany.
Download our guide, and enjoy the deep dive. It will be more fun than you think!
By Maritina Kanellakopoulou, Insights Analyst & Dr Werner Trabesinger
