The vast majority of European renewable energy sellers anticipate a significant increase in their exposure to the volatile merchant market over the next five years.
That’s according to the Renewables Industry Survey Report 2023, released this week – the polling found that nearly 26% of the 543 renewable energy sellers surveyed currently operate less than 10% of their portfolios on a subsidy-free basis exposed to price risk.
By 2027, the most common expectation was that 30-50% of portfolios would be exposed to power market risks.
The shift towards open markets is fundamentally changing the risk profile of renewables as a sub-asset class of infrastructure investing.
This has led to a greater focus on risk management, with more than 65% of respondents viewing it as critical to mitigate the ‘holy trinity of renewable risks’ – price, profile, and volume.
The Renewables Industry Survey Report 2023 was conducted by Pexapark and its partners BloombergNEF, Fluence, Act Renewables, EneI X Advisory Services, and AFRY Management Consulting and polled over 1,255 individuals from 65 countries involved in the renewable energy sector.
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