April 18, 2021

7 big developments in renewable energy prices in 2020, as well as early takeaways from Texas in 2021

The deep freeze Texas‘ situation is one of the top energy stories of 202. In this state, some projects failed while others took the initiative to help in the case. We will highlight specifics and explain which projects performed and did not perform. Currently, Texas’s situation is still under study as experts try and bring to light what happened in Texas. This piece will analyze each renewable energy project in 2020 to understand the trends of renewable energy.

Renewable energy projects’ values continue to rise: The value of these projects in 2020 rose from as low as less than $1 MWh to $57 MWh data taken considering the project’s importance to the real-time marginal price. Figures show that the highest-value projects are present in areas where penetration of renewable is brutal.

Congestion is a revenue-maker and breaker: From reliable data from good sources, you can tell that the project with the highest value is the wind project, ERCOT West. These projects within ERCOT indicate the production of comparatively little power worth very little. However, in 2020, there was congestion thanks to the oil as well as gas drilling in Delaware Basin, driving the price up for West Texas wind projects. The driver to raise these prices was localized congestion.

Resilient projects bring a competitive edge: It is no secret that cold weather can lead to outages in wind farms thanks to ice accumulation on turbines. In October 2020, an ice storm hit Texas, leading experts to realize that wind projects must take advantage when prices spike. Some projects shut down and strategize ways to keep up with other renewables.

Texas summer price spikes in 2020 were manageable what of 2021: In 2019, there were issues in power demand, and many renewables were unable to meet the demand. However, in 2020, renewable companies were prepared for such an event. Come 2021, with the harsh winter, experts learn that weather conditions will always hit hard since we can only predict but not control these natural resources.

Wind energy prices bottom out at SPP North Hub during low demand:  The costs of wind energy in November 2020 were relatively low with the low decade, but this year with Texas’ situation, they were pretty high.

Solar Energy stabilizes in CAISO after 5  years of shape decline: Over the last five years, solar energy was forming a dangerous curve. However, recent events in California solar value show its increase and stabilization in the previous few months.

Basis in SPP is a less sore subject: The basis of a project plays a significant role in the project’s bottom line. In the last few years, wind energy faced issues with revenue. However, starting from 2020, this sector is moving forward and impacting the renewable energy sector.