Electricity market price volatility has increased, creating an opportunity for flexible generation and storage. The Wärtsilä Energy Transition Lab
shows that combined cycle gas turbine profitability is down 36% from 1 January to 9 May 2020, coal generation is making a loss difference -229% in the UK. In contrary to the UK, German combined cycle gas turbine profits show a positive development, which can to a large extent be contributed to heavily reduced gas and CO2
prices, making cyclic operation feasible. However, flexible assets have increased their profits from day ahead and intraday markets by a staggering 471% for the first 5 months of the year. It stands to reason that flexibility is being rewarded and that there is an unprecedented opportunity on the European markets for very flexible plants right now – a trend that predicts well for a faster energy transition.
The Guardian recently reported that the global coal industry will “never recover” from the COVID-19 pandemic. We have witnessed the same through the Wärtsilä Energy Transition Lab - a free-to-use data platform developed to help the industry, policy makers and the public to understand European electricity markets and plan for a future with a significantly increased level of renewables. The COVID-19 pandemic has given us a glimpse into that future, with the global lockdown causing a decrease in energy demand and leading to a significant increase in renewable penetration.
Wärtsilä Energy Transition Lab could play a vital role in the transition from coal to renewable energy and in powering the next generation. Watch the recording of our Live session to learn more.