logoalt Hacker News

7952today at 12:14 AM0 repliesview on HN

Renewables are heavily effected by capital costs. So a renewable energy scheme selling at wholesale prices may sometimes be ridiculously profitable. But it will also have higher interest rates that could wipe out that benefit for the developer. The more successful renewable energy is the lower the average wholesale price is likely to be. And the temporary peaks are likely to correlate with times where the weather conditions will reduce renewable output.

All these reasons make CfD's positive for both consumers and developers. The fact that schemes can be developed outside of this just shows how good the technology is.