A two-headed dragon looms on the horizon for PV. Asset owners face cost escalation risk, borne by increases in O&M labour costs, ageing assets, and a supply chain squeeze. In addition, widespread energy production underperformance has been reported in utility-scale assets – which can be as high as 6.3% vs. baseline modelling.
This double impact is a problem for investors who expect PV assets to deliver stable investment and secure cashflows. But the impact of these two threats means sponsors will seek ways to protect existing cashflows, which may mean targeting contract pricing in O&M. As a result, this exposes assets to unplanned failures, potentially exacerbating underperformance.
Join Wood Mackenzie and kWh Analytics as we explore the factors that give rise to cost escalation risk and PV plant performance degradation, as well as explore potential solutions to combat these problems.
- Deep dive into the cost trends and asset owner reactions
- The impact of O&M reduction on asset performance
- The solution for improving O&M