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Europe power long-term sensitivity: Impacts of wind and solar variability (May 23 base case)
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Report summary
This insight explores the "weather sensitivity" of the May 2023 long-term outlook for Europe’s major power markets. Against a background of sustained, high-levels of investment in wind and solar generation, here we present the findings of six sensitivity cases examining the up and downside to captured revenues from alternative within year wind and solar resource patterns. Results show, at a high resolution, that while average annual prices on the day-ahead market remain strong, highly decarbonised power markets decrease the stability of price formation.
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