Exploring the Outlook for Offshore Wind Capture Prices

Synopsis

As the energy transition accelerates, the expansion of offshore wind without sufficient storage capacities will bring new challenges to investors and market players. In the coming years, the GB power market is set to become more closely integrated with its European and Nordic neighbours through new interconnectors, while electrification, hydrogen electrolysers and batteries will shape and increase power consumption.

We’ll dive into latest results from Volue Insight’s long-term power modelling to explore how the evolving energy mix will impact long-term capture prices for offshore wind developers amid the lingering threat of price cannibalisation. Will greater production volumes continually erode producer revenues in the long term? How do capture prices stand against latest CFD auction strike prices? What risk does weather variability pose to investor returns?