Beating Cannibalization: Securing renewable energy Revenue

Synopsis

As renewable penetration accelerates, both solar and wind assets across the UK and Ireland are increasingly exposed to price cannibalisation and negative pricing. Traditional PPA and support mechanisms are being tested as revenue volatility rises. This case study examines how developers, buyers, and offtakers are adapting commercial structures to protect value—drawing on practical examples from the UK and Ireland’s evolving merchant and balancing markets.

• Revenue erosion across wind and solar: exposure to negative pricing, CfD caps, and volume risk
• Commercial mitigation strategies: hybridisation, storage co-location, curtailment management, and flexible PPA structures
• Market signals from Ireland: lessons from merchant exposure and balancing mechanism participation that inform UK strategies