How to Design a Successful Development Power Project
May. 22, 2017
As the popularity of clean energy moves to the forefront of public policy and social awareness, demand for wind and solar generation increases. In turn, renewable energy is rapidly saturating the market. The more of these renewable sources come online, the more economically competitive the output is with traditional fuels.
Since 2000, the number of renewable generation owners has skyrocketed from less than 150 to more than 4,000. This saturation not only creates significantly more competition but also increases concerns regarding grid reliability and maintenance. Both contribute to the need for more sophisticated analytics to minimize grid impact and navigate the competitive landscape.
Utility-scale wind capacity has grown by an average of 15% annually since 2011 and solar capacity by an average of almost 75% annually in the same period. So is it too late to get in the game? Or just the right time? And how do you know in advance what the market conditions will be like when planning is complete and construction begins – or, more importantly, when the renewable source comes online?
Market competition continues to rise, tax support continues to decrease, and the multitude of variable complexities continue to exist. With so much information available, it is a daunting endeavor to collect, clean, and analyze it all effectively, yet it must be done. Very sophisticated analysis is necessary in order to profitably place a project, determine its financial viability, and limit its impact on the grid’s reliability.