Renewable energy has never been more affordable to produce. However, for developers and investors, the economics of building new renewable capacity are becoming increasingly complex.
More specifically, negative electricity prices, grid connection queues and rising financing costs are challenging project profitability, forcing the industry to rethink how it creates value.
In this episode of the Energy Transitions podcast, Hallvard Granheim, executive vice-president for Markets at Statkraft, explores this situation in more detail.
Granheim discussed the changing economics of renewables and what it takes to make projects commercially viable in an evolving energy market. He also examines the growing role of power purchase agreements (PPAs) in balancing risks and meeting the needs of renewable producers and industrial consumers.
Ultimately, Granheim argues that the energy transition has moved beyond adding megawatts. It is about developing the right projects, understanding customer needs and ensuring renewable energy remains both competitive and profitable.
Keep up with the conversations shaping the energy transition. Discover more on Enlit World
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