Fixed-price power purchase agreements and public incentives insulate renewables from pricing risk, according to a new Fitch Ratings report.
“In addition to pricing advantages, renewables enjoy increased demand spurred by tighter emission compliance standards,” said Christopher Joassin, Director at Fitch Ratings.
“Carbon dioxide compliance costs will also improve renewables’ competitiveness.”
Fitch has also recognised offshore wind as one of the key factors affecting renewables, adding that the offshore wind installed capacity in the EU is expected to increase to approximately 11 gigawatts by the end of 2016, with the majority of projects commissioned in Germany and the U.K.