TRIG warns of ‘material impact’ of COVID-19 as power price forecast slides

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Image: Getty.

European renewables investor The Renewable Investment Group (TRIG) has warned of a “material impact” from COVID-19 on its power price forecasts, contributing towards a cut to the group’s net asset value (NAV).

In an update issued to the market today, TRIG confirmed that wholesale power price forecasts for jurisdictions in which it owns renewables assets had tumbled by an average of 17% for the forthcoming five years.

This figure includes a significant decrease of 25% forecasted over the rest of 2020 and 2021, driven predominantly by a collapse in power demand associated with lower economic activity.

The effect of the pandemic on power demand and, in turn, pricing has been covered widely, with European solar developers last week expressing fears that the onset of subsidy-free developments could be beset by the changing market dynamics.

TRIG’s analysis would appear to compound those fears. In the UK market in particular, the firm is expecting an average cannibalised capture price for the power it generates of around £39/MWh (US$48/MWh) for the period 2020 – 2024.

Nearly three-quarters (74%) of TRIG’s revenue base is presently fixed, and the company has pointed at feed-in tariff-backed projects in both France and Germany as being of particular benefit as power prices contract.

But the short- to mid-term collapse in power prices still implies a reduction in TRIG’s NAV of around 5 pence per share. This is equivalent to a 4% drop.

TRIG owns a portfolio of wind, solar and battery storage projects throughout Europe with a combined generation capacity of 1.6GW.

Power price volatility is having unforeseen impacts on renewables across the board, not least of all in the Netherlands. This week, the country's renewables generators were warned that subsidy payments will be suspended if wholesale prices drop into the negative for six consecutive hours or more, as occurred in late March.

Solar Media’s new Digital Summits series has been launched to provide critical market insights, intelligence and networking opportunities to maintain our industries’ momentum. Running throughout May and June, the Digital Summits will deliver the full live event experience to your own home.

  • Energy Storage Digital Series: 11-15 May. See here for more information on how to take part.
  • Large Scale Solar Digital Series: 18-22 May. See here for more information on how to take part.
  • Solar & Storage Finance Digital Series: 1-5 June. See here for more information on how to take part.
  • EnTech Digital Series: 15-19 June. See here for more information on how to take part.
  • Everything EV Digital Series: 6-10 July. See here for more information on how to take part.

PV Tech has set up a dedicated tracker to map out how the COVID-19 pandemic is disrupting solar supply chains worldwide. You can read the latest updates here.

If you have a COVID-19 statement to share or a story on how the pandemic is disrupting a solar business anywhere in the world, do get in touch at or

6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.

Read Next

June 18, 2021
Spanish utility Acciona has set a price range for its planned initial public offering (IPO) of its renewables division of up to €29.76 (US$35.36), potentially valuing the business unit at as much as €9.8 billion (US$11.6 billion).
June 16, 2021
A round-up of the latest stories from the US solar market, featuring news of Sunnova’s latest securitisation, Ameresco’s installation of solar at a US Air Force Base and Extensible Energy’s latest capital investment.
June 15, 2021
The confidence of renewable energy investors and developers stands at an “all-time high”, a new report by the American Council on Renewable Energy (ACORE) claims, however investment must surge in the coming years if the US is to meet decarbonisation goals.
June 15, 2021
Everwood Capital and the Prodiel Group have combined to create DVP Solar, a joint-venture (JV) focused on developing large-scale international photovoltaic projects, with gigawatts at various stages of development.
June 4, 2021
Statkraft has completed what it claims to be Albania’s first floating solar plant, energising a 500kW, first phase install at the base of a hydropower project on the country’s Banja reservoir.
May 26, 2021
Solar developer and distributor BayWa r.e. has acquired French wind and solar developer Enerpole to grow its presence in the country’s renewable energy sector.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 6, 2021
Solar Media Events
August 24, 2021
Solar Media Events, Upcoming Webinars
October 6, 2021