An “8760” (also known as a “typical meteorological year,” or “TMY”) is the expected typical generation for a given wind or solar project for each of the 8,760 hours in a non-leap year. Despite their widespread use in the renewable energy industry, using an 8760 to project financial performance can lead to significant errors in revenue modeling.
Purchasing renewable energy is a means to an end: decarbonization. Yet, renewable energy projects are not all equal when it comes to cutting carbon. LMEs solve a pressing need for more accurate and transparent data.
Purchasing renewable energy is a means decarbonization, but renewable energy projects are not all equal when it comes to cutting carbon. Locational Marginal Emissions (LMEs) measure carbon emission avoided by renewable energy projects at the most granular spatial level: the electrical node where energy is injected into the grid.
Texas crisis illustrates how hourly generation during high-priced hours spells the difference between big wins and big losses for clean energy buyers and sellers.
While detailed analysis of the Texas event crisis is still ongoing, the authors note, they examine some of the notable takeaways and trends in renewable energy markets from last year’s performance.
Four trends that illustrate how solar power markets performed in 2020.
First used with wind projects, a pgPPA manages weather-related risk by settling a facility’s energy transfer based on a proxy generation index, rather than on actual metered generation. Operational risk shifts from buyer to seller.
Scout Clean Energy reaches commercial operations at Heart of Texas. REsurety provided risk analytics to support a Proxy Generation PPA for the project.
REsurety and Energy GPS have joined forces again to empirically analyze how wind farms with P99 Hedges would have fared in ERCOT in the record-setting 2018-2019 period.
Hedging structure allows Scout Clean Energy to manage risks associated with weather and price variability for its Heart of Texas wind farm.