Calculating lost revenues
Potential revenues are lost during periods of negative power prices and solar clipping
CfD Revenue Lost in Negative Price Hours
CfD revenues lost due to wholesale prices falling below zero. This loss occurs because no CfD payments are made when wholesale prices are negative, leading to foregone revenues based on the CfD strike price.
CfD Revenue Lost = ∑(CfD Strike Price × Unclipped Generationₜ) ÷ Installed Capacity (MWp), where Wholesale Price <= 0
CfD Revenue Lost from Solar Clipping
Revenue lost when solar generation exceeds inverter limits (“clipping”). Calculated based on clipped generation multiplied by either the CfD strike price or wholesale price, depending on negative-price exposure.
CfD Revenue Lost (Clipping) = ∑(Clipped Generationₜ × Priceₜ) ÷ Installed Capacity (MWp)
REGO Revenue Lost from Solar Clipping
Lost REGO revenue due to solar generation exceeding inverter limits, calculated as clipped generation multiplied by the forecasted REGO price, divided by installed solar capacity.
REGO Lost (£/MWp) = (Clipped Generation × REGO Price) ÷ Installed Capacity (MWp)
Merchant Revenue Lost from Solar Clipping
Revenue loss under merchant conditions due to clipping. Calculated as clipped generation multiplied by wholesale price, adjusted by installed solar capacity.
Merchant Revenue Lost (£/MWp) = (Clipped Generation × Wholesale Price) ÷ Installed Capacity (MWp)
Example profile showing solar clipping and lost revenue. In this example, solar capacity is 70MWp and AC grid export limit is 50MW. Solar is clipped when generation exceeds the export limit. This solar cannot be exported and therefore potential merchant revenues are lost.
Updated about 9 hours ago