What are Capture Prices?
A Capture Price is the average electricity price (in €/MWh) that a project achieves according to its technology (wind or solar PV) and geographic specific renewable energy resources (wind speed or solar irradiation) throughout a given period of time.
Capture prices tend to decrease in comparison to baseload prices as the generation capacity of a project specific technology increases.
How to calculate them?
1. Using our PPA Evaluation Tool
- Set your project's technology & geographic location
- The Tool will automatically calculate the capture prices for 2021 & 2022
- Compare with your project's price range
2. Using the Formula
The capture prices (CP) can be calculated in two steps using hourly production (hP) values of a renewable energy project and electricity market spot prices (hSP) over a specific period of time.
Step 1: hourly revenues = hP x hSP
Step 2: CP = sum of hourly Revenues / sum of hP
Why are they relevant?
- A PPA price of a project is significantly impacted by its capture price, since it defines its financial value through the ability to generate revenues.
- Capture prices define the worth of specific technologies within certain geographic location.
- Forecasting capture prices are among the most important elements when performing financial modeling analysis for investment driven decisions.
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