Rapid increase in the share of renewables has destabilized the wholesale electricity markets in Europe as it has in India. As a result, power coal-fired generators remain very unsettled and their low prices, sometimes below generation costs, challenge the health of power generators.
Generators in Europe are finding it hard as in India must therefore quickly adapt their business models to these new realities and accelerate digital transformation efforts focused on productivity, agility and innovation, in order to grow profitable revenue streams. As highlighted at COP21 in Paris, the urgent focus for world governments is to limit the rise in the planet’s temperature to 2°C by reducing greenhouse gas emissions. The European Union has set a target of a 40% reduction in Greenhouse Gases by 2030, this has subsequently given rise to large investments into renewable energies. The increase of renewables in the electricity mix has caused electricity market destabilization.