Fitch: Renewables Enjoy Revenue Stability Enhanced by Minimal Market-Price Risk Exposure

CHICAGO--()--Fixed-price power purchase agreements and public incentives insulate renewables from pricing risk, according to a new Fitch Ratings report.

"In addition to pricing advantages, renewables enjoy increased demand spurred by tighter emission compliance standards," said Christopher Joassin, Director. "Carbon dioxide compliance costs will also improve renewables' competitiveness."

Key factors affecting renewables include:

--U.S. wind energy projects, particularly on the West Coast, are challenged by extreme climatological conditions linked to El Nino weather patterns, resulting in both excessive and insufficient wind resources.

--Brazilian electricity prices have reverted to historical averages with improved hydrology, stabilizing cash outflows for energy purchases.

--Offshore wind installed capacity in the EU is expected to increase to approximately 11 gigawatts by the end of 2016 with the majority of projects commissioned in Germany and the U.K.

For more information, a special report titled 'Renewable Energy Projects - 2016 Briefing' is available on the Fitch Ratings web site at www.fitchratings.com or by clicking on the link.

Additional information is available at www.fitchratings.com

Renewable Energy Projects - 2016 Sector Briefing

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=877915

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Contacts

Fitch Ratings
Greg Remec
Senior Director
+1 312 606 2339
Fitch Ratings, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Federico Gronda
Senior Director
+0039 02879 087287
or
Glaucia Calp
Senior Director
+57 1 326 9999
or
Christopher Joassin
Director
+1-312-368-3166
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Greg Remec
Senior Director
+1 312 606 2339
Fitch Ratings, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Federico Gronda
Senior Director
+0039 02879 087287
or
Glaucia Calp
Senior Director
+57 1 326 9999
or
Christopher Joassin
Director
+1-312-368-3166
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com