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Measure renewable capture value
Renewable output is correlated with weather and other generators. Revenue depends on the generation-weighted price, not just the time-average price. Losses, curtailment, degradation and contracts require explicit treatment.
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Working relationship
Capture price = Σ generated MWh × price / Σ generated MWh
What to keep separate
A high capacity factor does not guarantee a high capture price or bankable cash flow.
Your task
Calculate capture price before and after a curtailment assumption, then compare solar and wind profiles.
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Key terms in plain English
- MWh
- Megawatt-hour: a quantity of energy. A steady 1 MW for one hour delivers 1 MWh.
- Curtailment
- A reduction in generation below what could otherwise have been produced. Network limits, system security and commercial decisions can have different causes.