From our GCP note published on 1 July 2021:
“However, where a renewable energy generator sells power in the spot market, it may not be able to obtain the baseload power price. Currently, it may often be the case that at times of peak renewable production, there is insufficient demand for the power generated. Consequently, spot prices may be considerably below baseload prices. The term ‘capture price’ describes the actual power price achieved.
If all energy produced could be stored when demand is insufficient, this problem could be solved. Addressing the UK’s deficiency in energy storage should help narrow, and in time perhaps even eliminate, the spread between capture prices and baseload prices.”