Idle Capacity During Curtailments and Forced Outages in PPAs
Definition
Renewable energy sellers lose revenue during curtailments or forced outages when unable to deliver, yet remain liable for purchaser's replacement power costs including green credits. No generation revenue is earned while paying make-up penalties, creating idle capacity loss. This recurs during transmission or off-taker constraints.
Key Findings
- Financial Impact: Not quantified; includes replacement power costs plus lost revenue
- Frequency: As needed during outages
- Root Cause: Contractual liability for non-delivery despite external constraints
Why This Matters
This pain point represents a significant opportunity for B2B solutions targeting Services for Renewable Energy.
Affected Stakeholders
Plant Operators, Sellers, Transmission Operators
Deep Analysis (Premium)
Financial Impact
$100,000+ per event in replacement power and green credit penalties • $30,000+ monthly in aggregated replacement costs • $40,000+ per outage in make-up penalties
Current Workarounds
Manual meter data reconciliation and penalty logging in Excel • Manual tracking and reconciliation of downtime events in spreadsheets to calculate penalties and lost revenue • Subcontractor manager manually pulls SCADA/meter data, outage logs, and market prices, then reconstructs what should have been delivered vs. what was delivered; they back-calc replacement power exposure and REC/green credit shortfalls in large Excel workbooks, share issues via email/WhatsApp with asset owners and traders, and track disputes and curtailment instructions in ad‑hoc spreadsheets and notes.
Get Solutions for This Problem
Full report with actionable solutions
- Solutions for this specific pain
- Solutions for all 15 industry pains
- Where to find first clients
- Pricing & launch costs
Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Meter Inaccuracy Penalties and Delay Damages in PPA Compliance
Settlement Calculation and Reconciliation Errors in PPAs
Delayed Invoicing and Billing Disputes in PPA Reconciliation
Excessive Spare Parts Inventory Costs from Siloed Management
Equipment Downtime from Spare Parts Stockouts
Injury and Fatality Costs from Poor Incident Investigation in Renewable Construction and O&M
Request Deep Analysis
🇺🇸 Be first to access this market's intelligence