This EDHECinfra research note examines the impact on the risk profile of wind and solar power investments of the increasing dominance of renewables in the energy mix of a given country.

As green power sources that are intermittent become central to a power system, without commercially viable medium- and long-term storage options, what is the likely impact on the electricity market and system as a whole and do wind and solar investments, which have historically benefited from a safer, privileged position in the power sector, become riskier?

We use the case of the UK as an example of an economy that has made a rapid transition to renewables and away from coal, while relying on very limited hydro and nuclear capacity i.e., the typical transition required of most advanced economies.