Solar Consistently Outperforms Wind According to Fitch

  • Solar consistently outperforms wind according to ratings agency Fitch.
  •  “More than a decade of analysis shows that solar resources are consistently more stable and predictable than wind, resulting in less volatile revenues and generally higher ratings,” says Andy Joynt, Senior Director, Global Infrastructure and Project Finance. “Wind, by contrast, does not measure up.”
  •  An overwhelming majority of wind projects (89%) have annual production levels below their initial P50 forecasts.

Wind project performance can suffer because the technical challenge of forecasting resources often leads to overestimated power production. Challenges can include equipment issues, degradation, weather pattern changes and extreme weather events. As a result, an overwhelming majority of wind projects (89%) have annual production levels below their initial P50 forecasts.

By contrast, 86% of solar projects analysed by Fitch were within 5% or better of their original P50 levels. Only 7% were significantly below those initial forecasts. Fitch’s rated universe includes 69 issuers dependent on wind or solar project operations in 12 countries. Nearly half of these projects are located in Latin America, while 40% are located in North America and 12% in Europe.

Fitch Ratings’ portfolio of wind and solar project finance ratings spans countries, regions and continents. Key rating drivers and credit metrics are applied consistently to assign and monitor ratings, despite geographic disparities. Read the full report HERE

Author: Bryan Groenendaal

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