Plunging wholesale power prices across Europe — due to Coronavirus lockdowns reducing electricity demand — have raised questions over the economic viability of zero-subsidy projects, particularly those in offshore wind.

According to Aurora Energy Research, power prices have fallen by 30-40% across Europe due to the Covid-19 outbreak, with a recovery in electricity demand not expected until 2022. If the effects of the pandemic are more severe, by the analyst’s calculations, wholesale prices could fall by up to 50% this year, and markets wouldn’t fully recover until 2025.