“The effects of this are definitely more acute in southern Europe and in countries where there is high deployment of PV,” explains Peech. “The UK, for now, has felt this less, given lower irradiation and less rooftop deployment.”

Most operational PV assets in the UK are either supported by government-backed mechanisms, or have long-term power purchase agreements (PPAs), helping to alleviate the impact of cannibalization, Peech adds.

Curtailment events, when grid operators request certain plants to stop producing power due to congestion issues, have become more common in recent years, explains Tomás García, Senior Director for Energy and Infrastructure Advisory in Spain at JLL.

“This issue, alongside cannibalization, is likely to become more important,” he says. “The current situation in Spain is, we feel, an example of what may lay in store for the rest of Europe.”