Hybrid assets and the shift toward time‑aligned energy value

Why timing and value are reshaping project design

Over the past two years, wholesale revenue dynamics across the NEM have shifted materially. Sustained daytime price compression and growing selectivity in offtake processes are reshaping how renewable projects are assessed.

In this environment, annual MWh output remains important - but on its own it is increasingly insufficient to support strong contracting outcomes.

Increasingly greater emphasis is being placed on when energy is delivered, how projects perform during low-value or negatively priced intervals, and how risk is allocated between counterparties.

As a result, hybrid configurations are increasingly being incorporated at the project design stage because:

• Shaped offtakes are clearing differently to run-of-plant structures
• Delivery timing and profile are carrying greater weight in negotiations
• Valuation approaches are becoming more sensitive to flexibility, volatility exposure and the interaction between generation and storage

These shifts reflect structural changes in how energy is valued across the day.

In our latest article, we examine how this is influencing project design, contract structures and valuation frameworks - and what it means for renewable developers, utilities, corporate buyers and investors navigating today’s offtake market.