Generator Financial Performance Report for FY2020

21 June 2022

Generator Financial Performance Report for Financial Year 2020

Today we have published the Generator Financial Performance Report for financial year 2020.  This report examines the financial performance of generators operating in the SEM with a combined ownership capacity greater than or equal to 25MW.

This report does not reflect the current landscape of unprecedented international wholesale fuel costs which have been rising significantly since early 2021.  These impacts will be reflected in the 2021 report due to be published next year. 

During the first half of 2020, markets were experiencing reduced demand, falling gas prices and wholesale electricity prices as economies responded to the covid-19 pandemic. This report therefore reflects the market conditions at that time.  It provides aggregated information on the financial performance of generators in the SEM, as well as breakdowns by generation fuel source and generation type. 

Key findings include:

  • Average day-ahead market prices were €38/MWh, the lowest market prices since the production of reports in FY2012
  • Total volumes of electricity sold were 5% lower than in FY2019.
  • Total revenue decreased in FY2020 compared to FY2019.
  • Fuel and Non-fuel related Operating Costs fell by a comparable percentage, resulting in a total gross margin of 24% in FY2020 (no change from FY2019).
  • Depreciation & Impairment costs rose significantly in FY2020 (from €348 million in FY2019 to €426 million in FY2020) and Interest & Tax also slightly increased (from €123 million in FY2019 to €129 million in FY2020).
  • As a result of decreased total revenues and the increased Deprecation & Impairment costs the net margin across all generators fell from 7% in FY2019 to 0.7% in FY2020.

This report provides greater insight into the financial performance of generators in the SEM, which helps to inform policy decisions.  It also improves the level of market data available to all industry stakeholders, providing further market transparency.

A slide pack of key findings has been published alongside the main report.