Merchant solar and wind projects could be “significantly” impacted as power prices across Europe fall, according to Aurora Energy Research.

The research firm came up with different scenarios for economic recovery amid the coronavirus pandemic across seven EU countries – UK, Italy, France, Germany, Spain, the Netherlands and Poland. The scenarios depend on factors such as the duration of lockdowns, commodity prices, investment, supply, and demand.

Aurora found that in a worst-case scenario power prices may not recover until 2025, as they have already fallen between 30% and 40% on average during the outbreak.

In a mild Covid-19 scenario, power prices have the chance to recover by 2022, according to the research firm, but renewable energy projects such as solar and wind may be the ones to struggle most as a result of power price crashes.

The company projects that about 34GW of renewable developments will be at risk across the seven countries the report focuses on.