PPA Platform reports that European renewable energy prices dropped in Q3, PPA platform.
The price of European power purchase agreements for green electricity dropped by 12.4% during the third quarter, compared to the same period in 2023. This was revealed on Thursday by the price tracking platform LevelTen.
The report cited several factors, including the decline in inflation as well as the volatility of markets following COVID-19 and a 2022 energy shortage.
In its quarterly report, it stated that "with current market conditions being relatively stable, it may be prudent for buyers to enter the market quickly to secure the deals they require."
The variety of PPA offtake opportunities is perhaps greater than ever before.
PPAs are long term agreements between solar and wind developers and corporate power users. PPAs are long-term agreements between corporate power users and solar and wind project developers.
PPAs provide developers with a steady income stream that makes it easier to secure financing.
Although policymakers claim that increased green energy will reduce costs, it is not clear what impact the lower deals on ordinary household consumers will have.
LevelTen reported that the period was marked by a large gap between regions. There has been an expansion in projects in Central and Eastern Europe as well as a surge in solar projects throughout Ireland.
The wind industry has been hampered by supply chain issues, inflation, and other factors. In Q3, Belgium, France Greece, Ireland, Italy, and Portugal didn't contribute any prices to the LevelTen Index.
In a market-averaged index, the 25% most competitive PPA price for new-built capacities in 22 European countries from July to September dropped to 76.17 euro ($82.97), down from 86.94 euro a year ago.
The second quarter 2024 figures were 1.3% lower than the second quarter 2024 figure of 77.21 euro.
The solar index rose 1.3% from quarter to quarter, according to LevelTen, attributed by the company's analysts in part due to higher prices in Hungary, Italy and Ireland.
The report said that lower interest rates would make it easier to finance renewable projects. It also stated that the development appetite was also boosted by positive political signs in Britain and German government auctions for wind capacity.
The PPAs that it quotes are usually for 11 years. Prices are settled using hourly wholesale market prices for the day ahead. ($1 = 0.9180 euros) (Reporting and editing by Barbara Lewis, Vera Eckert)
(source: Reuters)
