Rising power purchase agreement (PPA) prices across all renewables markets featured in the third quarter of 2022, reflecting robust demand and supply chain challenges, according to Edison Energy.
Edison Energy’s Q3 Renewables Market Report found the recently passed US Inflation Reduction Act accelerated interest in renewable energy project development.
Renewable energy supply chains continue to face headwinds, however, due to a variety of factors, including the Department of Commerce’s delayed ruling on a solar tariff anti-circumvention investigation and the detainment of solar panels from China at the US border due to a new forced labour prevention law.
“With demand for renewables at record highs, prospective buyers with near-term renewables goals can expect delays in online dates as well as premiums for projects with allocated panels,” the report stated.
US PPA prices saw an overall increase in the quarter, particularly for solar and across technologies.
Median PPA prices experienced an 18% net increase across ERCOT, MISO, PJM, and SPP, from Q2 to Q3.