Europe’s most competitive renewable power purchase agreement (PPA) price offers jumped 8% quarter over quarter as a result of Europe’s deepening energy crisis, according to LevelTen Energy.
LevelTen’s index series analyses over 4000 wind and solar pricing offers listed on its marketplace across 21 countries in Europe and North America.
The company said the results of this quarter’s index show that demand for renewable energy is far outstripping supply creating a substantial rise in prices.
This demand is down to a confluence of factors, including “skyrocketing electricity prices, the easing of Covid-19 lockdown restrictions and rising carbon prices”, which have spiked demand for the construction of new renewable energy generation capacity.
As a result, Europe’s P25 Index – an aggregation of the lowest 25% of wind and solar PPA offers – now stands at €48.68 per megawatt hour (MWh), rising by €3.59MWh from the second quarter.
The index revealed Europe’s P25 solar PPA prices rose 5.5% to €44.73/MWh.
The larger increase came from wind, with P25 wind PPA prices up 10.3% to €52.64/MWh, partly due to substantial wind PPA price hikes in Germany and the UK (13.4% and 16.1% respectively).