Prices for renewable power purchase agreements (PPAs) fell across most markets in Europe during the third quarter, according to Edison Energy’s Q3 Global Renewables Market Update.
PPA pricing fell in Q3 2023 across European markets, with the EU PPA index price falling by 8.8% compared to Q2.
However, differences exist across the continent. Italian median price levels rose 25% from Q2 2022 to Q3 2023, while PPAs in Spain and Poland were largely unchanged.
Unlike other markets, Polish solar PPA prices experienced a slight uptick during Q3, rising from € 94/MWh to € 97/MWh.
The trend has occurred just as corporate buyers step up efforts to meet their 2025 renewable energy targets.
A wide array of risk-mitigating deal structures has emerged, as buyers seek customised solutions to meet both renewable goals and internal mandates.
Recent supply chain issues have driven up project development costs, although the industry may see some relief: Solar module prices have fallen more than 35% in recent months, although the trend may not last.
Spain continued to offer the most appealing PPA pricing.
Corporate offtakers there are finding attractive solar and wind projects, with an edge for solar.
The median price for solar projects was € 47/MWh for a fixed product, and developers have offered other pricing structures and flexibility on tenors.