LevelTen Energy registers 60 percent price increase for solar PPAs in Europe

Seattle-based international power marketing firm LevelTen Energy, Inc. is seeing significant price increases in power purchase agreements (PPAs) from solar and wind farms in Europe. For the fourth quarter of 2022, the data analysts arrive at an increase of 11.4 percent to € 76.84 ($ 82.68) per megawatt hour (MWh) in their »P25 PPA Price Index« for Europe. This represents a year-on-year increase of 60 percent.
According to LevelTen Energy solar PPA prices skyrocketed due to economic, supply chain and regulatory challenges. Solar PPA prices increased 30 per cent in the UK and 20 per cent in Italy; the highest increases in Q4. »Government auctions likely contributed to the steep price increase in the UK,« said Frederico Carita, senior manager of developer services, Europe at LevelTen Energy. »More capacity going to government auctions means less is available for corporate buyers, leading to higher PPA prices.« Demand for PPAs continues to exceed supply, he said. All PPA pricing data in the LevelTen report is based on prices offered by developers for PPA contracts, not on PPA deals made.
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