LevelTen’s European solar PPA index rose to €68.57/MWh in Q3

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US energy consultancy LevelTen Energy said in a recent report on solar and wind power purchase agreements in Europe that prices increased by 11.3% to €73.54 ($72.37)/MWh in the third quarter of 2022, up 51% year on year.

“This trend was driven in part by steep solar price surges in markets such as Germany, Greece, Hungary, Italy and the UK,” LevelTen said.

Solar PPA prices rose 15.4% to €68.57/MWh in the third quarter, with wind prices increasing by 8% to €78.50/MWh. Poland and Germany recorded the highest solar PPA prices, followed by the United Kingdom, Hungary, Greece, and Italy. Spain and Finland had the lowest prices of the European countries that were surveyed.

“Italian and Greek P25 solar prices [rose] by 28.2% and 32.1%, respectively,” said Gabriel Umana Gomez, customer success manager Europe for LevelTen. “The number of Greek solar offers continues to grow on our Marketplace with each passing quarter, increasing overall liquidity and producing a P25 price that is likely more indicative of the Greek market as a whole.”

European energy markets did not experience any price decreases in solar PPAs, but demand remained strong. Spain, Greece, and the United Kingdom had the highest supply of PPAs in the third quarter, mostly driven by solar.

LevelTen said it expects more supply to come from Eastern Europe, as Romania’s renewable energy sector is reportedly maturing at a rapid pace. Earlier this year, the Romanian Ministry of Energy launched a tender for the deployment of 950 MW of renewables capacity.

The consultancy has also called for more clarity from EU member states on their response to the €180/MWh revenue cap on solar and wind.

“We have seen this uncertainty cause some offtakers to pause on PPA activity until 2023, when hopefully more clarity emerges,” said Flemming Sørensen, VP Europe for LevelTen.

In July, Pexapark’s renewable PPA index prices surpassed 100/MWh for the first time.

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