Developers signed 17 long-term PPAs in Europe in September – a notable increase from the nine announced in August, according to Swiss consulting firm Pexapark. This brings the year's total PPA count to 182, up sharply from the 116 recorded during the same period in the preceding year.
Germany stood out as the most active country in September 2023 with four PPAs, bringing its year-to-date total to 28 and securing its position as the second-most active country for the year. Solar was a dominant force in September, accounting for 14 of the 17 agreements. PV accounts for nearly 62% of this year's total PPAs, with 112 in total.
The Pexa Euro Composite, Pexapark's global index for average PPA prices across various technologies and regions, fell 1.8% from August. In September, most energy and commodity prices fell. The German Cal24 electricity futures contract dropped to a nearly four-month low at the end of September due to declining European gas prices. European gas storage reaching 95.6% full was perceived as bearish for the market leading into the winter season.
Expectations for greater availability of the French nuclear fleet following extended maintenance disruptions have also eased concerns about the winter, leading to lower future European electricity prices. Production is set to reach 50 GW to 52 GW in January, from 43 GW in the previous year.
Pexapark has also introduced new Green Fuel Pricing, offering daily marginal cost reference prices for renewable hydrogen and ammonia. These prices are determined based on the input costs of renewable PPAs and the risk profile associated with producing green fuels using renewable energy. The objective is to enhance certainty in Power-to-X markets, the Swiss company said.
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