PPA

Extreme volatility and high prices recorded on energy markets, coupled with inflation, and soaring interest rates are impacting long term power purchase agreements. Still there is a way to the success and signing of contracts.

Korea Electric Power Corp. will act as a sales intermediary under South Korea’s so-called K-RE100 scheme.

In July, PPA prices rose significantly in all major European energy markets except Germany, Pexapark says in a new report.

The rise in gas and electricity prices was not reflected in PPA prices in June. The war in Ukraine continues to prevent the signing of PPAs and has caused prices to rise in most European markets, with Pexapark’s Pexa EURO index posting an overall decline of 11.3% month-on-month for June.

Developers are making hay as far as PPA prices are concerned thanks to eye-watering wholesale electricity prices which mean they can just sell their solar and wind power on the open market.

On day two of the pv magazine Roundtables Europe event, we focused on minimizing land competition for PV with dual use applications, how high efficiency n-type cells are progressing toward large-scale manufacturing at competitive cost, PV module design choices, how unsubsidized power purchase agreements can adapt and evolve, and the determining conditions for solar-plus-storage and solar-plus-hydrogen business models, among other key PV issues. The last five sessions are now available to view on demand.

Cyprus is a laggard in renewable energy development compared to many of its European neighbors. Given its reliance on oil and gas imports, the consequences are now being felt by electricity consumers on the island. However, as Ilias Tsagas reports, a combination of factors may soon provide the leverage that changes the game fast.

Spain has already approved temporary restrictions on the price of gas for electricity generation.

Power purchase agreements are ideal risk-management tools, given that electricity price volatility is the new normal and renewables uptake is a matter of urgency due to untenable Russian gas dependency. pv magazine sat down with Andy Sommer, team leader of fundamental analysis and modeling at Swiss trader Axpo Solutions, to discuss the situation of prices and PPAs in Europe.

Portugal’s PV tenders have generated headlines on the back of world-record tariffs. But the country has failed to add meaningful capacity and is now struggling to establish a workable licensing system. Merchant solar shows enormous potential to drive the market, but will politicians listen?