PPAs

A flat year for solar installation numbers in Japan could be seen as positive in a nation switching to new PV business models, writes Izumi Kaizuka, director of research for Japanese solar consultancy RTS Corp.

Israel’s new rules for power purchase agreements (PPA) are expected to spur development, especially in the solar sector.

Developers signed 8.4 GW of power purchase agreements (PPAs) in Europe in 2022, down 21% by volume from the preceding year, according to Pexapark’s newly published annual report. However, the Swiss consultancy notes that the 161 deals that were actually signed rose by 4.5% year on year, with Spain leading the way.

LevelTen Energy says the prices of solar power purchase agreements (PPAs) in Europe reached €76.84($82.58)/MWh in the fourth quarter of 2022.

Edison Energy says in a new report that prices increased more moderately in the fourth quarter of 2022, compared to the steep price hikes seen since 2021.

European prices for power purchase agreements rose in several countries in November, with the Polish index recording an increase of 19.4%. Portugal registered an increase of 15.5%, followed by Spain at 15.7%. Germany was the only country that recorded a monthly decline, with prices falling by 0.8%.

SNCF has agreed to buy 207 GWh of annual electricity supplies under a 25-year power purchase agreement with France’s Reden, which is building four solar plants to provide electricity to the railway operator.

Prices rose in all European energy markets between July and September, according to a new report by LevelTen Energy. Germany and Poland recorded the highest prices, while Spain and Finland recorded the lowest. Solar PPA prices rose by 15.4% – almost twice as much as wind prices.

The European Union’s much-needed emergency measures to tackle the ongoing energy crisis may have unintended consequences for the region’s renewable energy ambitions, warn analysts, but the impact on power purchase agreements will likely vary, depending on the contracts.

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.