PPAs

The Italian market saw a year-on-year increase in new installations as several unsubsidized solar parks came online. Most of last year’s new capacity arrived in November and December. The regions with largest volumes were big-solar magnets Apulia and Sardinia.

Portuguese energy group EDP has secured a long-term power purchase agreement for its 200 MW Los Cuervos solar plant in the Mexican state of Aguascalientes. Local offtaker Ammper has agreed to buy the electricity.

pv magazine rounds up the latest Covid-19-related stories likely to affect the world of solar and energy storage.

In a recent conversation with pv magazine, Luca Pedretti – the COO of Swiss software developer Pexapark – said that a new mindset is now required for solar and wind PPAs. The market has not completely stalled, he argued, noting that prices have already started to stabilize.

In a recent chat with pv magazine, Jason Tundermann – vice president of business development at U.S. trading advisory service LevelTen Energy – predicted a better-than-expected scenario for corporate clean-energy PPAs on the Old Continent. He said the net value of long-term PPA offers has not dropped dramatically, offering hope to corporate buyers.

In a recent conversation with pv magazine, Virginia Canazza, the CEO of Italian consultancy REF-E, outlined future scenarios for PV in the Italian PPA market. Projects will be delayed, as prices for gas and CO2 certificates are already low. Unsubsidized PV projects via PPAs might still be bankable, but it is unlikely that investors will risk dealing with small margins. Current capture prices do not justify investments and new entrants may wait for market stability.

Antonio Delgado Rigal, chief executive of energy forecasting service Aleasoft, has told pv magazine all unsubsidized solar project financing will be postponed until it is possible to make reliable price predictions again. Projects could change hands in the meantime though, thanks to deep-pocketed investment funds on the lookout for bargains.

Analysts from German energy advisory Enervis have told pv magazine power purchase agreement-linked solar projects which are under development in Europe may be delayed by the Covid-19 outbreak and new unsubsidized projects appear unlikely any time soon, thanks to the current economics.

Chinese-Canadian module manufacturer Canadian Solar and Italy’s Manni Energy have sold five PV plants with a total generation capacity of 17 MW to Dutch independent power producer Sonnedix. The Sicilian projects are among Italy’s first operational unsubsidized PV facilities.

The country’s top appeals court has dismissed the Coal Transporters Forum’s long-running effort to nullify 2.3 GW of power purchase agreements which financially troubled utility Eskom signed with solar and wind developers in the country’s fourth national tender round years ago.