Inflation and volatility roil green PPA market
Corporations urged to lock in power prices as wind and solar costs soar
Buying green electricity via a long-term power purchase agreement offers a great way for corporations and utilities to insulate themselves from price volatility and reduce their carbon footprints. Energy-intensive companies that signed PPAs prior to the global energy crunch are sitting pretty. Some are making good margins reselling cheap power into red-hot spot markets. But prices for new deals are rising sharply in Europe and North America, as wind and solar developers contend with myriad cost pressures and uncertainties.
Renewable PPA prices are spiking in Europe and America, as supply chain constraints and permitting issues converge with skyrocketing wholesale electricity prices. LevelTen Energy, which operates a global PPA marketplace spanning 21 countries, reported an 8% hike in its index of European PPA offer prices in the third quarter of 2021.
LevelTen’s European P25 Index, which tracks the most competitive 25th percentile wind and solar offer prices, now stands at €48.68 per me…
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