New Energy Project Prices Edge Up

Renewable Power Purchase Agreements More Expensive in 2021, Says LevelTen Energy Report

Austin Tannenbaum, October 15, 2021 (Environment + Energy Leader)

“Power Purchase Agreements for energy generated by renewable sources such as solar and wind [which pair an energy developer with an energy buyer] became more expensive in 2021, according to LevelTen Energy…This continues last year’s trend of rising prices. Previously, in the years 2018 and 2019, prices had been trending downward…[Average PPA] cost in the US spiked 5.4% during Q3 2021 and 19.1% relative to this point last year…

click to enlarge

LevelTen cited “regulatory uncertainty” and “a global supply chain squeeze” as two causes…Asia-based PV importers have stopped shipments to the US following tariff threats…[Outdated electricity transmission infrastructure is causing wind project] interconnection difficulties, particularly in the Pennsylvania-New Jersey-Maryland region, further reducing renewable energy supply…

click to enlarge

…[The resulting slowdown in development timelines is] making it difficult for renewable energy suppliers to keep up with “unprecedented demand” spurred by pressure on businesses to meet greenhouse gas reduction commitments…[PPAs allow renewables project owners to sell] the electricity generated to the buyer at agreed upon rates for a fixed duration of time — usually between 10 and 25 years…” click here for more

click to enlarge

Tweet