New Energy Prices Spike On Supply Chain, War Worries

LevelTen Energy’s new report reveals that European P25 solar and wind PPA prices increased 8,6% in Q1 of 2022, reaching 57€ per MWh. Year-over-year, prices have increased 27,5%

April 2022 (Level Ten Energy)

“The war in Ukraine is exacerbating Europe’s ongoing energy crisis and further fueling the unrelenting demand for renewable energy contracts from corporations. Developers are struggling to meet this demand because of supply chain, interconnection and regulatory challenges…Despite uncertainty in the market, developers and buyers say they want to build and procure more renewables – including in countries that are highly dependent on Russian natural gas…

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…[Power purchase agreement prices are up 8,6%, to 57€ per MWh… European PPA prices have increased 27,5% year-over-year…High natural gas prices, fueled by the conflict in Ukraine, are spiking wholesale electricity prices, which have already been rising for months due to the energy crisis that began in Europe last year. In response to volatile energy prices, demand for power purchase agreements [that lock in electricity prices and renewable energy supply] is skyrocketing…

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…[Voracious buyer appetite for PPAs is creating a rapidly growing imbalance between demand for renewables and supply from developers, who are struggling to build new solar and wind projects fast enough due to supply chain, interconnection and regulatory challenges…[especially in Italy, Germany, and Spain]…” click here for more

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