US power consultancy LevelTen Vitality mentioned in a latest report on photo voltaic and wind energy buy agreements in Europe that the value of wind and solar energy buy agreements (PPAs) in European markets elevated by 56% year-on-year to will attain €88.88 ( $97.40)/MWh within the first quarter of this yr.
Wind energy costs have risen 35% prior to now six months as challenge builders face hurdles in acquiring permits and rising prices. Nevertheless, the state of affairs improved within the first quarter of 2023 in comparison with the fourth quarter of 2022. LevelTen Vitality was unable to provide a wind index resulting from inadequate affords out there to anonymize the information.
In the meantime, solar energy buy settlement (PPA) costs in Europe fell for the primary time in two years, apart from Spain. Regardless of this, photo voltaic costs within the first quarter of 2023 are 47% greater than within the first quarter of 2022 and 76% greater than within the first quarter of 2021.
LevelTen Vitality blamed the value drop on overcoming provide chain difficulties attributable to the pandemic and a gradual decline in inflation. Plácido Ostos, senior power analyst for Europe at LevelTen Vitality, says that “the drop in pure fuel costs and electrical energy markets will increase the downward stress on builders in order that their PPAs will stay a aggressive choice for consumers.”
In Spain, essentially the most energetic PPA photo voltaic market in Europe, costs continued to rise, with a 9.8% improve within the first quarter and a 32.2% improve year-on-year. Ostos added that “competitors for PPAs in Spain stays very excessive, which places upward stress on costs.”
Spain’s low photo voltaic PPA costs make this nation a sexy market, however Greece is at the moment tied with Spain within the variety of LevelTen Vitality Market affords with a 17.9% share. As well as, Greece is the second nation after Spain with the best photo voltaic PPA value. LevelTen Vitality says {that a} new legislation in Greece offers precedence to the connection of initiatives with a PPA.
In its first report, printed in February, LevelTen Vitality predicted billions in losses if the European electrical energy market was reformed. Nevertheless, the corporate now says that the European Fee’s ultimate power market reform proposal, printed on March 14, considers company PPAs as the primary instrument to scale back power value volatility.
The proposal requires builders taking part in a public tender to order a proportion of era to be bought by means of a PPA. The Fee additionally proposed that initiatives which have already dedicated a part of their era to a PPA will allocate one other a part of the manufacturing to “a number of potential consumers who’ve difficulties accessing the PPA market, equivalent to small and medium-sized corporations.”
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