If you work in renewable energy, you’ve probably grappled with the setbacks the industry has faced over the past several years. Whether it’s supply chain challenges, tariff concerns, rising costs, or interconnection delays, the industry has dealt with compounding complications. Despite these market challenges, clean energy buyers and sellers persisted – and with support from LevelTen, they were able to get deals done and move project development forward.
In 2022, LevelTen Energy remained committed to our mission to accelerate the energy transition. Our teams work tirelessly to provide products and services that take the friction out of renewable energy procurement and development for buyers, sellers, advisors, and financiers. Despite the challenges the industry continues to face, this year we delivered solutions that enable project developers to move faster and buyers to procure better and faster, leading to more clean energy coming online and more deals completed.
Clean Energy Buyers Remained Committed to Procurement Targets Despite Market Challenges
From Q3 2021 to Q3 2022, PPA prices rose 34% year over year as a result of increased project development costs, increased PPA demand from corporations, utilities, governments and other organizations, and hurdles that prevented supply from keeping up with demand. Meanwhile, many organizations have quickly approaching procurement targets and emissions reduction goals that require them to procure clean energy fast. To help those organizations source PPAs that meet their needs, LevelTen hosts the world’s largest clean energy marketplace, which now delivers access to over 1,800 projects in 25 countries. In 2022, corporate offtakers requested a record high of over 25 million MWh through the LevelTen Energy Marketplace. The record-setting volume of requests through our Energy Marketplace proves that corporate buyers are still committed to their sustainability goals and trust PPAs as a solution, despite market challenges.
In response to that demand, developers continued to upload projects to the LevelTen Energy Marketplace. LevelTen’s Energy Marketplace features projects from over 800 global developers, representing 75% of all developers in North America and Europe. Right now, the Energy Marketplace delivers access to 4,500 PPA price offers and over 190 gigawatts of capacity.
Project Developers Met the Right Buyers Faster
Development costs rose across the board, from the price of commodities, to labor, to financing. Uncertainty around tariffs, supply chain, and regulation made it difficult to navigate project development timelines and estimate future costs and revenue. Developers needed to balance these rising costs and development challenges with the need to optimize revenue and sign deals with the best offtakers possible. LevelTen Energy brings buyers to their door with our Energy Marketplace
We’ve also partnered with 48 sustainability advisors and retail electricity providers, who use the LevelTen Energy Marketplace to source PPAs on behalf of their clients. That means clean energy buyers can use their preferred sustainability advisor or retail electricity provider, and benefit from access to the world’s largest PPA marketplace. With instant access to the majority of clean energy suppliers in North America and Europe, LevelTen partners and clients can quickly request proposals, evaluate responses, and execute PPAs that will help them reach their goals.
Data Insights Powered Key Decisions
In 2022, energy markets remained more volatile than ever. The many factors at play caused prices to shift week to week. Our network of developers, buyers, and advisors often asked for new, updated pricing and project insight. To answer this need, in August 2022 we launched LevelTen MarketPulse, our cloud-based software that provides instant access to real-time data and analytics based on market activity in North America and Europe.
MarketPulse delivers on-demand insights to organizations around the world, providing them with a clear view of clean energy supply, demand, and granular price and project data. Dozens of details, including contract structure and terms, make it easy to perform precise benchmarking and identify market expansion opportunities. Leaders across the renewable energy industry trust LevelTen MarketPulse to help make critical development, investment, and procurement decisions.
More Renewable Energy Asset Deals Completed
To optimize their pipeline, developers and investors need to source new projects to acquire. They also need to sell projects for the highest price when the time is right. Enter LevelTen’s Asset Marketplace, our online platform for buying and selling renewable energy assets. The Asset Marketplace saw a banner year of growth: In 2022, 186 developers participated in 18 Asset RFP and 12 Asset Auction processes, with over 1.8 GWs of generating capacity exchanged. The Asset Marketplace also expanded to Europe in September of this year and is a trusted partner of global energy leaders in the region.
By making asset sales and PPAs more efficient for developers, and delivering the data they need to make critical decisions, LevelTen Energy is accelerating development, ultimately advancing our mission.
Looking Ahead to 2023: Continued Innovation and Growth
Building on the success of the buyers, developers, and investors who used our tools this year, we have big ideas for how we’ll continue to innovate in 2023. Right now, we’re exploring new approaches to contracting and procurement that make the entire PPA process faster. We remained focused on delivering the software tools developers need to make their daily workflow more efficient, whether that's securing an offtaker or selling an asset. We look forward to sharing more on these projects soon.
Congratulations to the community of people and companies for continuing to push past all the challenges to bring new projects forward. When the headwinds continue to blow, it’s not always easy to remain hopeful. Thanks to you, we’re optimistic about 2023, the future of the industry, and our place in continuing to power the clean energy industry.