LevelTen Q1 2019 PPA Price Index Reveals Increased Competition and Cost Reductions as Key Drivers in Decreasing PPA Prices

Market Insights
May 8, 2019

Every quarter, LevelTen Energy provides an in-depth look at power purchase agreement (PPA) offer price averages submitted through the LevelTen Marketplace, for both wind and solar projects, in five independent system operator (ISO) regions, including CAISO, ERCOT, MISO, PJM and SPP, in the United States. The following are a handful of key takeaways from Q1 2019:

  • Across markets, an evenly-weighted index of P25 wind and solar prices decreased $0.39/MWh, or 2.3% quarter-over-quarter.
  • Solar prices decreased in all markets except MISO, with the largest decreases coming from CAISO, PJM and ERCOT, and only moderate decreases in SPP.
  • Overall wind prices also decreased, but not as significantly as solar prices. ERCOT and SPP saw material decreases in their prices, while CAISO, MISO and PJM saw slight increases.

This quarter, in addition to reporting on how much prices have changed, we also examined why they changed. We conducted a survey of 40 utility-scale renewable energy project developers to find out which market factors impacted their offer prices the most in Q1. The results revealed that increased competition among developers and changes in engineering, procurement and construction (EPC) costs had the greatest impact.

In the developer survey, we also explored whether or not changes to federal renewable energy tax credits would affect future renewable energy project development.

Download the Q1 2019 PPA Price Index

LevelTen Energy

LevelTen Energy is the leading provider of renewable transaction infrastructure, delivering the cloud-based software, centralized supply, automated analytics, and expertise required to accelerate clean energy transactions. The LevelTen Platform is the world’s largest online hub for renewable energy buyers, sellers, advisors, asset owners and financiers. The Platform includes the LevelTen Energy Marketplace, which delivers access to more than 4,000 power purchase agreement price offers spanning 21 countries in North America and Europe. It also includes the LevelTen Asset Marketplace, which brings together over 470 renewable energy project developers and owners, and delivers the online tools and expertise they need to buy, sell and finance assets quickly. Together, LevelTen and its partners share #OneGoal to accelerate the energy transition.

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