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Wind PPA Prices Rising, Solar Falling, According to LevelTen's Q1 2020 PPA Price Index

Market Insights
April 23, 2020

The LevelTen Marketplace features data and analytics on nearly every renewable energy project under development in North America, and each quarter we aggregate that data into our quarterly PPA Price Index. This report is intended to give renewable energy buyers a glimpse at PPA prices in different regions of the country, and to evaluate fluctuations over time. We always note, however, that PPA prices are not the same as PPA values; it's important to look at how a PPA is expected to settle, not just its price (LevelTen uses industry-leading analytical tools to do this for clients).

The Q1 2020 PPA Price Index report covers five independent system operator (ISO) regions in the United States, including CAISO, ERCOT, MISO, PJM and SPP, and includes a survey of renewable energy developers with projects on the LevelTen Marketplace. This quarter, we also talked to analysts at Wood Mackenzie and Energy Innovations to get their take on the data, and included three special market reports.

Here are a few highlights from the LevelTen Energy Q1 2020 PPA Price Index:

  • Across markets, an evenly-weighted index of P25 wind and solar prices increased $1.20 per megawatt hour (MWh), or 3.7% quarter-over-quarter.
  • The aggregate increase in prices was driven by an increase in prices for wind, with all major markets either flat or increasing quarter over quarter, following on a similarly broad, although less pronounced, rise last quarter. Solar prices fell slightly by 0.5%.
  • Year-over-year, P25 solar prices dropped 0.9% and P25 wind prices have risen 14.9%.
  • Aside from competition, in Q1 2020, half of the developers surveyed stated that "Required Internal Rate of Return" (IRR) and "Federal Regulations" had the most significant impact on their PPA offer prices.

In this quarter's report, you'll also find three special reports related to corporate renewable energy procurement, including:

  • A look at how COVID-19 is affecting the industry
  • How the Minimum Offer Price Rule (MOPR) in PJM could affect corporate renewable energy procurement
  • A special look at the MISO energy market, including PPA values, what types of projects are under development in the region, and how the interconnection queue is causing development challenges

Fill out the form below to download the complete report.

Beginning with the Q1 2022 PPA Price Index Reports, we have expanded these reports to provide you:

  • More PPA price data (P10, P25, P50, P75, P90) to give you a better picture of what a competitive offer looks like (both reports)
  • Projected capture price trend to help you understand how forward markets have changed (North America report)
  • Price changes by country and technology (Europe report)
  • Expanded expert analysis and much more (both reports)

Click here to learn more about the data and market intel included in the expanded PPA Price Index Reports.

LevelTen Energy

LevelTen Energy is the leading provider of renewable transaction infrastructure, delivering the marketplaces, software, 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 4,500 power purchase agreement price offers spanning 28 countries in North America and Europe. It also includes the LevelTen Asset Marketplace, which brings together over 800 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.