Two years ago, we launched the LevelTen PPA Price Index, the first (and only) index of actual power purchase agreement (PPA) price offers for renewable energy projects under development in North America. The report brought an unprecedented level of clarity to the market, and quickly became a must-read for renewable energy buyers and developers each quarter. Today, we’re pleased to announce that LevelTen is again bringing that same level of innovation and transparency to the European market with the launch of our first European PPA Price Index. Rather than historical RFP pricing, or industry estimates, this report will provide the industry’s most comprehensive analysis of actual, transactable PPA price offers in Europe. You can read more about our first report in the press release.
We’ll be publishing the LevelTen European PPA Price Index alongside our North American report every quarter. To download the full reports for Q2 2020, fill out the forms below.
Here are a few highlights from each:
LevelTen European PPA Price Index Key Takeaways
- Spain and the United Kingdom had the highest proportion of projects with PPA offers of the 14 countries included in this quarter’s report, at 26% and 14% of the total, respectively. There are many reasons why Spain is an active market, including resource availability (plenty of sun), the availability and cost of land, trust in the regulatory environment and subsidy schemes, as well as low construction costs.
- The 25th percentile (P25) pan-European Index price was €38/MWh for solar and €31/MWh for wind. This quarter’s report sets a baseline: In future reports LevelTen will track the percentage that the Indices change over time. There was significant variation of the wind and solar indices among countries, which can be attributed to factors like regulatory conditions, commercial operation date (COD) ranges, and regional differences in resource availability and development costs.
- Wind PPAs had a wider range of offer prices than solar. Looking at the range between the P10 (lowest percentile) and P90 (highest percentile) offer prices, wind PPAs had nearly double the spread at €40,33/MWh versus €21,90/MWh for solar.
- According to a survey of developers included in the report, a significant majority – 67% – felt that the European Commission’s “Next Generation EU” fund would have no impact on corporate PPA activity.
Download the full European report: