Corporate demand, utility demand, and decreasing renewables costs seen as the primary drivers of renewables growth
Each quarter, the LevelTen Energy PPA Price Index provides an in-depth look at average offer prices for wind and solar power purchase agreements (PPAs) submitted on the LevelTen Marketplace. The report covers five independent system operator (ISO) regions in the United States, including CAISO, ERCOT, MISO, PJM and SPP. In addition, the report includes a survey of renewable energy developers with projects on the Marketplace. This quarter, LevelTen asked developers what had the largest impact on their PPA offer prices in Q3, and whether they expect prices to increase, decrease, or stay about the same in 2020.
The following are a handful of key takeaways from Q3 2019:
- While results this quarter were largely in line with what we saw in Q2 2019, developers still view competition as having the largest impact on PPA pricing. Looking back at the start of the year, 30% of developers held this view. That number increased in Q2 to 52% and has dropped back down to 35% in Q3; indicating that other factors are weighing heavily as well.
- This quarter, 35% of survey respondents thought prices would increase, while 21% thought prices would decrease (compared to an even split at 27% last quarter).
- Developers are seeing the largest opportunities for renewables growth in ERCOT and PJM.
The LevelTen Marketplace features a vast amount of data on nearly every renewable energy project under development in North America, and now, we're accepting projects in Europe. On the Marketplace, potential buyers can browse through projects and see what price per megawatt hour the developer is offering based on different terms of the power purchase agreement. LevelTen requires developers to submit offer prices based on a set of standard PPA terms most often requested by buyers. This standardization enables buyers to make an apples-to-apples comparison between projects, and it enables LevelTen to aggregate the data into our quarterly PPA Price Index - a unique position in the industry.
To see the full results and analysis, download the report below.
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