LevelTen Q4 2019 PPA Price Index Reveals Increasing Wind, Decreasing Solar PPA Offer Prices

Market Insights
January 22, 2020

Competition Among Developers Continues to Have Largest Impact on PPA Prices

The LevelTen Marketplace features data and analytics on nearly every renewable energy project under development in North America (and more to come in Europe). On the Marketplace, potential buyers can browse through projects and see what prices per megawatt hour (MWh) the project developer is offering based on different terms of the power purchase agreement (PPA).

Every quarter, LevelTen aggregates that data into our quarterly PPA Price Index, to give renewable energy buyers a glimpse at PPA prices in different regions of the country, and to report on changes over time.

The Q4 2019 PPA Price Index 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.

Here are a few highlights from the report:

  • Wind PPA prices are increasing: In Q4, the P25 Index for wind prices rose 0.67% quarter-over-quarter to $25.90 per MWh. On a year-over-year basis the same P25 Index rose by $1.6 per MWh, or 6.6%.
  • Solar PPA prices are decreasing: In Q4, the P25 Index for solar prices dropped 0.9% quarter-over-quarter, to $27.40 per MWh. On a year-over-year basis the same P25 Index dropped by $1.34 per MWh, or 4.7%.
  • Competition is still affecting prices the most: Once again, "competition from other developers" was the largest factor impacting PPA prices; this has remained consistent every quarter since we began the survey in Q1 2019.
  • PJM and ERCOT are so hot right now: According to our survey of project developers, PJM and ERCOT were the most competitive markets in Q4.

Download the Q4 2019 PPA Price Index

Up-to-date data is always the most useful - so LevelTen publishes its PPA Price Index on a quarterly basis. However, PPA prices represent only a fraction of the data required to effectively evaluate PPA opportunities. For real-time analysis of project value and risk, cash flow modeling, price curves and more, project developers and potential renewable energy buyers are encouraged to request access to the LevelTen Marketplace by contacting LevelTen.

LevelTen Energy

LevelTen Energy is the leading provider of transaction infrastructure for the renewable energy economy. The platform delivers buyers, sellers, advisors, and financiers the automation software, data management, and standardized contracts needed to facilitate faster, safer renewable energy transactions. LevelTen’s marketplace of renewable energy power purchase agreements is the world’s largest, with more than 4,000 pricing offers spanning 21 countries in North America and Europe. LevelTen’s CFO-Ready Analytics™ automatically calculate more than a billion data points every day, providing buyers and advisors with leading-edge, real-time risk and value insights at modern market scale. Together, LevelTen and its partners share #OneGoal to accelerate the clean energy transition

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