LevelTen Energy, a worldwide renewable vitality market, has launched the primary LevelTen European PPA Price Index — the trade’s most complete evaluation of energy buy settlement (PPA) worth presents for renewable tasks below growth in Europe.
The Index tracks essentially the most aggressive energy buy settlement (PPA) worth presents on the LevelTen Marketplace (these within the 25th percentile), offering perception into essentially the most engaging PPA presents obtainable to renewable vitality patrons.
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This report is the primary within the trade to take an in-depth have a look at precise, transactable supply costs in additional than a dozen European nations, and supplies evaluation on costs by venture measurement, goal operation date, and expertise (wind and photo voltaic).
Key findings from the Q2 2020 Index embody:
- Spain and the United Kingdom had the very best proportion of tasks with PPA presents of the 14 international locations included on this quarter’s report, at 26% and 14% of the entire, respectively. There are many the explanation why Spain is an energetic market, together with useful resource availability (loads of solar), the supply and value of land, belief within the regulatory setting and subsidy schemes, in addition to low development prices.
- The 25th percentile (P25) pan-European index worth was €38/MWh for photo voltaic and €31/MWh for wind. This quarter’s report units a baseline: In future experiences LevelTen will observe the proportion that the indices change over time. There was important variation of the wind and photo voltaic indices amongst international locations, which might be attributed to components like regulatory circumstances, industrial operation date (COD) ranges, and regional variations in useful resource availability and growth prices.
- Wind PPAs had a wider vary of supply costs than photo voltaic. Looking on the vary between the P10 (lowest percentile) and P90 (highest percentile) supply costs, wind PPAs had practically double the unfold at €40,33/MWh versus €21,90/MWh for photo voltaic.
The quarterly LevelTen PPA Price Index, which has been printed in North America since 2018, supplies a singular instrument to trace how pan-European PPA worth presents change over time. Renewable vitality patrons and builders will now have the ability to see how macro-level components like regulatory adjustments or elevated competitors are impacting PPA supply costs, and they are often alerted to adjustments in every nation that will make the market kind of engaging for PPAs. The full textual content of the European and North American experiences might be downloaded on the LevelTen Blog.
Read our interview with Jason Tundermann, Vice-President of Business Development at LevelTen Energy, to study tendencies within the company renewable PPAs market.
“This report wouldn’t be doable with out the LevelTen Marketplace, which requires builders to submit presents primarily based on a set of ordinary PPA phrases most frequently requested by company patrons. This standardization permits patrons to make an apples-to-apples comparability amongst tasks and permits LevelTen to combination the info right into a quarterly PPA Price Index,” mentioned Jason Tundermann, vp of enterprise growth at LevelTen Energy.
“However, the LevelTen Marketplace goes far past simply showcasing PPA costs; we routinely calculate greater than a billion knowledge factors every day to provide our shoppers a deep understanding of the anticipated worth, and potential threat, of practically each PPA supply obtainable in North America and Europe.”
The report additionally explores present tendencies within the trade and this quarter all eyes had been on the COVID-19 stimulus efforts, significantly the European Commission’s “Next Generation EU” fund, which earmarked billions for renewable vitality growth efforts. According to a survey of builders included within the report, a big majority – 67% – felt that the fund would haven’t any impression on company PPA exercise.
Tom Heggarty, principal analyst for the vitality transition observe at Wood Mackenzie, agrees with respondents. “The European Council reached settlement on its COVID-19 restoration package deal in mid-July…