Written by: Leonard Parker | Solar News | 23rd July
LevelTen Energy released its Q2 2021 PPA Price Index, which includes the latest wind and solar prices for North America. The report also surveyed renewable energy developers showing that energy prices will continue to rise as developers face supply and transaction barriers.
Below are the key findings from the U.S.:Renewable prices continue to climb: Solar and wind prices have risen by an average of 4.3% compared to Q1 2021, and 14.4% YoY.Solar prices increased 0.3% to $31.45 per MWh compared to Q1 2021.Wind prices increased 8.5% to $33.34 per MWh compared to Q1 2021. Supply chain constraints and barriers to asset divestiture to put pressure on developers: 73% of developers say they are increasing PPA prices as a result of the rising price of polysilicon and solar modules following the U.S. ban on imports to the Xinjiang region of China, which produces 45% of the world’s supply of polysilicon.69% of developers say it takes 6 months or longer to sell a renewable energy asset.
Why does this matter? Buyers need to act now to capture high-value PPAs: The surge in demand for renewable energy from public and private entities, combined with the supply chain squeeze, rising development costs and structural barriers to entry for new projects, will continue to put upward pressure on PPA prices.
“Much like we’re seeing supply constraints in other areas of the economy, the most desirable wind and solar projects are going fast. The key takeaway for organizations with fast-approaching emissions reductions targets is to act now to capture high-value PPAs,” said Rob Collier, Vice President of Developer Services at LevelTen Energy. “As demand from public and private entities escalates, and barriers to project grid connection and permitting remain, delaying procurement will only result in less choice in the market.”Tags: LevelTen Energy, market research