L R AS Published on Sunday 12 April 2020 - n° 317 - Categories:purchase/sale contracts, European countries
Pandemic halts European procurement market
A new mindset is now required for solar and wind power purchase agreements (PPAs). The market is not completely at a standstill,
according to the director of Pexapark (Swiss software). There are long-term price thresholds for PPAs that allow for new investments.
In Spain, developers have benefited from price levels between €35 / MWh and €37 / MWh in 10-year solar PPAs, while in Sweden 10-year wind PPAs have traded around €30 / MWh, two countries that are the most important in terms of transactions. This has been the case for a decade in the Nordic countries.
Contracts are now only concluded at the end of construction. What comes first is the price, then if the contract is adapted to the project.
Electricity prices had been falling for some time in many markets. Spain has seen prices ranging from €32 to €34 for long-term contracts. Now the uncertainty is high, but this will pass. There is already a stabilisation and some price rebounds.
PV Magazine of 8 April
