L R AS Published on Sunday 1 October 2023 - n° 459 - Categories:Private contract
PPA prices in Europe in August
Most European renewable PPA prices rose in August. The Euro Composite, the global index from Swiss consultancy Pexapark that averages PPA prices across different technologies and geographical areas, rose by an average of 1.4% to end the month at €56.10 ($59.80)/MWh.
The price of Italian PPAs rose the most, by 12.8%, while the price of French PPAs fell the most, by 5.7% on a monthly basis. This is because French electricity futures fell due to an increase in nuclear production in August and confidence in the security of electricity supply in winter.
Only nine new PPAs for 193 MW were announced in August, down 83% on July. This is well below any other month in 2023 so far. Transactions have averaged more than 22 per month since the beginning of 2023.
Between July and August 2023, 1.3 GW of new PPAs were registered, around 10% less than the 1.5 GW in the same period in 2022.
PV Magazine, 25 September 2023
Editor's note The price of panels has been falling for several months while the average price of PPAs has been rising. Is this discrepancy due to the length of time taken to negotiate contracts, which began twelve months ago? If this is not the case, does it mean that the developer-installers are expecting the price of electricity to rise in the medium term? Or does it mean that plant builders are finding it difficult to find new sites?
In any case, this divergence in trends is surprising.
