Renewable PPA prices continue to rise — and may do so through 2030, say LevelTen, Ascend analysts

Emma Penrod | Source: Utility DIVE | Posted 10/23/2024

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Projections by energy software and consulting firm Ascend Analytics indicate the upward trend is likely to continue, with PPA prices potentially easing in the 2030s.

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North American solar power purchase agreement prices increased by 5.4% in the third quarter of 2024 and 10.4% year-over-year, with wind power purchase agreement prices remaining steady for the quarter but rising by 14.1% compared to the previous year. Projections suggest this upward trend in PPA prices is likely to continue, potentially easing in the 2030s, due to growing demand for clean energy, supply chain challenges, and project delays.

The industry is currently experiencing shortages of viable PPAs, with prices for solar PPAs averaging $56.58/MWh and wind PPAs at $65.63/MWh as of the third quarter of 2024. While prices may begin to stabilize in the latter half of the decade, a decline is not expected until 2030 or later. Factors contributing to the price increases include new tariffs on imported solar cells, shortages of key materials and supplies, and delays caused by interconnection backlogs and supply chain challenges.

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Source Link: https://www.utilitydive.com/news/ppa-power-purchase-prices-wind-solar-levelten-ascend-analytics/730245/

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Renewable PPA prices continue to rise — and may do so through 2030, say LevelTen, Ascend analysts

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