LevelTen’s Q2 PPA Pricing Index shows solar prices decreasing

solar wind

Renewable PPA prices have been a closely-guarded secret for years, only available to those willing to fork over thousands for the data. In their mission to make renewable energy procurement more transparent, LevelTen Energy is bucking the trend. This week, LevelTen Energy released its Q2 PPA Pricing Index. What does this mean? Buyers can finally look at the price of wholesale energy compared to what developers are charging for a better sense of what type of investment and return they are likely to see.

National Overview PPA

“PPA Prices in the LevelTen Marketplace dropped consistently across all ISOs for active projects as compared to 3 months ago. Median prices were down $1.5 per MWh across all projects,” according to Bryce Smith, CEO and founder of LevelTen. Here is a blog post where you can download the report.

Examining an even blend of wind and solar in each ISO shows prices dropped most significantly in ERCOT with median prices down $3.1 per MWh. The smallest price change was in SPP with prices down $0.55 per MWh. The largest price change for a single ISO/technology combination occurred in ERCOT wind with median prices down $5.5 per MWh to $18 and the top quartile benchmark price down $3 per MWh.

MISO solar experienced the second largest drop, coming in at $34.1 per MWh with a drop of $4.9. Solar prices are seen decreasing through 2021 COD across all ISOs.

The report contains:

• PPA pricing averages for wind and solar broken down nationally and across four key ISOs (SPP, ERCOT, PJM and MISO)

• Average project size and forward shape scalers across these geographies and energy types

• Key pricing changes between Q1 and Q2 2018

— Solar Builder magazine

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