April 3 (Renewables Now) - The lowest average prices for corporate solar power purchase agreements (PPAs) in Europe can be found in Spain, while Sweden is the cheapest onshore wind market for corporate off-takers, BloombergNEF’s (BNEF) 1H 2020 European Corporate PPA Price Survey has found.
Solar photovoltaic (PV) power is generally pricier across Europe compared to wind, but in Spain corporate PPAs come at EUR 35.30 (USD 38.3) per MWh on average. In Sweden, corporate PPAs for onshore wind can go for around EUR 30.50/MWh.
“The very wide range of results was particularly interesting, with the gap between the cheapest PPA you might sign in Sweden and the most expensive PPA in the UK being over 30 euros per MWh,” said Helen Dewhurst, BloombergNEF analyst and the author of the report.
BNEF’s first such survey in Europe examined the range between price peaks and lows in the most common PPA scenario for wind and solar across nine markets. The survey, based on data collected in January-March 2020, has found that three main adjustment factors – capacity, term length and contract structure – can determine PPA prices on the Old Continent.
For example, European PPAs for 15-20 years come with premiums ranging between EUR 1.5 and EUR 2.5 per MWh compared to 10-15 year terms, BNEF notes. This is opposite from the US corporate PPA market where prices decline with longer terms.
While PPA prices are not set in stone, so far, publicly available information failed to provide insight into price setting trends, ranges and various adjustment factors, BNEF says. Its survey, which will be updated bi-annually, will seek to bring more data on the shades of grey in this area.
The first survey compiled data from 25 actors in Europe’s clean energy space with support from online PPA platform Zeigo and PPA pricing expert Pexapark.
(EUR 1.0 = USD 1.085)