Many developers rely on PPAs – long-term energy contracts – with corporations and other large-scale energy buyers in order to secure the financing required to construct multi-million dollar solar and wind projects.
www.businesswire.com/news/home/20220413005042/en/Renewable-E…
According to a new report from LevelTen Energy, the leading provider of renewable transaction infrastructure and operator of the world’s largest PPA marketplace, North American renewable energy developers are struggling to build solar and wind projects fast enough to keep up with demand because of the extremely difficult development landscape. This is leading to a shortage of power purchase agreements for corporations and other large energy buyers, which are critical to bringing new clean energy projects online and meeting corporate and federal net zero targets.
This rapidly growing imbalance between PPA supply and demand, combined with skyrocketing development costs, has raised PPA prices 9.7% during the first quarter of 2022 to nearly $40 per MWh, according to LevelTen’s Q1 PPA Price Index report. Year-over-year, this represents an astounding 28.5% increase.
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