US think tank Edison Energy has published its latest report on the global renewables market, which indicates that the average price of power purchase agreements (PPA) across Europe and the US has fallen from Q1 to Q2 of this year.
While the researchers noted that concerns remain over the regions’ solar supply chains, and the cost of products necessary for renewable power generation, they are generally positive about the implications of falling power prices, and how PPA could become more attractive to potential power producers and buyers in the long term.
Falling prices in the US
When it comes to US PPA market, the report’s authors wrote, “Project developers are beginning to receive more clarity on how to qualify for tax credits, enabling them to revise their assumptions on the cost to meet these requirements. This has given renewable buyers more confidence in PPA prices going forward.”
