Wind and solar power generators are achieving sharply increased prices in power purchase agreements (PPAs) across Europe, according to Level Ten Energy’s regular pricing index.
Level Ten Energy, which provides transaction infrastructure, said that in Q2 across Europe average wind and solar PPA price offers in all countries increased by 16% to €66.07/ MWh, compared with Q1, and by 47% year on year (according to its Blended European P25 Index).
Solar offers rose 19.1%, to €59.43/MWh, from Q1 and 40.2% year on year. Wind offers increased by 14% to €72.71/ MWh compared with Q1 and was up 52%, year on year.
In the UK went up by 24% (€13.65/MWh) in Q2 compared with Q1. UK solar prices in the quarter increased by 18.4%, second only to Poland, where prices shot up by 36.2.
Frederico Carita, LevelTen Developer Services Manager – Europe, said noted that government auctions affect the amount of wind power available for PPAs . “With more routes to market for developers, renewable capacity left available for corporate offtakers is reduced, increasing competition and putting upward pressure on prices,” said Carita.
LevelTen said wholesale electricity prices remain high as the threat of Russian natural gas cutoffs “significantly exacerbate an ongoing energy crisis” the continent has been enduring since early 2021. Expanded renewable auctions by European governments has increased competition for renewable capacity reducing supply available for corporate buyers and putting upward pressure on PPA prices.
LevelTen analysed data on 282 price offers from 157 renewable energy projects in 15 countries across Europe in Q2 2022. Each regional Index is for the 25th percentile, or the boundary of the lowest 25% of offer prices from project developers. The European Indices are aggregations of the individual P25 regional components.

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