Zeigo and S&P Global Platts PPA Pricing Report: European PPAs offered safe harbor during Q3 power price storm

Posted 17th November 2021 | 216 words | 2 minutes

Renewable energy platform Zeigo and energy information leader S&P Global Platts have published the latest European trends in Power Purchase Agreement pricing for Q3 2021.

Data from the Zeigo platform has been able to give S&P Global Platts a view into the European market last quarter. Key highlights include:

  • PPAs held against volatile power markets
    • PPA values have held constant through Q3 with offer prices averaging €47.61/MWh.
    • The long-term nature of PPA contract has seen the price stand strong against the short-term price volatility in the market.
    • While offer prices for PPAs are being determined by manufacturing cost and policy developments.
    • The Zeigo platform has seen a 76% increase in offers made in Q3 2021 compared to the rest of the year combined.
  • Longer terms
    • The average PPA duration of 13.2 years in Q3 was up from 11.5 years seen in Q2.
  • Strength for solar:
    • Solar PV accounted for the majority of offers in both the Spanish and UK markets.
  • Baseload premium
    • Baseload contract structures were priced higher on average compared to other structures in both the UK and Spanish market with the additional costs of balancing and shaping accounting for the difference.

To read the full Q3 2021 report, click here.

To receive updates on Zeigo’s data insights, industry event and news, please contact info@zeigo.com.