Zeigo and S&P Global Platts PPA Pricing Report: Power purchase agreements stand firm in eye of Q4 2021 wholesale price storm
Renewable energy platform Zeigo and energy information leader S&P Global Platts have published the latest European trends in Power Purchase Agreement pricing for Q4 2021. Zeigo was acquired by Schneider Electric in January 2022.
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:
European PPAs hold strong against a volatile power market
- Offer prices averaged GBP51.07/MWh on the Zeigo platform for the UK market, up 6% on Q3 2021. Spanish offers averaged Eur34.36/MWh and the Italian market averaged Eur81.86/MWh*, both seeing a decrease from Q3 2021.
- PPA contract lengths varied between markets but the European average, including the UK, was 12.4 years for Q4.
- Solar PV continued to dominate the Spanish market, accounting for 92.3% of PPA offers with wind making up the remaining 7.7%.
Price by structure, output
- Baseload contracts continued to have higher than average prices in Q4.
- The Italian market saw baseload offer prices average at Eur89/MWh compared to a non-baseload average of EUr80.00/MWh.
Co-op aggregation is a UK first
- Co-operative aggregated PPA tender launched on Zeigo’s platform, the first of its kind in the UK, aimed at tackling the retailer’s Scope 3 emissions.
Solar, wind costs
- The solar market is expected to quickly recover while wind turbine costs are set to remain high after increases seen in 2021 due to serious supply chain problems caused by Covid-19.
- Schneider Electric announced it had acquired Zeigo
- The acquisition of Zeigo’s machine learning algorithm and its 20-person team in London will strengthen Schneider’s advisory services.
To read the full Q4 2021 report, click here.
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*This price is based on a limited number of offers