BloombergNEF Releases Corporate PPA Price Survey For Europe

Spain & Sweden Hold Cheapest Average Corporate Solar PV & Wind Power Purchase Agreement Prices In Europe, Finds BloombergNEF In Its 1st European Corporate PPA Price Survey
12:53 PM (Beijing Time) - 04. April 2020

There is no set pattern in corporate solar and wind PPA prices across Europe as BloombergNEF found in its 1st survey on this topic for the continent, since a lot of factors come into play that differ from country to country and project to project. Here it shows average prices for solar and wind. (Source: BloombergNEF)

Key Takeaways

  • BloombergNEF report on corporate PPA prices in Europe finds solar prices generally more expensive than that for wind
  • Lowest average price found for corporate PPA for solar in Europe are found in Spain at €35.30 per MWh
  • For wind power the lowest average corporate PPA price, as per the report, is in Sweden at €30.50 per MWh
  • Corporate PPA prices depend on a number of factors including capacity, length of the PPA and contract structure

Lowest average corporate power purchase agreement (PPA) prices in Europe for solar power are found in Spain at €35.30 ($38.16) per MWh, but compared to the lowest prices for wind power in the region it is a bit higher. According to Bloomberg New Energy Finance (BloombergNEF), the lowest average price level for onshore wind corporate PPA is found in Sweden at €30.50 ($33) per MWh.

In its 1H 2020 European Corporate PPA Price Survey, claimed to be the ‘first of its kind in Europe’, BloombergNEF says Spain and Sweden thus have the cheapest average corporate PPA prices in Europe for wind and solar electricity. The survey, conducted for data between January 2020 and March 2020, factors in a base case for both solar and wind corporate PPA price range across 9 markets, basis minimum and maximum prices and assesses a PPA price change as per 3 adjustment factors of capacity, term length and contract structure.

But even these parameters differ from project to project and country to country, for instance in Europe for a 15-20-year corporate PPA the premium is different than for a 10-15-year PPA.

Prices for corporate solar PPAs are general found to be more expensive than wind, and it shows big differences in renewable energy PPA prices across the continent.

Referring to the findings of the report, Helen Dewhurst, author and analyst at BloombergNEF,  said, “The very wide range of results was particularly interesting, with the gap between the cheapest PPA you might sign in Sweden and the most expensive PPA in the U.K. being over €30 ($32.43) per MWh.”

For this inaugural issue of its report, BloombergNEF took market data from online PPA platform Zeigo and fair value data from PPA pricing expert Pexapark.

BloombergNEF plans to further explore the subject in future reports as it will update the survey bi-annually adding more countries and regions.

In January 2020, BloombergNEF said the year 2019 saw more than 100 corporations in 23 countries signing up for 19.5 GW of clean energy contracts (see 19.5 GW Corporate Clean Energy Contracts In 2019).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani