![LevelTen Energy counts P25 solar PPA prices to have come down in Q1/2024 by 5.9% to €67.63/MWh, from €71.84/MWh in Q4/2023. (Photo Credit: LevelTen Energy)](http://media.assettype.com/taiyangnews%2Fimport%2Fwp-content%2Fuploads%2F2024%2F04%2FLevelTen.jpg?w=480&auto=format%2Ccompress&fit=max)
LevelTen Energy says the subdued wholesale electricity prices in Europe, thanks to a mild winter, along with a stabilizing regulatory landscape were the major contributors to power purchase agreement (PPA) prices declining 5% sequentially in Q1/2024.
The 25th percentile or P25 PPA prices for solar dropped 5.9% to €67.63 ($72.54)/MWh, owing also to lower costs in the solar supply chain. In the previous quarter, it was reported as €71.84/MWh (see Solar Module Oversupply Brings Down European PPA Prices).
In its new report Q1 2024 PPA Price Index Europe, the online marketplace for renewable energy says solar PPA prices fell across the continent, barring Romania.
Solar PPA prices decreased significantly in some markets more than the others making these competitive. Sweden, for instance, saw the prices dropping by 13.2% during the reporting quarter, in Germany the decline was 12.7%, while in Spain it went down 10.5%.
LevelTen Energy's Director, European Energy Analytics, Plácido Ostos blamed the decline in solar module prices due to Chinese panels flooding the European markets as having played a role too.
The solar P25 prices in Romania, on the other hand, went up 8.6%. The market flipped from the previous quarter when its solar PPA prices declined 11%. Ostos attributes this to Romania being an emerging PPA market where developers and buyers continue to calibrate transactable prices.
Wind energy too experienced similar trends as solar during Q1/2024, as P2 PPA prices dropped by 4.3% to €94.63 ($101.5)/MWh. This technology faces challenges of limited land availability and competition from government auctions.
Nonetheless, things could change soon as the governments take note of the solar module oversupply situation. At the same time, the regulatory focus on unethical sourcing will also contribute to this change. Ostos believes that the call for government action in the PV supply chain situation, if taken, could restrict the supply of cheap components and push solar PPA prices back up.
The complete LevelTen Energy report can be purchased on its website.
Recently, LevelTen Energy also released the Q1/2024 PPA price analysis for the North American market reporting a sequential decline for both solar and wind energy (see RE PPA Prices Stabilized In North America During Q1/2024).