Renewable energy platform Zeigo Power and energy information leader S&P Global Platts have published the latest European trends in Power Purchase Agreement pricing for Q1 2022. Zeigo was acquired by Schneider Electric in January 2022.
Data from the Zeigo Power platform has been able to give S&P Global Platts a view into the European market last quarter. Key highlights include:
- Q1 2022 PPA offer prices rising by 10-15% in Europe depending on the Market
- PPA prices in the UK increased by 17.6% from an average 51.64GBP/MWh in the last quarter to 60.75GBP/MWh.
- There has been more demand for shorter-term PPA deals, often coming from operational assets at a greater premium.
- The Zeigo Power platform has seen the average term decrease from 11.6 years in Q4 2021 to 9.5 years in the first quarter this year.
- Buyers have become more willing to accept higher prices to distance themselves from the spot market resulting in higher prices and less activity in the market.
- The price trends that have not changed on the Zeigo Power platform are that longer terms, great volumes and solar assets will offer cheaper contracts than the alternatives.