LevelTen Energy PPA Price Index: European Solar Prices Fall, Wind Prices See Modest Rise

LevelTen Energy's Q4 2024 European PPA Price Index shows a continued drop in solar prices, while wind prices have experienced a slight increase.

As per the report, solar prices in Europe have fallen steadily over the past two years, with the Market-Averaged Continental Solar Index decreasing by 2 percent in Q4. This drop reflects a broader trend of price reductions across most European solar markets, with significant declines in France, Poland, and Germany. The Nordic markets of Finland, Sweden, and Denmark have seen notable improvements, while political instability in France, marked by budgetary concerns and regulatory uncertainty, has led developers to increasingly seek corporate buyers for PPAs.

In contrast, wind power prices have risen by 1 percent in Q4 after several quarters of decline, though they remain 9 percent lower year-over-year. Wind development still faces challenges such as high turbine costs and interconnection delays, but markets like Finland are progressing well, with strong demand from industrial buyers. However, offshore wind in the Baltic Sea suffered a setback when Sweden rejected 13 offshore wind farm applications due to national security concerns.

.As per the report, the political landscape in Europe in 2024 has been complex, with the UK’s Labour Party victory promising a boost for clean energy, while political crises in France and Germany have raised concerns about the future of renewable energy policies. Despite these uncertainties, corporate demand for PPAs remains strong, driven by large buyers such as data centers, renewable hydrogen producers, and industries in need of clean energy for sustainability goals.