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Renewable energy PPA price hikes reach ‘astounding’ levels, report finds

A growing imbalance between power purchase agreement supply and demand, along with “skyrocketing” development costs, lifted PPA prices 9.7% during the first quarter of 2022 to nearly $40 per MWh, according to LevelTen’s Q1 PPA Price Index report.

The firm said that year-over-year, that represents a 28.5% increase, which it called “astounding.”

The firm said, however, that large energy buyers don’t appear to be deterred by the rising prices and continue to pursue PPAs, which it said are delivering higher value as wholesale electricity prices also rise.

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