In recent news, Altenex Energy reports that power purchase agreement (PPA) prices for renewable energy in Europe have continued their downward trajectory, marking a significant 15% decrease in the EU Power Purchase Agreement Index price. This index represents a weighted average of all purchase prices across Europe and has been influenced by the ongoing decline in natural gas and electricity prices.
Despite the challenges faced by the industry, buyer demand in Europe is on the rise during the second quarter of 2023. Notably, the number of renewable energy projects marketed and deals signed in Q1 2023 showed an upward trend compared to the previous year, and this growth has further accelerated this quarter, as highlighted in Altenex Energy's Q2 Global Renewables Market Update.
See also: Global Power Demand Growth Slows in 2023 Due to Energy Crisis and Economic Downturn, says IEA
Altenex Energy and its subsidiary, Alfa Energy, conduct business in Europe, while operating as Edison Energy in the United States. The continuous decline in European prices for renewable energy offers buyers a wide array of options concerning offtake volumes, technologies, price structures, and tenors, presenting promising opportunities for businesses seeking sustainable solutions.
Furthermore, buyers in Europe are moving closer to meeting major corporate sustainability milestones set for 2025 and 2030, which is expected to drive more power purchasing activities in the region.
A positive development noted in the market is the increasing number of offshore wind projects being marketed in Northern and Western Europe. Developers are actively exploring offshore wind opportunities across various geographies, responding to the ambitious renewable energy targets set by European countries.
As the renewable energy landscape in Europe continues to evolve, the falling PPA prices and the proliferation of offshore wind projects offer encouraging prospects for both buyers and the renewable energy sector as a whole.
