Solar PPA prices flat, wind prices continue to rise: LevelTen Energy

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During the second quarter, wind power purchase agreement (PPA) prices increased by 7%, while North American solar PPA costs rose by 3%, reports LevelTen Energy. Despite a modest rise in solar PPA prices this quarter, wind PPAs have become more expensive, with a 13.5% year-over-year average price increase for North American wind-based PPAs.

Noted as increasingly pricier, wind projects are facing upward price pressures, while the demand for wind PPAs remains steady, especially from tech companies seeking clean energy for data centers. However, challenges such as interconnection delays, permitting issues, land scarcity for new projects, and rising insurance costs due to severe weather events contribute to the rising costs of wind energy. In contrast, solar PPAs have a less certain price trajectory, influenced by factors like government incentives and potential tariff threats.