European Renewable Energy Marketplace PPA Pricing Trends

Figure 10. Current PPA Prices Q4 2022

€100.00 €90.00

€70.00

€60.00 €50.00 €40.00

€110.00 2022 Q1 2022 Q2 2022 Q4 2022 Q3

€80.00 €30.00 €20.00 €10.00 €0.00

Poland

Netherlands Italy Germany Spain

EU PPA Price Index

PPA Price (€/MWh)

Prices for the five markets shown reflect the median of flat, unit contingent offers inclusive of project GOs, received over time. Markets and technologies with offers from fewer than three distinct projects in a given quarter are not shown. Wind PPA price trends are not shown this quarter due to fewer than three wind projects seeking offtake in each market. The EU PPA Price Index is a weighted average of all PPA prices across Europe.

• The EU PPA Index price is up 3% from Q3. The PPA Index price represents a weighted average of all PPA prices across Europe and in Q4 was 91 €/MWh - up from 88 €/MWh last quarter.

• PPA prices continue to rise across most European markets due to a variety of factors. Project input costs remain high due to supply chain constraints and surging power prices driven by the Russian invasion of Ukraine. Rising interest rates have also led to higher costs of capital for renewable energy project development, resulting in further increases in PPA prices.

• Spain remains the most attractive PPA market. Since Q1 2022, the median solar PPA price in Spain has increased by 25%, driven by high inflation and supply chain issues. Despite this upward trend, the Spanish PPA market offers significantly lower prices than other EU markets. level, despite developers’ eagerness to apply.

• PPA prices in Poland continue to rise. Poland’s PPA prices jumped in 2022 due to an imbalance of supply and demand. High power prices, coupled with a carbon-intensive grid and growing sustainability commitments, have pushed corporates to source more renewable energy projects in Poland. However, the 10H rule, along with insufficient grid capacity, has led to a significant undersupply of projects.

€180.00

€150.00

€120.00

€90.00

€210.00 €60.00

Solar Solar Solar Solar Solar Solar

PPA prices shown above reflect flat, unit-contingent offers received in Q4 2022. Markets and technologies with offers from fewer than three distinct projects are not shown. Some offers shown may no longer be on the market.

21 ©Edison Energy. ©Altenex Energy. All rights reserved. EdisonEnergy.com