There are a number of different approaches to settling on a PPA price.
We have partnered with BloombergNEF to provide you a report that dives into perhaps the most important consideration: how the expected future PPA price interacts with the current and projected future Levelized Cost of Electricity, or LCOE.
Looking at these two data points together is important, as there is a fundamental discrepancy in what constitutes a ‘good price’ for a PPA.
Whereas buyers typically care more about how the price they pay compares to the market, sellers care more the minimum viable cost of electricity they can offer, based on development costs.
Therefore a balance needs to be struck for both counter-parties. This is established by taking both market and cost-based pricing considerations into account.
For more insights and analysis into the data in the European markets, download our free LCOE/PPA Price report.
