High development costs and an unstable regulatory environment have increased average solar power purchase agreement (PPA) prices in Europe to a new high of €76.84 (US$82.4)/MWh in Q4 2022.
Sky-high electricity prices and an increasing urgency to curb fossil fuel led to a surge in European solar additions last year. Jules Scully charts how the continent’s ongoing energy crisis is affecting EU renewables policy and PPA appetite.
In early December, the Dutch government announced a €130/MWh revenue cap on solar and wind generation. The decision to lower the cap draws eyes, and potentially spells trouble for the country that installed Europe’s fourth largest solar capacity in 2022.
The government of the Netherlands announced a €130/MWh (US$136) profit ceiling for solar and wind generation this week as part of the EU’s established ‘intramarginal levy’ scheme to curb excessive energy profits due to rising costs.
A patchwork implementation of the EU’s power revenue cap could stall renewables development and dent investment, according to LevelTen Energy, a power purchase agreement marketplace operator.
Plans for a temporary revenue cap on solar PV assets across the European Union (EU) could dent investor confidence in renewables, experts have warned, amid concerns that individual member states may be able to set lower caps specific to different technologies.
Solar PV plants across the European Union could be subject to a temporary revenue cap under new proposals aimed at helping energy consumers reduce their bills.
Measures related to windfall revenues of power generators in Europe should target actual profits only and exempt renewables that do not make windfall profits, SolarPower Europe (SPE) has said.
Spain will introduce a windfall tax on power companies and banks from next year to fund measures designed to help Spaniards cope with soaring inflation.
