LevelTen Energy, the leading provider of transaction infrastructure for the energy transition, today releases the findings of the report, Italy’s Renewable Energy Renaissance, compiled by its team of energy industry analysts.
LevelTen Energy’s Q4 European PPA Price Index Report showed a continued decline for solar prices and a slight increase for wind power purchase agreements (PPAs) in Q4 of 2024. Key takeaways from this quarter’s report: Solar Prices Continue to Drop In Q4 European solar PPA prices have been on a steady declining trajectory over the last two years, as the energy sector continues to return to relative normalcy following the continent’s energy crisis. In Q4, LevelTen’s Market-Averaged Continental Solar Index declined by 2% compared to Q3, with price declines in nearly every solar market featured on our Q4 Index. Q4 Sees Wind Prices Temper Europe’s wind sector continues to regain its footing after a difficult few years of supply chain snarls, inflationary challenges, and financing turbulence. After dropping for several consecutive quarters, LevelTen’s Market-Averaged Continental Wind Index nudged up by 1% in Q4. On a year-over-year basis, Market-Averaged wind prices have gone down by 9%. A Mixed Political Picture 2024 was a complex year for European politics. The Labour Party’s victory in the UK seems poised to usher in an exciting new chapter of clean energy development there. Already, the removal of the country’s longstanding “de facto ban” on onshore wind, paired with more ambitious climate policies more broadly that should support clean energy buildout there. In France, political tides seem to be turning in a different direction. A no-confidence vote in December forced the resignation of Prime Minister Michel Barnier, as budgetary concerns create worries about the financial viability of the country’s renewable subsidy scheme; compelling more developers there to explore PPA options. December also brought a no-confidence vote in Germany, leading to the dissolution of Chancellor Olaf Scholz’s coalition and prompting a snap election in February. Needless to say, political crises in the EU’s two biggest economies is cause for concern, and is contributing to a heightened degree of regulatory uncertainty. Europe’s PPA Market Going Strong For corporate renewable energy buyers in Europe, the continuing trend of moderating PPA prices is welcome news. With European wholesale electricity markets growing more volatile as the energy transition evolves, fixed-price contracts provide financial certainty for corporate buyers, along with a steady stream of the GOs they need to reach their Scope 2 emissions goals. Subscribers of the PPA Price Index can log in to the LevelTen Platform to read the full report. Not a subscriber? Contact us today to get access. About LevelTen Energy LevelTen Energy delivers the marketplaces, software, automated analytics, and expertise required to accelerate clean energy transactions. The LevelTen Platform is the world’s largest online hub for renewable energy buyers, sellers, advisors, asset owners and financiers. The Platform includes the LevelTen Energy Marketplace, which delivers access to thousands of power purchase agreement price offers spanning 28 countries in North America and Europe. It also includes the LevelTen Asset Marketplace, which brings together over 850 renewable energy project developers and owners, and delivers the online tools and expertise they need to buy, sell and finance assets in North America and Europe. Together, LevelTen and its partners share #OneGoal to accelerate the energy transition. Visit LevelTenEnergy.com to learn more.
LevelTen Energy, the leading provider of transaction infrastructure for the energy transition, today releases the findings of the report, Italy’s Renewable Energy Renaissance, compiled by its team of energy industry analysts. The report’s findings include:
Regulatory shifts are changing the development outlook.
- In July 2021, the Italian government passed Act No. 108, “Decreto Semplificazioni Bis” into law, which was designed to simplify and streamline approval processes for renewable energy plants. The bill’s goal was to reduce the standard approval process’ average duration from around 1,200 days down to 250 — an ambitious target that, if reached, would help significantly reduce development timelines.
- On 2 February, 2024, Decree Law No. 181 was passed into law, bringing “urgent provisions for the energy security of the country”, and promoting “the use of renewable energy sources”. In addition to supporting the development of a domestic supply chain for floating offshore wind in Italy’s south, the law also introduced impactful measures that should simplify environmental authorisations, support investments in grid infrastructure, and open up more land for renewable development.
- In total, these laws hold much promise for alleviating development headwinds across permitting processes, environmental reviews, land constraints, and more. However, an ongoing debate around land use continues to add complexity to Italy’s regulatory landscape. A recent decision banning ground-mounted PV on land classified as agricultural (nearly 42% of Italian land) may constrain offtake opportunities for corporate buyers and raise development costs.
Buyer appetite for Italian renewable capacity remains strong.
- Regulatory and market flux aside, one thing is clear: if Italy is to reach its ambitious clean energy goals, renewable developers have a lot of work to do in the coming years — and undoubtedly, corporate buyers will have an integral role to play in supporting this development.
- As permitting and interconnection reforms begin to take effect, there is reason to be hopeful that more project supply will become available to corporate buyers interested in Italian procurements. With over 3 million MWh of cumulative demand tracked on the LevelTen Platform, it is clear that buyer interest in the country is abundant.
PPA buyers can help drive Italy’s energy renaissance
- LevelTen Energy implores PPA buyers to take full advantage of this present moment as European electricity markets experience some degree of normalcy following the continent’s energy crisis and the disruptive impacts of the war in Ukraine. PPA buyers should go to market now to lock in good deals before demand grows further.
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About LevelTen Energy
LevelTen Energy is the leading provider of transaction infrastructure for the energy transition, delivering marketplaces, software, data and analytics that accelerate carbon-free energy deals and decisions. The LevelTenPlatform is the global hub for carbon-free energy transactions and insights, connecting over 1,000 project developers in 32 countries with a vast network of corporations, advisors, traders, financiers and other organisations seeking to advance carbon-free energy development. The Platform includes marketplaces for power purchase agreements, clean energy projects, and tax credit transfers, and will soon support the trading of granular certificates. In addition to building and operating marketplaces, LevelTen Energy provides automated analytics and fresh data to inform key decisions for all market participants, as well as software to help users manage business before, during and after transactions. Visit LevelTenEnergy.com to learn more.