Solar Open Access to Gather Steam in Uttar Pradesh as Data Centers Mushroom

Daily News Wrap-Up: PM-KUSUM Achieves 27% of Target as Sunset Date Nears

Great British Energy Unveils Plan for 15 GW Clean Energy Installation by 2030

EDF Weighs US Renewables Exit as Policy Support Dwindles

AMPIN Energy Secures $50 Million from Dutch Development Bank FMO

CTUIL Issues Draft Norms for Change in Control of Grid Connectivity

JK Cement Increases Shareholding in 22 MW Captive Wind Project

Japan Awards 75 MW of Solar Projects to 16 Companies in 26th Auction

TPG and MAVCO Form Vayona Energy for Wind Turbine Manufacturing

Italy Awards 7.7 GW Solar, 940 MW Wind Projects Under FER X Transitory Program

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/10/amazon_polly_85815.mp3?version=1761137678">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>Solar power purchase agreement (PPA) prices in North America rose by 4% quarter-over-quarter in the third quarter (Q3) of 2025, per <a href="https://www.leveltenenergy.com/" target="_blank" rel="noopener">LevelTen Energy’s</a> new report.
This increase is driven by rising material costs, federal tariff measures, and <a href="https://www.mercomindia.com/us-treasury-guidance-tightens-renewable-energy-tax-credit-rules" target="_blank" rel="noopener">changes</a> to clean energy tax credit timelines under new legislation.
The Q3 data covers virtual PPA offers uploaded between June and September 2025, representing financial settlements in the real-time wholesale energy markets of AESO (Alberta Electric System Operator), CAISO (California ISO), ERCOT (Electric Reliability Council of Texas), ISO-NE (ISO New England), MISO (Midcontinent ISO), PJM Interconnection, and SPP (Southwest Power Pool).
Solar PPA Prices
The solar PPA prices in Q3 2025 were influenced not only by tax credit timelines but also by rising costs of essential materials. P25 solar PPA prices averaged $59.77/MWh, up 4% from Q2. Key drivers include tariffs on steel, aluminum, and copper, which increased construction and EPC costs.
Developers are accelerating project timelines to “safe harbor” as many projects as possible before the July 2026 deadline, helping preserve eligibility for federal tax credits. The surge in construction activity is increasing the supply of tax-credit-eligible projects for buyers, but it also raises PPA prices in the short term.
In addition, anti-dumping and countervailing duties investigations into solar manufacturers in India, Indonesia, and Laos, combined with pending foreign entity of concern rules, are expected to elevate compliance and material costs further.
Developers have started incorporating price adjusters and indexation clauses in PPA contracts, allowing pricing adjustments post-signing if tariffs, trade investigations, or supply chain issues arise. These measures reflect a shift in the market, with developers increasingly sharing risk with corporate buyers.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-US-Solar-and-Wind-image.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-85816 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-US-Solar-and-Wind-image.png" alt="LevelTen US Solar and Wind" width="752" height="538" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-US-Solar-and-Wind-image.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-US-Solar-and-Wind-image-300x215.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-US-Solar-and-Wind-image-650x465.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-US-Solar-and-Wind-image-624x446.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-US-Solar-and-Wind-image-600x429.png 600w" sizes="auto, (max-width: 752px) 100vw, 752px" /></a>
Wind Market
The wind PPA prices increased by nearly 5% during Q3 2025. P25 wind prices averaged $74.69/MWh, marking a 14% rise year over year. Developers face tighter federal review processes, particularly for projects on public lands or private lands requiring federal review, with some previously approved projects being revoked.
Section 232 tariffs and potential levies on critical minerals add to project costs, making PPAs more expensive. Wind developers are seeking risk-sharing arrangements with buyers to close deals, reflecting the combined pressures of regulatory scrutiny and rising material expenses.
Section 232 tariffs impose steep 50% duties on aluminum, steel, and copper &#8211; key materials for solar and wind projects, as well as for grid infrastructure such as transformers and electrical wiring. This additional 50% tariff, applied on top of existing country-specific duties, has significantly increased the cost of essential components used across the renewable energy sector.
Despite challenges, wind remains highly attractive to corporate buyers, particularly technology companies and data center operators seeking clean energy at night. While developing new wind projects may face hurdles in the near term, strong buyer demand is expected for developers who can successfully bring new capacity to market.
Policy Changes
The PPA price increases were driven by the rush to qualify projects under the One Big Beautiful Bill Act, signed on July 4, 2025. The legislation shortens the federal tax credit qualification window, requiring projects beginning before July 4, 2026, to operate within four years, and projects starting after that to be operational by 2028.
Treasury guidance issued on August 15, 2025, eliminated the previous “5% Safe Harbor Rule,” requiring developers to meet the “physical work test” through tangible progress such as foundation excavation, module installation, or transformer manufacturing to qualify for Investment tax credits (48E) and production tax credits (45Y).
Developers must act quickly to secure tax credits, as missed deadlines could result in increased project costs and reduced returns.
An ongoing investigation by the Trump Administration into polysilicon imports could further raise costs for solar projects, alongside a recent anti-dumping and countervailing duty investigation into PV component manufacturers in Indonesia, India, and Laos. Collectively, these trade measures are contributing to rising solar prices, prompting developers to seek cost-sharing arrangements with buyers to offset higher capital expenditures and development risks stemming from evolving trade policies.
Regional Impacts
The PJM Interconnection region reported a record-high capacity auction clearing price of $329.17/MW-day in July 2025, up 22% year over year, driven by high data center demand and tight capacity supply.
Despite these challenges, companies such as Origis Energy, operating 1 GW of solar and storage, 3 GW under construction, and 25 GW in development, remain active in the market.
A LevelTen&#8217;s report for the first quarter of 2025 stated that PPA prices for renewable energy <a href="https://www.mercomindia.com/us-and-europe-ppa-prices-for-solar-and-wind-stable-in-q1-2025" target="_blank" rel="noopener">remained</a> largely stable across North America.
In February this year, solar power purchase agreement prices in the U.S. <a href="https://www.mercomindia.com/us-solar-ppa-prices-hold-steady-in-q4-2024-wind-prices-rise-3-3" target="_blank" rel="noopener">rose</a> by a modest 0.3% quarter-over-quarter in the fourth quarter of 2024, according to LevelTen’s Market-Averaged Continental Index.

US Solar PPA Prices Jump 4% in Q3 Amid Tariffs and Tax Shifts

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/10/amazon_polly_85789.mp3?version=1761127529">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>Solar power purchase agreement (PPA) prices in Europe declined 2.4% quarter-over-quarter in the third quarter (Q3) of 2025, according to a report by <a href="https://www.leveltenenergy.com/" target="_blank" rel="noopener">LevelTen Energy</a>. Wind PPA prices remained stable, decreasing only 0.1%.
The market-averaged P25 prices were €58.21 (~$67.93)/MWh for solar, €88.56 (~$103.37)/MWh for wind, and €73.38 (~$85.61)/MWh for blended renewables. Data were sourced from 280 offers across 215 projects in 19 countries, including new additions such as Portugal to the Wind Index.
The report said Europe’s solar market is affected by oversupply and negative wholesale prices, particularly in Germany and Spain, suppressing revenues for standalone solar projects.
In Q2, P25 prices in Europe <a href="https://www.mercomindia.com/solar-ppa-prices-stagnate-in-north-america-drop-5-in-europe-levelten" target="_blank" rel="noopener">fell</a> by over 5% after three quarters of stable trends.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-Europe-Market-image.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-85790 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-Europe-Market-image.png" alt="LevelTen Europe Solar and Wind Market" width="940" height="662" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-Europe-Market-image.png 940w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-Europe-Market-image-300x211.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-Europe-Market-image-768x541.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-Europe-Market-image-650x458.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-Europe-Market-image-624x439.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/10/LevelTen-Europe-Market-image-600x423.png 600w" sizes="auto, (max-width: 940px) 100vw, 940px" /></a>
Industrial demand has been weaker than expected in several countries, though data center energy consumption in Ireland, Finland, and Spain continues to drive demand for renewable PPAs. Hybrid PPAs, combining solar or wind with battery energy storage systems (BESS), are increasingly being adopted in Europe to mitigate price volatility and revenue cannibalization.
Solar PPA prices in Europe showed divergence across regions. Ireland posted the highest P25 solar prices due to ongoing high demand from rapidly expanding data centers. Portugal recorded the lowest prices, with developers offering contracts below Spanish levels to remain competitive amid overgeneration.
Overall, the European solar market continues to struggle with oversupply, price cannibalization, and negative wholesale electricity periods, particularly in Germany, where more than 100 GW of solar capacity is installed.
Developers in Germany are increasingly turning to hybrid PPAs with BESS to stabilize revenue streams. Current storage capacity in Germany is estimated at 20 GWh, while projections suggest that 100 GWh will be required by 2030 to meet system flexibility needs and support industrial demand.
Europe Wind Market 
Europe’s wind PPA market remained largely stable during Q3 2025. Finland recorded the lowest P25 wind prices, while Italy reported the highest. France re-entered the wind index for the first time since Q2 2024, with corporate buyers seeking alternatives following the end of the nuclear access program, resulting in a €20 (~$23.26)/MWh reduction in wind P25 prices compared with 15 months prior.
Across seven markets reporting adequate offers, the wind sector has demonstrated resilience compared with solar, benefiting from government policy liberalizations, new project pipelines, and recovery from pandemic-era permitting delays.
Developers, including IGNIS Energy, which operates across ten countries with 30 GW of solar, wind, and storage projects and 10 GW under management, continue to face challenges such as permitting bottlenecks, grid constraints, and falling PPA prices.
Policy and Regulatory Context
Several policy developments impacted the European market. In France, political instability marked by a second government collapse within a year has increased uncertainty around renewable energy policy, encouraging reliance on PPAs as a more secure procurement option.
The UK retained a single national electricity price, providing certainty for developers and investors.
Finland’s proposed Land Use Act, which mandates wind turbine setbacks eight times turbine height, poses potential constraints for new wind projects. These dynamics shape investment strategies and PPA structures across the continent.
Across Europe, hybrid PPAs combining wind, solar, and storage are gaining traction, particularly in Germany, Spain, and France, as buyers seek revenue stability amid price cannibalization and policy uncertainty.
The European wind and solar PPA markets <a href="https://www.mercomindia.com/us-and-europe-ppa-prices-for-solar-and-wind-stable-in-q1-2025" target="_blank" rel="noopener">remained</a> stable in Q1 2025. Solar PPA prices in the Market-Averaged Continental Index rose by just 1% from the previous quarter, while wind PPA prices increased by 1%.

Solar PPA Prices in Europe Fall 2.4% in Q3 on Weak Industrial Demand

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/05/amazon_polly_79663.mp3?version=1747631628">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>When the PM Surya Ghar Muft Bijli Yojana was <a href="https://www.mercomindia.com/urgent-measures-dcr-module-shortage-slows-surya-ghar" target="_blank" rel="noopener">launched</a>, it carried a bold promise. The goal was to help 10 million Indian households become prosumers through rooftop solar systems by March 2027.  However, over a year into its rollout, the program faces a critical roadblock. A severe shortage of solar modules that meet Domestic Content Requirements (DCR) continues to hinder its progress and threaten the realization of its long-term objectives. The continuing module supply crunch is slowing down rooftop installations, disrupting supply chains, halting vendor operations, and delaying approved projects in several states. Industry insiders describe the problem as systemic, affecting every level of implementation. Without timely corrective measures, the program’s ambitious goals could gradually drift further out of reach.
REC Power Development and Consultancy (RECPDCL) <a href="https://www.mercomindia.com/recpdcl-invites-bids-for-transmission-system-augmentation-in-karnataka" target="_blank" rel="noopener">invited</a> bids to establish an interstate transmission system in Davanagere and Chitradurga, Karnataka, to integrate renewable energy generation. The project will be executed on a build, own, operate, and transfer basis. Bids must be submitted by July 18, 2025. Bids will be opened on the same day. Selected bidders must install four 500 MVA, 400/220 kV ICTs (5th-8th) at Davanagere pooling station (PS), along with associated 400 kV and 220 kV ICT bays. They must also augment Davanagere/Chitradurga PS with one 1500 MVA, 765/400 kV ICT, complete with its 765 kV and 400 kV ICT bays.
Tata Power, an integrated power company, <a href="https://www.mercomindia.com/tata-powers-hits-record-revenue-of-%E2%82%B9645-04-billion-in-fy-2025-on-higher-sales" target="_blank" rel="noopener">reported</a> a profit after tax of ₹13.06 billion (~$152 million) in the fourth quarter (Q4) of the financial year (FY) 2025, a 25% year-over-year (YoY) growth from ₹10.46 billion (~$122.3 million). The company’s quarterly revenue stood at ₹172.38 billion (~$2 billion), growing 7% from the same period of the previous year. Higher power sales from all generating projects, ramp up of all solar module and cell lines in Tirunelveli, and significant strides in solar rooftop business pan-India contributed significantly to the overall growth.
ReNew Energy Global (ReNew), a decarbonization solutions company, <a href="https://www.mercomindia.com/renew-to-set-up-2-8-gw-hybrid-renewable-energy-project-in-andhra-pradesh" target="_blank" rel="noopener">announced</a> it will invest approximately ₹220 billion (~$2.5 billion) to set up a hybrid renewable energy project in the Anantapur district of Andhra Pradesh. The project would have a capacity of roughly 2.8 GW, including 1.8 GW of solar and 1 GW of wind capacity. It will also include a battery energy storage system with a capacity of 1.8 GW. ReNew claims this project will be one of the country’s largest renewable energy complexes at a single location.
Power purchase agreement prices for renewable energy <a href="https://www.mercomindia.com/us-and-europe-ppa-prices-for-solar-and-wind-stable-in-q1-2025" target="_blank" rel="noopener">remained</a> largely stable across North America in the first quarter of 2025, according to a report by LevelTen. The report said that PPA prices for solar energy increased marginally by 1%. In North America, P25 prices remained largely stable among most independent system operators. P25 refers to the 25th percentile of PPA prices. The Electric Reliability Council of Texas continues to dominate as the most competitive and robust market due to increasing electricity demand.
U.S.-based solar tracker firm Nextracker <a href="https://www.mercomindia.com/nextracker-beats-revenue-eps-expectations-q4-fy25" target="_blank" rel="noopener">reported</a> a revenue of $924.34 million in the Q4 FY 2025, a 25% YoY growth from $736.51 million. The revenue exceeded analysts’ expectations by $95.89 million. The company’s earnings before interest, taxes, depreciation, and amortization  increased 52% YoY to $242.49 million. The company’s profit was $156.79 million, reducing 23% from $205.16 million in the same period the previous year.
The Romanian Ministry of Energy <a href="https://www.mercomindia.com/romania-announces-auction-for-3-4-gw-solar-and-wind-projects" target="_blank" rel="noopener">announced</a> the second auction under the State Aid Scheme through contracts for difference (CfD) to increase renewable energy production from onshore wind and solar sources. The auction is for a capacity of 3,472 MW, with 2,000 MW for onshore wind and 1,472 MW for solar energy projects. The maximum strike prices are set at €80 (~$89.72)/MWh for wind and €73 (~$81.87)/MWh for solar projects. The first CfD auction was launched in September 2024, including 500 MW of solar and 1 GW of wind capacity. The current auction was issued after the success of the first round, which allocated 432 MW of solar capacity.

Daily News Wrap-Up: Intervention Needed as DCR Module Shortage Slows PM Surya Ghar

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/05/amazon_polly_79615.mp3?version=1747393946">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>Power purchase agreement (PPA) prices for renewable energy remained largely stable across North America in the first quarter (Q1) of 2025, according to a report by <a href="https://www.leveltenenergy.com/" target="_blank" rel="noopener">LevelTen</a>. The report said that PPA prices for solar energy increased marginally by 1%.
In North America, P25 prices remained largely stable among most independent system operators. P25 refers to the 25th percentile of PPA prices. Electric Reliability Council of Texas (ERCOT) continues to dominate as the most competitive and robust market due to increasing electricity demand. California Independent System Operator (CAISO), PJM Interconnection (PJM), and Alberta Electric System Operator (AESO) exhibited moderate price activity.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-1-for-uploading.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-79618 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-1-for-uploading.png" alt="US Europe Q1 reports " width="752" height="475" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-1-for-uploading.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-1-for-uploading-300x189.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-1-for-uploading-650x411.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-1-for-uploading-624x394.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-1-for-uploading-600x379.png 600w" sizes="auto, (max-width: 752px) 100vw, 752px" /></a>
These results mark the third consecutive quarter of flat pricing, suggesting a maturing and stabilizing market after the volatility seen in previous years.
The report said that developers across these regions have recalibrated their capital expenditure (CapEx) expectations, leading to more consistent pricing offers and increased readiness to engage with buyers.
The stability in North America is driven by improved energy supply, normalization of economic expectations, and the anticipation of rising long-term electricity demand. The PPA price shows 339 offers from 287 renewable energy projects in eight markets throughout the U.S. and Canada.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-2-for-uploading.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-79619 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-2-for-uploading.png" alt="US Europe Q1 reports " width="602" height="375" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-2-for-uploading.png 602w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-2-for-uploading-300x187.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-2-for-uploading-600x374.png 600w" sizes="auto, (max-width: 602px) 100vw, 602px" /></a>
ERCOT is expected to perform strongly in the U.S. PPA market due to increasing consumption and grid expansion. CAISO’s prices are influenced by solar buildout saturation, while PJM remains attractive for buyers due to its liquidity and project diversity.
In Canada’s AESO market, stable supply and improved permitting processes support a steady pricing trend.
Wind Prices Decline Amid Stable Demand 
In Q1 2025, wind PPA also rose slightly by 1%.
LevelTen Energy’s Market-Averaged Continental Index reported a 5% drop in P25 wind PPA prices compared to the previous quarter. This downward trend was primarily driven by falling prices in the Midcontinent Independent System Operator (MISO) and Southwest Power Pool (SPP) regions.
Despite persistent policy uncertainty, the decline in wind PPA prices may appear counterintuitive, especially with demand for renewable energy remaining high. However, according to the report, the wind sector has recently re-established equilibrium, including inflation, rising interest rates, and supply chain disruptions after several years of economic pressures.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-3-for-uploading.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-79620 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-3-for-uploading.png" alt="US Europe Q1 reports " width="602" height="356" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-3-for-uploading.png 602w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-3-for-uploading-300x177.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Europe-Q1-reports-image-3-for-uploading-600x355.png 600w" sizes="auto, (max-width: 602px) 100vw, 602px" /></a>
It said the unclear impacts of current and future policy developments may present a timely opportunity for buyers to secure favorable PPA deals.
Demand for wind energy continues to be robust, particularly from technology companies aiming to power expanding data center infrastructure. Wind energy’s higher capacity factors and attractive production profiles make it a viable option for these power-intensive operations.
In Q1 2025, wind PPA prices varied widely across regions, with PJM continuing to record the highest prices in North America, a trend that has persisted over the past year. While overall market prices remained relatively stable year-over-year, PJM faced several development challenges.
State policies like those in Ohio allow local jurisdictions considerable authority to block project development, increasing uncertainty. Additionally, limited land availability and a congested interconnection queue contribute to higher regional development costs.
Although recent reforms to PJM’s queue-study process show signs of alleviating grid access bottlenecks, the long-term effectiveness of these changes remains to be seen.
Meanwhile, MISO witnessed another drop in wind PPA prices this quarter.
LevelTen’s Q1 PPA Price Index dataset reveals that several new PPA offers with commercial operation dates in 2029 entered the market this quarter. These offers, priced at the lower end, significantly drove the continued downward trend in MISO’s wind PPA prices.
European Market
The European wind and solar PPA markets remained stable in Q1 2025. Solar PPA prices in the Market-Averaged Continental Index rose by just 1% from the previous quarter, while wind PPA prices increased by 1%. Europe’s renewable energy sector has entered a pricing maturity and predictability phase.
Solar PPA activity continues to be strong in established markets like Spain, Germany, and Italy. However, emerging markets such as Poland, Romania, and Finland are making notable progress.
Poland’s expanding solar capacity has increased market competition, leading to localized price reductions. Ireland also showed growing solar PPA offers, highlighting development to support its growing data center industry.
The wind sector in Sweden remains competitive, offering some of the lowest P25 PPA prices across Europe. Poland’s wind market is seeing renewed momentum due to regulatory reforms, including reducing turbine setback requirements from 700 to 500 meters, freeing up over 30,000 sq. km of land for new wind projects.
Spain, France, and Poland are also actively expanding their offshore wind segments, with auctions and incentives supporting the trend.
Despite past volatility, the wind and solar PPA markets have stabilized significantly. Developers have adapted to evolving capital expenditure conditions and are ready to contract with qualified buyers. The report encourages buyers to act quickly to secure favorable terms, as rising demand for PPAs could tighten availability.
Regulatory and Political Drivers
Regulatory developments such as the European Commission’s Clean Industrial Deal and the Affordable Energy Action Plan create favorable conditions for PPA buyers. These initiatives support permitting reforms, flexible consumption mechanisms, and financial hedging instruments.
Political uncertainty, especially in France, with the AREHN program ending and the RE100 requirement changing, has pushed corporate buyers toward fixed-price PPAs. In 2024, France recorded its highest PPA procurement activity to date, and experts anticipate continued growth in 2025 as firms seek to avoid wholesale market exposure.
In Germany, volatility in wholesale prices, three times higher than in 2010, has driven corporates toward PPAs for price certainty, according to Norway-based consultancy Ecohz.
The report emphasizes the importance of acting during this stability window. Mitchell Reay, Principal Analyst, LevelTen Energy, said, “The P25 Continental Index provides a snapshot of the lowest 25% of competitive PPA offers and accurately reflects current market conditions.”
The report noted that the alignment of buyer expectations and stable CapEx is critical to the pricing plateau. Advisors such as South Pole and developers like Avangrid in the U.S. have highlighted the growing interest in hybrid PPAs, although storage integration remains financially complex.
In Europe, Ecohz reports that buyers increasingly seek additionality and long-term stability, driven by rising market volatility and EU decarbonization mandates.
Future of Clean Energy in North America and Europe
In North America, rising demand forecasts, state-level renewable mandates, and corporate environmental, social, and governance goals are expected to drive growth in solar and wind capacity, particularly in ERCOT and MISO.
In Europe, the phasing out of legacy subsidy programs and increasing political and regulatory support are accelerating private sector engagement. Offshore wind, hybrid storage projects, and transmission grid upgrades will play a central role in Europe’s clean energy expansion.
The report said that market participants on both continents are expected to focus more on structured PPAs, long-term hedging, and integration of flexible energy products as the clean energy economy matures.
PPA prices in the U.S. <a href="https://www.mercomindia.com/us-solar-ppa-prices-hold-steady-in-q4-2024-wind-prices-rise-3-3" target="_blank" rel="noopener">rose</a> by a modest 0.3% quarter-over-quarter in the fourth quarter of 2024, according to LevelTen’s Market-Averaged Continental Index.

US and Europe PPA Prices for Solar and Wind Stable in Q1 2025

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/02/amazon_polly_76211.mp3?version=1747226236">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>Solar power purchase agreement (PPA) prices in the U.S. rose by a modest 0.3% quarter-over-quarter in the fourth quarter (Q4) of 2024, according to <a href="https://www.leveltenenergy.com/" target="_blank" rel="noopener">LevelTen</a>’s Market-Averaged Continental Index.
A steep drop in Alberta Electric System Operator (AESO) largely muted the upward price movement. Removing AESO, the rise in solar PPA prices was a more substantial 3.3% quarterly rise across the U.S.
Despite uncertainty in the PPA market, growing energy requirements from data centers continued to fuel clean energy demand in 2024, according to the report.
LevelTen’s P25 Price Index represents the 25th percentile PPA prices.
<a href="https://cms.mercomindia.com/?attachment_id=76212"><img loading="lazy" decoding="async" class="aligncenter wp-image-76212 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-1.png" alt="" width="1066" height="717" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-1.png 1066w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-1-300x202.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-1-768x517.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-1-650x437.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-1-624x420.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-1-600x404.png 600w" sizes="auto, (max-width: 1066px) 100vw, 1066px" /></a>
Source: LevelTen
The LevelTen report said that the increase in solar pricing in the U.S. may be related to uncertainties around tariffs, tax credits, and transmission build-out. However, PPA counterparties are using contractual terms that can account for an array of policy risks that may or may not materialize during 2025 and beyond. 
Wind PPA prices 
The P25 wind prices rose 3.3% QoQ and 13% year-over-year (YoY) in Q4.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-3.png"><img loading="lazy" decoding="async" class="wp-image-76213 size-full aligncenter" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-3.png" alt="" width="1047" height="723" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-3.png 1047w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-3-300x207.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-3-768x530.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-3-650x449.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-3-624x431.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/level10-3-600x414.png 600w" sizes="auto, (max-width: 1047px) 100vw, 1047px" /></a>
Source: LevelTen
The report said that higher interest rates from the U.S. Federal Reserve have posed significant challenges to wind project development over the last few years. This hurdle is in addition to supply chain issues and lingering inflationary difficulties.
It further added that President Donald Trump’s advocacy to end offshore wind development and uncertainty about the future of wind power projects may have contributed to rising wind PPA prices. Analysts are doubtful about the tech space continuing to compete for wind capacity because of the AI sector’s constantly growing energy needs.
Regulatory Uncertainty
While the U.S. election results have raised concerns about tariffs and the future of the Inflation Reduction Act (IRA) tax credits, a complete repeal of the Act is unlikely due to massive investments released into Republican districts. The industry is also optimistic about permitting reforms to hasten project development.
The report said that the PPA market has grown accustomed to accounting for tariffs directly in PPA prices or through tailored contractual terms. Analysts believe that the PPA market can successfully adapt to multiple market conditions.
Renewables Demand Grows
Despite the regulatory uncertainty, the U.S. industry continues to buy clean energy and is likely to continue until a material policy shift occurs. This purchase is driven by continued electrification and growing demand for data center power.
The report said that uncertainty around tariffs and tax credits can be addressed by including contract terms that allow PPA price adjustment or commercial operation date delays based on specific criteria.
Analysts suggest signing PPAs quickly to avoid future complexities, especially for small buyers.
The report stated that due to uncertainties, the market will likely shift further in favor of large, sophisticated buyers who can procure quickly and at scale
Future of Clean Energy
Analysts noted that Trump’s first term witnessed considerable growth in the utility-scale renewable energy space without IRA support.
They also said that some IRA tax credit provisions may be altered in various ways or even removed, even if a complete IRA repeal is unlikely.
Following years of fluctuation in the energy market, PPA prices in North America were <a href="https://mercomindia.com/us-solar-ppa-prices-europe-sees-drop-of-5" target="_blank" rel="noopener">stable</a> during the Q1 of 2024. P25 solar and wind PPA offer prices increased less than 1% during the quarter, according to a recent report from LevelTen Energy.
The national P25 solar PPA prices in the U.S. in Q4 of 2023 <a href="https://mercomindia.com/us-solar-ppa-prices-rates-down-2-in-q4-2023" target="_blank" rel="noopener">rose</a> 3% compared to Q3, while P25 wind prices increased 5%.

US Solar PPA Prices Hold Steady in Q4 2024, Wind Prices Rise 3.3%

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2024/04/amazon_polly_65547.mp3?version=1714020501">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>Following years of fluctuation in the energy market, power purchase agreement (PPA) prices in North America were stable during the first quarter (Q1) of 2024. P25 solar and wind PPA offer prices increased less than 1% during the quarter, according to a recent report from <a href="https://www.leveltenenergy.com/" target="_blank" rel="noopener">LevelTen Energy</a>.
Specifically, P25 solar PPA prices experienced a modest decline of 1.5% over the quarter, while P25 wind prices saw a slight increase of 2.4%.
LevelTen&#8217;s P25 Price Index represents the 25th percentile PPA prices. All PPA price data in LevelTen&#8217;s report are based on the prices developers offer for PPA contracts, not the transacted PPA prices.
Sam Mumford, Analyst, Energy Modeling, LevelTen Energy, said, &#8220;A lower natural gas price from the mild winter and abundant solar panels, combined with hopes of lower interest rates, allowed some developers to offer slightly lower prices this quarter.&#8221;
However, he anticipated that this favorable period would not persist for long. The dynamics are shifting with the rapid growth of artificial intelligence and widespread electrification, coupled with more corporations joining the PPA buyer pool ahead of the 2030 sustainability targets.
Potential trade restrictions loom as the two-year tariff pause on PV components from specific Southeast Asian nations concludes in June, which could swiftly affect pricing. Moreover, increased government scrutiny on the solar supply chain might escalate developer costs, potentially influencing PPA pricing.
<img loading="lazy" decoding="async" class="aligncenter wp-image-65548 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/04/Picture1-6.png" alt="" width="394" height="294" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/04/Picture1-6.png 394w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/04/Picture1-6-300x224.png 300w" sizes="auto, (max-width: 394px) 100vw, 394px" />
Buyers benefit from price drop
In the Electric Reliability Council of Texas (ERCOT), P25 solar prices have declined for the second consecutive quarter, dropping by 1.6%.
Similarly, California Independent System Operator (CAISO) witnessed a noteworthy decrease in P25 solar PPA prices, with a substantial 12.7% reduction this quarter.
&#8220;The decline in CAISO&#8217;s prices can be attributed largely to a surge in competitively priced projects below 50 MW entering the LevelTen Energy Marketplace in Q1,&#8221; explained Mumford.
Conversely, in Alberta Electric System Operator (AESO), there was an uptick in offer liquidity, likely due to the recent removal of the moratorium on renewable energy projects exceeding 1 MW in the province. However, considerable regulatory ambiguity persists, potentially contributing to the 7.2% increase in P25 solar prices.
&#8220;While offer volumes rose in AESO this quarter, they were accompanied by higher prices compared to those in Q4,&#8221; noted Mumford.
Wind prices hit by development costs 
In North America, P25 wind prices increased by 2.4%. Despite benefiting from similar favorable factors as solar prices, developers face challenges concerning turbine availability and pricing.
In Pennsylvania, Jersey, and Maryland Interconnection (PJM), P25 wind prices surged by 17.7%. Mumford attributed this rise to escalating project development costs across various aspects, such as land, interconnection, supply chain, and construction.
Mumford said, &#8220;Numerous projects in PJM notably raised their prices in Q1 compared to the fourth quarter. While interconnection challenges might alleviate over time, it&#8217;s improbable that costs in other areas will decrease.&#8221;
The current period of relative stability in PPA prices during Q1 of 2024 presents a rare opportunity for buyers. Mumford cautioned that this trend is unlikely to persist indefinitely due to increasing demand pushing PPA costs higher.
He said the emerging strategy of bundling PPAs with clean energy tax credits is a financially sustainable procurement alternative for buyers.
Europe 
In the initial quarter of 2024, PPA prices across Europe decreased by 5%. Specifically, solar P25 PPA rates declined by 5.9%, while wind prices dropped by 4.3%.
This downward trend in PPA prices reflects the ongoing impact of subdued wholesale electricity prices across Europe, with factors such as reduced costs in the solar supply chain and a more stable regulatory environment also playing a role.
&nbsp;
<img loading="lazy" decoding="async" class="aligncenter wp-image-65549 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/04/Picture2-2.png" alt="" width="451" height="337" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/04/Picture2-2.png 451w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/04/Picture2-2-300x224.png 300w" sizes="auto, (max-width: 451px) 100vw, 451px" />
&#8220;Europe&#8217;s energy markets seem to finally be reaching a period of relative stability, with even a light downward trend,&#8221; said Plácido Ostos, Director, European Energy Analytics,  LevelTen Energy.
Ostos, however, warns that the trend could reverse. Electricity demand will grow, and certain regulatory uncertainty remains.
For instance, Europe is seeing the potential for increased government oversight on PV component supply. These factors could all impact PPA prices soon. The relative stability of the current moment makes it a suitable time for buyers to go to market.
Pressure on PPA prices 
Lower wholesale electricity prices resulting from Europe&#8217;s mild winter have intensified the pressure for PPA prices to become more competitive.
Several markets witnessed significant price drops during Q1, with Germany and Sweden experiencing robust decreases of 12.7% and 13.2% in their P25 prices, respectively. In Spain, prices declined by 10.5%, partly due to solar price cannibalization.
&#8220;The ongoing decline in solar module prices, driven by an influx of China-based PV components, also played a role,&#8221; Ostos said.
However, concerns within Europe&#8217;s domestic PV manufacturing industry have led to calls for government intervention, which could potentially restrict the supply of inexpensive components and elevate solar PPA prices.
An exception to the general trend was observed in Romania, where P25 solar prices rose by 8.6%. Ostos said, &#8220;Romania&#8217;s price increase in Q1 marks a reversal from the previous quarter&#8217;s trend, which saw an 11% decrease in Q4.
In line with solar trends, European wind PPA prices decreased 4.3% during Q1. This decline was attributed to a significant 8.8% drop in Spain due to limited project liquidity.
Poland debuted on the Wind P25 PPA Price Index in Q1, owing to improved liquidity.
According to a Lawrence Berkely National Laboratory report, the levelized cost of energy for utility-scale solar projects <a href="https://www.mercomindia.com/falling-costs-drove-solar-installations-in-the-us-in-2021" target="_blank" rel="noopener">decreased</a> by about 85% in the U.S. since 2010 to $33/MWh in 2021.

US Solar PPA Prices Decline by 1.5% in Q1 2024, Europe Sees Drop of 5%

From: <a href="https://mercomcapital.com/funding-and-ma-roundup-battery-energy/" target="_blank" rel="noopener">Mercom Capital Group</a>
Form Energy – a startup focusing on making battery systems that can store renewable energy (solar and wind) for longer durations, <a href="https://formenergy.com/form-energy-closes-series-d-to-accelerate-market-entry/" target="_blank" rel="noopener">announced</a> the close of a $240 million Series D financing round led by ArcelorMittal’s XCarb innovation fund. TPG’s global impact investing platform TPG Rise participated in the Series D, investing through TPG Rise Climate. The other investors participating in the round include Perry Creek Capital, along with existing investors NGP Energy Technology Partners III, Coatue, Temasek, Energy Impact Partners (EIP), Breakthrough Energy Ventures (BEV), Prelude Ventures, MIT’s The Engine, Capricorn Investment Group, Eni Next, and Macquarie Capital. This brings Form Energy’s total funds raised to over $360 million.
LevelTen Energy &#8211; a start-up that helps corporations purchase renewable energy &#8211; <a href="https://tinyurl.com/mercomlctn" target="_blank" rel="noopener">raised</a> a $35 million Series C funding round led by NGP ETP, with participation from My Climate Journey (MCJ) Collective, as well as nearly all of LevelTen’s existing investors, including Avista Development, Constellation Technology Ventures, Equinor Ventures, Founders&#8217; Co-op, Prelude Ventures, Techstars, TotalEnergies Ventures, and Wireframe Ventures. LevelTen has now raised $62.3 million in aggregate. This capital infusion will help the company further scale its existing renewable energy transaction platform, which comprises the Energy Marketplace, Asset Marketplace, and Performance Monitoring software. The company will also use proceeds to develop additional software solutions to accelerate the clean energy transition.
Malta, a developer of grid-scale long-duration thermal energy storage solutions, <a href="https://www.businesswire.com/news/home/20210825005523/en/Chevron-Technology-Ventures-and-Piva-Capital-Back-Malta-to-Meet-the-Growing-Demand-for-Long-Duration-Energy-Storage" target="_blank" rel="noopener">announced</a> that Chevron Technology Ventures and Piva Capital had joined Proman, Alfa Laval, Breakthrough Energy Ventures, and Dustin Moskovitz in its oversubscribed Series B financing, increasing the round to over $60 million. The new capital will be used to advance the company’s commercialization strategy.
Solar digital solutions startup Terabase Energy <a href="https://tinyurl.com/mercomfstr" target="_blank" rel="noopener">announced</a> that it had signed a definitive agreement to acquire PlantPredict, a predictive solar energy modeling tool, from First Solar. The terms of the agreement were not disclosed. PlantPredict is a predictive solar energy modeling tool that was developed by First Solar for utility-scale PV applications. The First Solar PlantPredict team will join Terabase following the closing of the transaction, which is expected to take place in October 2021.
Q Cells North America, a manufacturer of PV modules and a provider of complete energy solutions, <a href="https://tinyurl.com/mercomampd" target="_blank" rel="noopener">closed</a> an investment into a portfolio of solar-plus-storage projects developed by Amped Solutions. The investment was made using a new grid equity financing structure, under which Q Cells provided Amped Solutions which capital in exchange for the rights to future grid service revenue expected to be generated by the portfolio of operating systems deployed in California. Amped Solutions will keep ownership of the solar power and energy storage facilities and will continue to receive revenues coming from bill savings, tax benefits, and incentives.
UK power infrastructure investor Gridworks and South African investment firm New GX Capital <a href="https://tinyurl.com/mercomgdwr" target="_blank" rel="noopener">announced</a> that they had injected $40 million into a South Africa-based solar power company operating in the commercial and industrial (C&amp;I) segment to support its expansion across other regions of the African continent. Gridworks invested a total of $31 million in Sustainable Power Solutions Investments (SPS) &#8211; $22 million as part of its co-investment with New GX and an additional $9 million to become a majority shareholder in the C&amp;I business.
A consortium of companies led by China Three Gorges South Asia Investment (CSAIL) has <a href="https://tinyurl.com/mercomchng" target="_blank" rel="noopener">bought</a> Alcazar Energy, a renewable energy project developer that operates across the Middle East and North Africa and is backed by Mubadala Investment Company. The acquisition of Alcazar Energy&#8217;s portfolio of seven wind and solar projects across Jordan and Egypt with a total generation capacity of 411 MW will give CSAIL, and the other Chinese investors access to the Mena region and help expand their presence. The terms of the deal were not disclosed.
Echion Technologies, a developer of next-generation materials for Lithium-Ion batteries, <a href="https://tinyurl.com/mercomecte" target="_blank" rel="noopener">raised</a> £10 million (~$13.7 million) in a Series-A funding round led by CBMM, a supplier of niobium products, and BGF, an investor of equity capital in growth economy companies, with the University of Cambridge, Origin Capital, and other existing shareholders also taking part.
Funds managed by affiliates of Apollo Global Management, together with its consolidated subsidiaries, <a href="https://tinyurl.com/mercomapin" target="_blank" rel="noopener">announced</a> a $150 million equity commitment to FlexGen Power Systems, an integration services and software technology provider for energy storage solutions in the U.S. Apollo&#8217;s investment will be made in partnership with FlexGen&#8217;s existing investors, Altira Group and the founding investment group led by Jerry Miller and Mark Dreyfus. Vinson &amp; Elkins acted as legal counsel to the Apollo Funds. DLA Piper acted as legal counsel, and Citi acted as financial advisor to FlexGen.
For reports and trackers on funding and M&amp;A transactions in solar, energy storage, smart grid, and efficiency sectors, click <a href="https://mercomcapital.com/clean-energy-reports/" target="_blank" rel="noopener">here</a>.
Read last week&#8217;s funding <a href="https://mercomcapital.com/funding-and-ma-roundup-blackrock-invests-solar/" target="_blank" rel="noopener">roundup</a>.

levelten

Get the most relevant India solar and clean energy news.

RECENT POSTS