LevelTen Platform Supplies Current PPA Market Information

Power Purchase Agreement

(Credit: Pixabay)

by | Aug 16, 2022

Power Purchase Agreement

(Credit: Pixabay)

A cloud-based software system that produces power purchase agreement information to help energy developers, buyers, and investors analyze prices and the overall market is being offered by LevelTen Energy.

The software, called LevelTen MarketPulse, is designed to provide up-to-date power purchase agreement (PPA) data and analytics to help businesses make better-informed market decisions in North America and Europe. LevelTen says the platform provides transparency into the PPA market.

The company says traditionally acquiring PPA price data has been challenging because offers are usually only shared between buyers and sellers. At times that could be a weeks-long process, resulting in outdated prices by the time deals are completed.

The LevelTen system will help businesses with PPA opportunities by using anonymized data from the company’s online PPA marketplace that connects buyers and sellers. LevelTen says the marketplace platform has participation from more than 90% of renewable energy developers in North America and 60% of developers in Europe.

The company says current information is especially important at the moment with PPA prices rising over the past year. The cost of PPAs is up around 30% in North America and 47% in Europe over the past year, according to LevelTen data.

Those prices have continued to rise through the first half of 2022, with solar up 8% in the second quarter and wind up 2.5%. PPA prices overall reached nearly $42 per megawatt hour in the second quarter, according to LevelTen.

Despite the PPA price increases, renewable energy is a primary focus of energy transitions in the United States. The Department of Energy says renewable energy generates about 20% of electricity in the country, and the Energy Information Administration estimates solar and wind projects will account for more than 60% of new power generation in 2022. New energy policies like the just-passed Inflation Reduction Act, likely will enhance that growth.

Facebook parent Meta is an example of a significant recent PPA agreement. The company executed a deal with Great Pathfinder Wind, a 225-megawatt project located in Iowa.

The MarketPulse platform can show PPA prices based on geography and project development maturity. It also shows historical prices and projected settlement values.

Additionally, the software can charts a project’s energy production, contract terms, and where demand is at its highest. LevelTen says users can download data and use it directly with their financial models.

“We believe we’ve created one of the most advanced PPA data tools on the market, and we are excited to continue expanding its features in the months to come,” says Prasun Chaudhury, LevelTen’s director of data solutions.

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