- June’s lower-than-expected ERCOT electricity prices likely influenced offtakers' perspectives long-term offtake agreements.

On our renewables webinar last week, we highlighted mild June pricing in ERCOT and how that may be impacting offtakers' views on solar and wind PPA pricing.

Comparing average real-time prices from June 2024 to the same month last year, we uncovered significant disparities at North hub, with prices notably lower this year.

These findings may be reshaping the market's outlook on future electricity prices and potentially offsetting the heightened demand expectations that were baked into future pricing back in April and May of this year.

This is especially important for solar PPAs because most of the value from these contracts comes from only a few days (or even hours) of strong pricing during the summer months.

These surprisingly low pricing levels from June 2024 may therefore be taming the market's view of future electricity pricing and, in turn, the value of solar PPAs overall.

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