RenewaFi Report Shows Average ERCOT PPA Value Increased 20% in First Half of 2024
- Bid prices from offtakers increased 16% for wind and 15% for solar, on average.
- Offer prices from sellers declined by 5% for both wind and solar, on average.
RenewaFi, the platform to price and source offtake, today announced the publication of its latest ERCOT PPA Market report. Covering the first half of 2024, the report shows a surge in value for both wind and solar PPAs that created a window of opportunity for offtake transactions.
Consistent with the increase in value, bid prices from buyers on the RenewaFi Marketplace increased 16% for wind and 15% for solar, on average. Offer prices from sellers, meanwhile, declined by 5% for both wind and solar, on average. The result was a convergence between bids and offers, culminating in six PPA matches on the RenewaFi Marketplace in 1H2024.
Noam Yaffe, Founder & CEO, said: “The market’s initial reaction to ERCOT’s higher load projections meant that, in many cases, otherwise unattractive offers suddenly became viable offtake opportunities. The fact that this window of opportunity started to close by the end of Q2 underlines how important it is for originators to track market dynamics and be able to execute quickly.”
The report contains nearly 40 slides of data visualizations and explanations. In addition to pricing trends, it also breaks down key PPA value drivers like shape risk and economic curtailment risk.
The report is based on RenewaFi’s Price Tracker, an analytics dashboard providing pricing data for more than 850 ERCOT PPAs. The Price Tracker, in turn, is powered by a neutral valuation model that is calibrated with more than 1,300 prices from the RenewaFi Marketplace.
The report is available only to RenewaFi members, who can access it by logging in to their accounts.
To learn more about RenewaFi membership, request a free trial at https://www.renewafi.com/trial.
About RenewaFi
RenewaFi is a renewable energy platform that helps originators price and source offtake agreements. The company does this by combining a neutral price tracker with an anonymous marketplace. More than 400 originators turn to RenewaFi to discover prices and find their next counterparty. Learn more at RenewaFi.com.
