Industry Analysis
Nov 30, 2023
The Story of a South Hub Solar Match
When offtakers post a competitive bid on RenewaFi, it can lead to a spike in competitive counters from sellers.
That’s what happened for South Hub solar offers in Q2 and Q3.
In late May, a quality offtaker posted a bid at $40, which incentivized sellers to get aggressive with their offer prices.
As a result, the median offer price, which had been at $50 in April, decreased by about $5 by June, as sellers jockeyed to attract the offtaker.
This meant the most aggressive offers were below market value.
In other words, these offers were in the money to the offtaker.
The result was a match at $39.75 for a 10-year, unit contingent, 50 MW PPA (chart 4).
Good things happen when market participants get aggressive!
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