The volatile energy market seems to put more pressure on power purchase agreement (PPA) prices that continue to soar in recent months.
A new report by the provider of renewable transaction infrastructure LevelTen Energy suggests PPA prices are now 47% higher compared to last year.
Analysts estimate that in the second quarter, European renewable energy buyers saw PPA prices soar 16% to 66,07€ (£55.8) per MWh.
The authors of the report note that year-over-year, European P25 solar and wind prices have increased as a result of soaring wholesale prices, regulatory challenges and supply chain constraints.
They also urge governments to take further action to ease administrative obstacles and control rising prices.
Flemming Sørensen, Vice President of Europe at LevelTen Energy, said: “In the simplest terms, PPA prices have been rising for one year because supply cannot keep up with demand.
“There isn’t a clear end in sight to this supply and demand imbalance because its underlying causes will take months or years to resolve.
“Developers continue to struggle to build new solar and wind projects, which are sorely needed, due to tough permitting and interconnection challenges and the rising cost of inputs and labour.”