Prices for solar power purchase agreements (PPAs) continued their push higher to end 2022, a sign that an already tight North American offtake market was still hampered by supply chain constraints and trade disputes.
At the same time, however, wind PPA prices fell in the fourth quarter for the first time in nearly two years, according to a report from LevelTen Energy.
Gia Clark, senior director of developer services at LevelTen, said wind prices appear to be stabilizing in response to the Inflation Reduction Act, which was passed by Congress and signed into law last fall.
But for solar, enforcement of the Uyghur Forced Labor Prevention Act is hanging up gigawatts of module imports over human rights concerns. Moreover, the Commerce Department's preliminary determination that some solar manufacturers in Southeast Asia are circumventing tariffs against China has perpetuated supply-side uncertainty.
In the fourth quarter, North American P25 PPA offer prices rose an average of 2.7% to $47.19 per megawatt hour (MWh) on LevelTen's marketplace. North American P25 solar
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