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Edison Energy’s Q3 Report: Price hikes continue for U.S. renewables as skyrocketing demand hits supply chain constraints

Costs impacted by commodity prices, tariffs, and human rights issue

The North American and European PPA markets continue to build momentum as more global and regional companies seek projects to meet their long-term renewable energy goals.”
— Edison Energy’s Q3 Renewables Market Report

WASHINGTON, DC, UNITED STATES, October 22, 2021 / -- The third quarter saw continued volatility in the markets for Renewable Energy Credits (RECs) and Power Purchase Agreements (PPAs), reflecting soaring demand amid rising costs for commodities and more trade-related constraints, according to Edison Energy’s Q3 Renewables Market Report.

“The North American and European PPA markets continue to build momentum as more global and regional companies set aggressive renewable energy targets and seek projects to meet their long-term renewable energy goals,” the report describes. Some markets abroad that were previously less active are starting to heat up as well. The global voluntary carbon credit market has also seen record demand.

Challenges continue, however. “Steel has seen the most dramatic price surge, up 210% in the past calendar year, while aluminum is up 67% and copper is up 43%,” the report notes. The 2018 tariffs on solar panels imported from China, due to expire in early 2022, could be extended or even expanded to other countries. And, “a forced labor-related import ban on solar modules has placed increased pressure on buyers and developers.”

Europe, too, looks like a seller’s market for environmental commodities. Meanwhile, its offshore wind industry has spread from its origins in the North Sea to Italy and France, with new offshore strategies, auctions, and contracts in Spain, Greece, and Poland, among other nations around the Mediterranean and the Black Sea.

Among the report’s findings:
- Buyers with near-term renewable energy goals are feeling the pressure to contract quickly, and some are seeking contract protections against uncertainties.
- Construction costs, regulations, and the step-down in federal tax credits are further elevating PPA prices.
- The most popular markets, ERCOT and PJM, saw price increases of around $2-3/MWh. The most significant increases were seen in MISO wind, where prices were nearly $10/MWh higher than in Q2, a 38% increase.
- The European Guarantee of Origin (GO) market is experiencing some leading indicators of a seller’s market, mirroring recent trends in the U.S.

Follow the link to read Edison Energy’s full Q3 Renewables Market Report. For more information, contact Hannah Badrei, Vice President, Energy Supply Advisory, at

For more information about the Edison Energy Insights Platform, visit our website or contact Mary Kate Francis, Senior Director, Renewables Supply, at

Peter Kelley
RenewComm LLC
+1 202-270-8831
email us here

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