Yes, it is comparatively much more valuable today than even 5 years ago. Meanwhile renewables have become much more expensive and market constructs have evolved to better assure reliability, which also dilutes the value of renewables, broadly speaking. - ThreadSky

edmondmichelet.bsky.social • 14 days ago

Yes, it is comparatively much more valuable today than even 5 years ago. Meanwhile renewables have become much more expensive and market constructs have evolved to better assure reliability, which also dilutes the value of renewables, broadly speaking.

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demonhelp.bsky.social•14 days ago

agree on capacity value. But renewables haven’t become expensive, corporate PPAs are expensive because of high demand and limited supply. The cost to build solar, wind and batteries has been deflationary even compared to pre COVID levels

edmondmichelet.bsky.social•14 days ago

I’m sorry but that’s empirically false. The cost to utilities on average for wind in the upper Midwest was in the $20-30/MWh pre 2021. Since then, the average cost is over $50/MWh driven by supply chain shortages, general inflation, as well as labor costs. It’s a totally different market today.

demonhelp.bsky.social•13 days ago

No. New contracts are back to 30-40 range, maybe slightly up due to interest rates

edmondmichelet.bsky.social•13 days ago

https://www.utilitydive.com/news/ppa-power-purchase-prices-wind-solar-levelten-ascend-analytics/730245/#:~:text=North%20America%20hasn't%20seen,the%20third%20quarter%20of%202024.

“North America hasn’t seen those kinds of PPA prices since early 2020, according to data from LevelTen Energy, which puts the typical solar PPA at $56.58/MWh, and wind at $65.63/MWh as of the third quarter of 2024.”

demonhelp.bsky.social•13 days ago

This is levelten data for corp PPA, which as I said earlier is inflated due to demand outstripping supply. Also corps going on levelten platform don’t have the negotiating power. Utility RFPs yield a much lower price

edmondmichelet.bsky.social•13 days ago

It is not. You’re talking to someone who sees these contract costs to utilities on a weekly basis. I can tell you that $50-65 wind PPAs is the norm. LevelTen is not just corporate PPA, it’s solicited information from developers:

edmondmichelet.bsky.social•13 days ago

Your information is wrong. We see developer offers on a weekly basis. Where are you getting your data.

demonhelp.bsky.social•13 days ago

From utilities

edmondmichelet.bsky.social•13 days ago

See my reply with reference. Your information is demonstrably false.

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