Wind and solar PPA quarterly prices in North America 2023-2024
In the first quarter of 2024, solar PPA prices in North America declined in comparison to the previous quarter, reaching some 51.52 U.S. dollars per megawatt hour. However, North American wind PPA prices increased in comparison with the last quarter of 2023, surpassing 61.5 U.S. dollars per megawatt hour. Generally, the price of power purchase agreements in North America has presented an increasing trend over the last year. The rise of inflation, as well as interconnection queues in the country have contributed to the recent increase in PPA prices.
U.S. regional PPA pricing
Regionally, wind PPA prices were the lowest in the Southwest Power Pool (SPP) and the Electric Reliability Council of Texas (ERCOT), reaching 40 and 42 U.S. dollar per megawatt hours in the last quarter of 2023, respectively. By comparison, wind PPA prices in the California Independent System Operator (CAISO) stood at 75 U.S. dollars per megawatt hour. Regarding solar, the Southwest Power Pool and the California Independent System Operator registered the lowest PPA prices among U.S. electricity system operators.
Corporate PPA landscape in the U.S.
In total, more than 17 gigawatts of wind and solar capacity was contracted in the United States through corporate purchase agreements in 2023. Solar energy dominated the market during the last four years, accounting for roughly 80 percent of the contracted capacity annually. Technology companies were the largest buyers of renewable energy through PPAs that year in the U.S., with Amazon and Meta ranking first and second, respectively.
