Renewables-linked PPA prices have shot up nearly 30% in a year, especially due to the war in Ukraine, according to the latest Levelten Energy report.

European PPA prices for solar and wind power have risen 27.5% year over year, according to the first-quarter PPA Price Index from US renewables marketplace and procurement platform LevelTen Energy.

In its previous report, published in October, LevelTen Energy stated that the market was cooling down. The war in Ukraine, however, has dramatically changed the scenario. The conflict is the latest crisis to affect Europe's renewable energy markets, sending wind and solar power purchase agreement prices up 8.6% to an average price of €0.057/Wh. For solar, they range between €0.038/kWh in Spain and €0.074/kWh in Lithuania.

Despite this favorable scenario, interconnection and regulatory challenges are significant in multiple European markets, especially those related to permits, and further price increases are expected.