Survey: Covid-19, PJM MOPR pushing up prices for corporate green energy

Source: By Eric Wolff, Politico • Posted: Sunday, April 26, 2020

Higher equipment costs driven by the coronavirus pandemic and FERC’s decision to create a price floor in PJM Interconnection’s capacity market are making it more expensive for companies seeking to buy solar or wind power for their operations, according to a survey by LevelTen Energy, which runs a marketplace that connects renewable developers with corporations looking to go green.

Nearly half of respondents said PPA prices have already been affected by FERC’s decision to impose a price floor, called the Minimum Offer Price Rule, in PJM that will block state mandated wind and solar from long-term capacity auctions. FERC finalized the ruling last week (after the survey was conducted) and exempted voluntary corporate renewable energy purchases from the price floor. That could soften the MOPR’s blow for some projects.