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					</table>Following years of fluctuation in the energy market, power purchase agreement (PPA) prices in North America were stable during the first quarter (Q1) of 2024. P25 solar and wind PPA offer prices increased less than 1% during the quarter, according to a recent report from <a href="https://www.leveltenenergy.com/" target="_blank" rel="noopener">LevelTen Energy</a>.
Specifically, P25 solar PPA prices experienced a modest decline of 1.5% over the quarter, while P25 wind prices saw a slight increase of 2.4%.
LevelTen&#8217;s P25 Price Index represents the 25th percentile PPA prices. All PPA price data in LevelTen&#8217;s report are based on the prices developers offer for PPA contracts, not the transacted PPA prices.
Sam Mumford, Analyst, Energy Modeling, LevelTen Energy, said, &#8220;A lower natural gas price from the mild winter and abundant solar panels, combined with hopes of lower interest rates, allowed some developers to offer slightly lower prices this quarter.&#8221;
However, he anticipated that this favorable period would not persist for long. The dynamics are shifting with the rapid growth of artificial intelligence and widespread electrification, coupled with more corporations joining the PPA buyer pool ahead of the 2030 sustainability targets.
Potential trade restrictions loom as the two-year tariff pause on PV components from specific Southeast Asian nations concludes in June, which could swiftly affect pricing. Moreover, increased government scrutiny on the solar supply chain might escalate developer costs, potentially influencing PPA pricing.
<img loading="lazy" decoding="async" class="aligncenter wp-image-65548 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/04/Picture1-6.png" alt="" width="394" height="294" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/04/Picture1-6.png 394w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/04/Picture1-6-300x224.png 300w" sizes="(max-width: 394px) 100vw, 394px" />
Buyers benefit from price drop
In the Electric Reliability Council of Texas (ERCOT), P25 solar prices have declined for the second consecutive quarter, dropping by 1.6%.
Similarly, California Independent System Operator (CAISO) witnessed a noteworthy decrease in P25 solar PPA prices, with a substantial 12.7% reduction this quarter.
&#8220;The decline in CAISO&#8217;s prices can be attributed largely to a surge in competitively priced projects below 50 MW entering the LevelTen Energy Marketplace in Q1,&#8221; explained Mumford.
Conversely, in Alberta Electric System Operator (AESO), there was an uptick in offer liquidity, likely due to the recent removal of the moratorium on renewable energy projects exceeding 1 MW in the province. However, considerable regulatory ambiguity persists, potentially contributing to the 7.2% increase in P25 solar prices.
&#8220;While offer volumes rose in AESO this quarter, they were accompanied by higher prices compared to those in Q4,&#8221; noted Mumford.
Wind prices hit by development costs 
In North America, P25 wind prices increased by 2.4%. Despite benefiting from similar favorable factors as solar prices, developers face challenges concerning turbine availability and pricing.
In Pennsylvania, Jersey, and Maryland Interconnection (PJM), P25 wind prices surged by 17.7%. Mumford attributed this rise to escalating project development costs across various aspects, such as land, interconnection, supply chain, and construction.
Mumford said, &#8220;Numerous projects in PJM notably raised their prices in Q1 compared to the fourth quarter. While interconnection challenges might alleviate over time, it&#8217;s improbable that costs in other areas will decrease.&#8221;
The current period of relative stability in PPA prices during Q1 of 2024 presents a rare opportunity for buyers. Mumford cautioned that this trend is unlikely to persist indefinitely due to increasing demand pushing PPA costs higher.
He said the emerging strategy of bundling PPAs with clean energy tax credits is a financially sustainable procurement alternative for buyers.
Europe 
In the initial quarter of 2024, PPA prices across Europe decreased by 5%. Specifically, solar P25 PPA rates declined by 5.9%, while wind prices dropped by 4.3%.
This downward trend in PPA prices reflects the ongoing impact of subdued wholesale electricity prices across Europe, with factors such as reduced costs in the solar supply chain and a more stable regulatory environment also playing a role.
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<img loading="lazy" decoding="async" class="aligncenter wp-image-65549 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/04/Picture2-2.png" alt="" width="451" height="337" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/04/Picture2-2.png 451w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/04/Picture2-2-300x224.png 300w" sizes="(max-width: 451px) 100vw, 451px" />
&#8220;Europe&#8217;s energy markets seem to finally be reaching a period of relative stability, with even a light downward trend,&#8221; said Plácido Ostos, Director, European Energy Analytics,  LevelTen Energy.
Ostos, however, warns that the trend could reverse. Electricity demand will grow, and certain regulatory uncertainty remains.
For instance, Europe is seeing the potential for increased government oversight on PV component supply. These factors could all impact PPA prices soon. The relative stability of the current moment makes it a suitable time for buyers to go to market.
Pressure on PPA prices 
Lower wholesale electricity prices resulting from Europe&#8217;s mild winter have intensified the pressure for PPA prices to become more competitive.
Several markets witnessed significant price drops during Q1, with Germany and Sweden experiencing robust decreases of 12.7% and 13.2% in their P25 prices, respectively. In Spain, prices declined by 10.5%, partly due to solar price cannibalization.
&#8220;The ongoing decline in solar module prices, driven by an influx of China-based PV components, also played a role,&#8221; Ostos said.
However, concerns within Europe&#8217;s domestic PV manufacturing industry have led to calls for government intervention, which could potentially restrict the supply of inexpensive components and elevate solar PPA prices.
An exception to the general trend was observed in Romania, where P25 solar prices rose by 8.6%. Ostos said, &#8220;Romania&#8217;s price increase in Q1 marks a reversal from the previous quarter&#8217;s trend, which saw an 11% decrease in Q4.
In line with solar trends, European wind PPA prices decreased 4.3% during Q1. This decline was attributed to a significant 8.8% drop in Spain due to limited project liquidity.
Poland debuted on the Wind P25 PPA Price Index in Q1, owing to improved liquidity.
According to a Lawrence Berkely National Laboratory report, the levelized cost of energy for utility-scale solar projects <a href="https://www.mercomindia.com/falling-costs-drove-solar-installations-in-the-us-in-2021" target="_blank" rel="noopener">decreased</a> by about 85% in the U.S. since 2010 to $33/MWh in 2021.

US Solar PPA Prices Decline by 1.5% in Q1 2024, Europe Sees Drop of 5%

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					</table>The national P25 solar power purchase agreement (PPA) prices in the U.S. in the fourth quarter (Q4) of 2023 rose 3% compared to Q3, while P25 wind prices increased 5%.
LevelTen’s P25 Price Index represents the 25th percentile PPA prices. All PPA price data in LevelTen’s report are based on the prices developers offer for PPA contracts and not the transacted PPA prices.
The reported market-averaged blended index of wind and solar in North America P25 PPA prices were up 4% in Q4 of as compared to Q3, according to a recent report from <a href="https://www.leveltenenergy.com/" target="_blank" rel="noopener">LevelTen Energy</a>.
The report analyzes the North American and European markets, revealing dynamic pricing shifts and sheds light on the challenges buyers and developers face.
During the quarter, the market-averaged blended index of wind and solar P25 PPA prices decreased by 2% across Europe. P25 solar prices declined by 3%, and P25 wind prices saw a 1% decrease.
North America
The fluctuations in both solar and wind prices were notable across various Independent System Operators (ISOs). Solar P25 prices decreased by 3% in the Electric Reliability Council of Texas (ERCOT) but surged by 15% in California Independent System Operator (CAISO).
Wind prices varied widely, with a 6% decrease in CAISO and an 18% increase in Southwest Power Pool (SPP).
Regional factors, such as interconnection challenges and queue backlogs, played a crucial role in this diverse pricing landscape. Developers, facing sustained demand for renewable energy, grappled with economic uncertainty, incorporating associated risks into their pricing strategies.
The solar market presented a mixed scenario, with a 15% increase in P25 prices in CAISO but decreases in other regions, including a 3% drop in ERCOT and a 2% decrease in SPP.
Sam Mumford, an analyst at LevelTen Energy, attributed the downward pressure on solar PPA prices to factors like panel price moderation, improved supply chain conditions, and expectations of future interest rate changes.
Conversely, increases were likely influenced by regulatory adjustments, market conditions, and heightened buyer demand, particularly in CAISO.
Solar PPA prices in North America had <a href="https://www.mercomindia.com/solar-wind-ppa-prices-europe-north-america-q3" target="_blank" rel="noopener">increased</a> by 4% in the third quarter, rebounding from a slight dip from the previous quarter.
<img loading="lazy" decoding="async" class="aligncenter wp-image-62987 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/North-America.png" alt="" width="840" height="627" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/North-America.png 840w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/North-America-300x224.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/North-America-768x573.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/North-America-650x485.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/North-America-624x466.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/North-America-600x448.png 600w" sizes="(max-width: 840px) 100vw, 840px" />
Mumford noted the persistent push-pull dynamics in solar PPA prices, with challenges evolving from supply chain issues to the impact of high-interest rates on project returns.
Wind prices also exhibited variability by ISO, with SPP experiencing an 18% increase and ERCOT seeing an 8% rise. CAISO, on the other hand, observed a 6% decrease, while Midcontinent Independent System Operator (MISO) recorded a 1% drop.
Developers continued to incorporate macro-level uncertainties into pricing, reflecting the influence of factors like the higher cost of capital.
Despite these fluctuations, Mumford emphasized that corporate demand for PPAs remained robust, driven by the electrification of transportation, increasing power needs from data centers, and growing demand for renewable energy.
He highlighted the need for PPA buyers and sellers to maintain a flexible partnership approach amid evolving market conditions and stricter financing requirements from banks.
Europe 
Plácido Ostos, Director of European Energy Analytics at LevelTen Energy, expressed optimism at the slight easing of upward price pressure after a period of rising PPA prices.
European solar PPA prices witnessed a 3% decrease during Q4 2023, attributed to improving supply chain conditions and a global oversupply of solar panels.
The decline was notable in Spain, Portugal, and Germany, while Italy and the United Kingdom experienced increases of 6% and 1%, respectively. Ostos highlighted the impact of local competition, government policy changes, and the financial effects of high interest rates on these variations.
Wind PPA prices in Europe decreased by 1%, influenced by the loss of higher-priced markets like France and the U.K. Wind development faced challenges in Europe, including high component prices, inflation impacts, high interest rates, and limited site availability.
Ostos said relief in the form of the European Wind Power Package and support schemes from the European Investment Bank aimed at facilitating a robust financing environment for European wind projects helped wind PPA prices go southward.
<img loading="lazy" decoding="async" class="aligncenter wp-image-62986 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Europe.png" alt="" width="840" height="627" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Europe.png 840w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Europe-300x224.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Europe-768x573.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Europe-650x485.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Europe-624x466.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Europe-600x448.png 600w" sizes="(max-width: 840px) 100vw, 840px" />
Noteworthy trends included a 5% decrease in Finnish wind prices, a 1% increase in Spain, and a 2% increase in Romania. However, challenges such as offering liquidity and the absence of traditionally active markets in the UK contributed to varied pricing across the continent.
Ostos stressed the complexity of identifying a single trend in the European wind market due to multiple influencing factors.
Despite the challenges, Ostos noted that the slight decrease in PPA prices in Q4, coupled with improving supply chain conditions and potential reductions in interest rates, was encouraging.
The demand for PPAs and renewable energy in Europe was expected to remain high due to electrification efforts and the expansion of the green hydrogen sector. Ostos advised PPA buyers to prioritize preparation and transactional efficiency to secure favorable deals amid evolving market conditions.
According to a Lawrence Berkely National Laboratory report, the levelized cost of energy for utility-scale solar projects <a href="https://www.mercomindia.com/falling-costs-drove-solar-installations-in-the-us-in-2021" target="_blank" rel="noopener">decreased</a> by about 85% in the U.S. since 2010 to $33/MWh in 2021.

US Solar PPA Prices Up 3%; Europe’s Wind-Solar Rates Down 2% in Q4 2023

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					</table>Solar power purchase agreement (PPA) prices in North America increased by 4% during the third quarter (Q3) of 2023, rebounding from a slight dip in Q2. The uptick was driven by price rises within specific Independent System Operators (ISOs).
Across the Atlantic, Europe&#8217;s solar and wind energy sectors also displayed upward pricing trends during Q3. This shift comes after a period of relative pricing relief in Q1 and Q2.
European solar PPA prices in Q3 rose by 2%, indicating that the market may be reaching a new pricing equilibrium.
The findings were unveiled in the <a href="https://www.leveltenenergy.com/" target="_blank" rel="noopener">LevelTen Energy</a> study, which analyzes the North American and European markets, revealing dynamic pricing shifts and shedding light on the challenges buyers and developers face.
LevelTen&#8217;s P25 Price Index represents 25th percentile PPA prices. All PPA price data in LevelTen&#8217;s report are based on the prices developers offer for PPA contracts, not the transacted PPA prices.
North America 
The solar and wind energy sectors in North America showcased distinct patterns, highlighting the industry&#8217;s resilience.
In the Pennsylvania-New Jersey-Maryland Interconnection (PJM region), solar P25 prices surged by 12% during Q3, reflecting a substantial 31% year-over-year (YoY) increase.
Several factors contributed to this surge, including permitting challenges in Virginia, a shortage of construction companies in the area resulting in higher construction costs, projected increases in future electricity prices in PJM over the next decade, and insufficient transmission infrastructure to meet the demand for clean energy.
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-59723" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/LevelTen-Solar-Wind-PPA.png" alt="LevelTen Solar &amp; Wind PPA" width="736" height="434" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/LevelTen-Solar-Wind-PPA.png 736w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/LevelTen-Solar-Wind-PPA-300x177.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/LevelTen-Solar-Wind-PPA-650x383.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/LevelTen-Solar-Wind-PPA-624x368.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/LevelTen-Solar-Wind-PPA-600x354.png 600w" sizes="(max-width: 736px) 100vw, 736px" />
Wind Energy Market
On the other hand, the North American P25 wind PPA prices remained relatively stable, with a marginal 1% decrease in Q3. The decline can be attributed to decreased Southwest Power Pool (SPP) prices. This quarter&#8217;s decrease contrasts with Q2, where prices saw a significant 13% rise due to low supply across ISOs.
The substantial increase in wind development in the SPP region, which outpaced projected energy demand, intensified competition and consequently led to lower prices.
The blended P25 prices, representing a mix of solar and wind PPAs, showed a 2% rise in Q3, resulting in an 18% increase YoY.
Challenges for Buyers and Developers
The report said that while Q3 price increases averaged lower than some previous quarters, the cumulative effect of years of rising prices has created challenges for both corporate buyers and developers.
Buyers are increasingly being asked to assume more commercial and financial risk, making it difficult to secure approval from their CFOs. Developers are also grappling with providing pricing relief in the face of various development and financing challenges. The expectation of a prolonged high-interest rate environment is pushing up costs for developers, affecting energy players of all sizes.
Pricing trends vary by ISO and are heavily influenced by regional considerations. The report covers seven North American Independent System Operator (ISO) markets, including AESO (Alberta Electric System Operator), California Independent System Operator (CAISO), Electric Reliability Council of Texas (ERCOT), ISO New England (ISO-NE), Midcontinent Independent System Operator (MISO), PJM, and SPP.
For instance, solar prices in ERCOT decreased by 4% in Q3 due to a decrease in regulatory threats and risk premiums. Meanwhile, SPP saw a significant 13% decrease in P25 wind PPA prices, possibly due to a surge in lower-priced wind offers entering the market.
Europe 
LevelTen Energy&#8217;s report sheds light on the evolving European P25 PPA market, marking a possible shift towards a &#8220;new normal&#8221; for pricing following earlier surges triggered by the pandemic and geopolitical events.
Previously, steep price increases were driven by the pandemic and geopolitical factors such as the war in Ukraine.
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-59724" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/LevelTen-Solar-Wind-PPA-Q3.png" alt="LevelTen Solar &amp; Wind PPA Q3" width="752" height="431" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/LevelTen-Solar-Wind-PPA-Q3.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/LevelTen-Solar-Wind-PPA-Q3-300x172.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/LevelTen-Solar-Wind-PPA-Q3-650x373.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/LevelTen-Solar-Wind-PPA-Q3-624x358.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/LevelTen-Solar-Wind-PPA-Q3-600x344.png 600w" sizes="(max-width: 752px) 100vw, 752px" />
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The stabilization of the supply chain eased the upward price pressure witnessed in the first half of 2023.
However, a significant drop in French nuclear generation in recent months led to increased electricity prices across Central Europe, particularly affecting solar PPA prices in markets like France, Germany, and Poland.
Moreover, a looming labor shortage stresses project finance models, which, in turn, adds a premium to Engineering, Procurement, and Construction (EPC) costs for solar developers. Ongoing interest rate hikes also create substantial cost pressures in the European market.
European Wind Energy Market
In Q3, European wind PPA prices experienced a 2% increase in the Market-Averaged P25 prices. This upward trend can be partly attributed to price increases in Spain, where demand for wind PPAs is rising, mainly due to concerns about price cannibalization and solar project curtailment.
However, European wind developers continue to face several challenges that may prevent wind PPA prices from decreasing significantly. Permitting difficulties and community opposition in many markets are increasing costs and extending development timelines.
Additionally, the economics of wind development are influenced by stubborn inflation across project inputs and rising financing costs due to ongoing interest rate hikes.
Country-Level Ambitions and Legislation
European countries are diverging in their commitments to tackling the climate crisis. While the European Parliament recently approved legally binding targets to increase renewable energy buildout, some countries have varying levels of ambition.
For example, France introduced a plan to curb greenhouse gas emissions and support offshore wind, while the UK softened its net-zero plans and expanded oil drilling in the North Sea. European policymakers face the challenge of aligning on a bold path to decarbonization, especially in the wake of record-breaking temperatures.
The report noted that with rising corporate demand for European PPAs, and PPA prices are unlikely to experience substantial decreases soon, and buyers are encouraged to collaborate with advisors and identify projects that align with their sustainability goals.
Europe&#8217;s wholesale electricity markets are also witnessing a heightened occurrence of negative grid prices, a trend that is anticipated to become more frequent in the years ahead. These negative prices represent genuine hazards to PPA purchasers, whose contractual settlements are linked to the pricing dynamics of wholesale markets.
This surge in price volatility can be attributed to various factors, encompassing the increased prevalence of price cannibalization, the proliferation of distributed energy generation, the persistence of legacy subsidy schemes, and the inadequacies of grid infrastructure to accommodate renewable energy sources effectively.
According to a Lawrence Berkely National Laboratory report, LCOE for utility-scale solar projects <a href="https://www.mercomindia.com/falling-costs-drove-solar-installations-in-the-us-in-2021" target="_blank" rel="noopener">decreased</a> by about 85% in the U.S. since 2010 to $33/MWh in 2021.
A recent Legal and General Investment Management <a href="https://www.mercomindia.com/global-additional-investment-every-year" target="_blank" rel="noopener">report</a> said that Europe would experience high energy prices in the coming years if sufficient decarbonization funding is delayed by another decade.

Solar and Wind PPA Prices Across Europe and North America Inched Up in Q3

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					</table>In a recent interaction with regulatory bodies from across the country, Union Minister for <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Power</a> and <a href="https://mnre.gov.in/" target="_blank" rel="noopener">New &amp; Renewable Energy</a> R.K. Singh emphasized the need for cost-reflective tariffs and compliance with the Electricity (Rights of Consumers) Rules.
The meeting discussed crucial aspects of India&#8217;s power sector and the role of regulatory commissions.
One of the central points raised by the Minister was the necessity for regulators to ensure that tariffs cover the entire cost of services provided by distribution companies (DISCOMs).
He recalled the government&#8217;s decision to make energy audits mandatory, a move designed to identify areas of power leakage and theft, ultimately reducing Aggregate Technical and Commercial (AT&amp;C) losses.
He also stressed that the trajectories set for AT&amp;C loss reduction should be realistic to ensure attainable goals.
Singh also highlighted the importance of implementing pre-paid meters nationwide. This initiative is expected to enhance billing and collection efficiency for DISCOMs, ultimately contributing to their financial well-being and reducing their working capital requirements due to upfront payments by consumers.
Regarding subsidies, the Minister pointed out that while it is the prerogative of state governments to decide on subsidies for specific consumer categories, it is the responsibility of state commissions to ensure that DISCOMs receive the subsidies allocated by the state government. He reiterated that electricity is not free and must be paid for.
The Minister observed that since the previous meeting in October 2022, significant progress has been made in various areas, including the timely issuance of tariff and true-up orders for distribution companies, transmission licensees, and generating utilities.
Singh highlighted the importance of these developments in achieving cost-reflective tariffs, which are essential for the financial sustainability of the power sector.
While commending the regulators for their efforts to improve the functioning of the power system, the Minister expressed concern about the growing backlog of cases in some commissions and urged them to prioritize the resolution of long-pending cases.
Singh emphasized that the country&#8217;s development is contingent on a consistent and uninterrupted power supply, 24&#215;7. He highlighted that one of the key differentiators between developed and developing/under-developed countries is the presence of load shedding and blackouts in the latter category.
To address this issue, he drew attention to the Electricity (Rights of Consumers) Rules, which provide for penalties for gratuitous load shedding, and urged their strict implementation.
In August 2023, the Ministry of Power <a href="https://www.mercomindia.com/ministry-strict-measures-subsidy-accounting-billing-discoms" target="_blank" rel="noopener">amended</a> the Electricity Rules 2005, introducing measures to streamline states&#8217; accounting, reporting, billing, and subsidy payments to the DISCOMs.
In January this year, Singh <a href="https://www.mercomindia.com/consumers-smart-meters-billed-on-actual-load-minister" target="_blank" rel="noopener">advised</a> states to ensure that no penalty is levied on any consumer for higher load discovered after the installation of prepaid smart meters. He asserted that the billing for consumers who have installed prepaid smart meters be done on an actual load basis.

Union Power Minister Calls on Regulators to Ensure Cost-Reflective Tariffs

Here are some noteworthy cleantech announcements of the day from around the world:
Sungrow, a global inverter solution supplier for renewables, <a href="https://www.prnewswire.co.uk/news-releases/sungrow-joins-hands-with-jcm-power-and-infraco-to-construct-malawi-s-first-solar-plus-storage-project-843477098.html" target="_blank" rel="noopener">partnered</a> with JCM Power, InfraCo Africa, RINA, and Innovate UK to construct the Republic of Malawi&#8217;s first utility-scale solar-plus-storage project. The 20 MW solar PV and 5 MW/10 MWh storage project will be located in the Dedza district of Malawi.
Polysilicon maker Daqo New Energy&#8217;s subsidiary has <a href="https://www.prnewswire.com/news-releases/daqo-new-energy-announces-long-term-high-purity-polysilicon-supply-agreements-with-ja-solar-301289466.html" target="_blank" rel="noopener">signed</a> a long-term polysilicon supply agreement with a subsidiary of JA Solar. Under the pact, Daqo will provide JA Solar with high-purity mono-grade polysilicon in a total amount of approximately 78,200 MT between July 2021 and December 2025. The actual volume and prices will be negotiated monthly by both parties according to market conditions. As part of the supply agreement, JA Solar will make an advance payment to Daqo.
Solar energy supplier <a href="https://starsightenergy.com/" target="_blank" rel="noopener">Starsight Energy</a> has acquired a 50% stake in the East African operations of Premier Solar Group, a commercial and industrial solar company. The deal marks the company&#8217;s expansion into East Africa. The transaction will see the creation of Starsight Premier Energy Group, which will offer sustainable power and cooling-as-a-service and battery storage solutions to commercial and Industrial clients in Kenya, Uganda, Tanzania, and Rwanda.
Nevada-based geothermal company Ormat has <a href="https://investor.ormat.com/news-events/news/news-details/2021/Ormat-Signs-15-Year-Power-Purchase-Agreement-With-Clean-Power-Alliance-for-Heber-South-Geothermal-Facility/default.aspx" target="_blank" rel="noopener">signed</a> a 15-year power purchase agreement with electricity provider Clean Power Alliance (CPA). Under the terms of the agreement, CPA will purchase 14 MW of clean, renewable energy from Ormat&#8217;s facility located in Imperial Valley, California. The baseload geothermal power is expected to advance CPA&#8217;s greenhouse gas emission reduction goals while enhancing overall reliability for CPA&#8217;s more than one million Southern California customer accounts.

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