International Business: Global renewable power prices soar on heavy demand, chaotic supply chain – Gulf Digital News

International Business: Global renewable power prices soar on heavy demand, chaotic supply chain – Gulf Digital News

Prices for wind and solar power in major global markets have climbed nearly 30% in a year as developers have struggled with chaotic supply chains and surging costs for everything from shipping to parts to labor, according to a report published on Wednesday.

Contract prices for renewables jumped 28.5% in North America and 27.5% in Europe in the last year, according to a quarterly index by LevelTen Energy that tracks the deals, known in the industry as power purchase agreements (PPAs).

In the first quarter alone, prices rose 9.7% in North America and 8.6% in Europe, LevelTen said.

Economic, logistical and labor market disruptions during the coronavirus pandemic have worsened since the Russian invasion of Ukraine, reversing a decade of cost declines for the renewable energy sector.

There is a risk higher costs could slow demand growth at a time when the United Nations has called for clean energy to expand more rapidly to avoid the worst effects of a warming climate.

"We still need keep the foot on the gas here," Rob Collier, vice president of LevelTen's energy marketplace, said in an interview.

Aggravating challenges in North America, the sector is uncertain whether U.S. lawmakers will extend tax breaks for renewable energy facilities, part of