Energy Knect
by on June 14, 2021

Highlights from Renewable Energy Trends Report May 2021

Rystad Energy, June 2021

Utility solar PV PPA prices are up 2% from $55/MWh in 2020 to $56/MWh in April 2021. A total of 7.1 GWAC of solar PPAs have been signed year-to-date.

Utility wind PPA prices are up 2% from $41/MWh in 2020 to just under $42/MWh in 2021, with 5.1 GWAC of onshore wind and 0.6 GWAC of offshore wind PPAs announced so far this year.

Global auctions saw the award of 1.7 GWAC from two countries (Germany and Macedonia) in April, bringing the total to 30.4 GWAC in 2021 so far. Additionally, more than 9.9 GWAC of capacity is awaiting awards and 31.3 GWAC of auctions are ongoing. 

April saw 8.3 GWAC worth of M&A transactions from operating assets and 20 GWAC of development projects. This was a record month for 2021, exceeding January’s peak.

Around 32.6 GWAC of new renewable energy projects were announced in April. Year-to-date, a total of 124 GWAC of projects have been announced.

South Korea eyes large-scale solar PV projects to meet 2030 target

South Korea is launching  its largest-ever solar PV tender in July, offering 2 gigawatts (GW) of capacity. The country is likely to open another 2 GW auction in the second half of the year as it races to meet its ambitious solar target of over 30 GW by 2030. Rystad Energy expects large-scale projects will attract more bids from developers than small-scale ones, which have so far supported installations across the country, as a new category for 20-megawatt (MW) projects and above was introduced. As South Korea’s PV project pipeline to the end of the decade is currently short by almost 7 GW, this new category – designed to support large-scale PV development – is necessary for the country to achieve its solar goals.

The country had installed 15.6 GW of solar PV by the end of 2020, mostly from small-scale projects of up to 3 MW of capacity. Installed large-scale solar accounted for just 2.5 GW at the end of last year. South Korea held 8.3 GW of capacity in the pipeline at the end of April from projects at various stages of development. Some notable developments expected to start construction in 2021 include the 200 MW Non-geum resident-backed solar project and the SK E&S’s 100 MW Taepyeong PV development, both located in the Jeollanam-do province.

However, the country requires an additional 6.8 GW of capacity to meet its 30.8 GW goal by 2030. This target could potentially be best achieved with large-scale solar projects developed on the back of the upcoming tender’s newly introduced category.

Watts Changed Australia: New renewable projects in March and April

In March and April 2021, 13.05 gigawatts (GWAC) of renewable energy capacity in Australia was added to the RenewableCube, spread over 28 new assets owned by 17 companies. The projects added to the project pipeline during this period brought an additional 11.70 GWAC of wind capacity, 1.21 GWAC of lithium-ion batteries and 0.15 GWAC of solar PV, boosting Australia’s total renewables capacity to 246 GWAC over 1,112 assets.

E&Ps ink more renewables deals in the first quarter than the whole of 2020

The renewable energy portfolios of global petroleum exploration and production companies (E&Ps) swelled rapidly in the first quarter of this year – to more than 46 gigawatts (GW) at the end of March from just over 35 GW three months earlier. The first quarter saw the 13 players tracked by Rystad Energy ink over 10 GW worth of mergers and acquisitions, and more than 7 GW of joint venture deals, as they race to meet their ambitious 2030 renewables targets. The same E&Ps acquired a total capacity of 18 GW in 2020. While joint ventures were the preferred strategy of these companies last year, M&As have come through as the favourite for 2021 so far.



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