Recently, LevelTen Energy released its latest renewable energy power purchase agreement price report, pointing out that while the average power purchase agreement price in the United States has been steadily rising, the power purchase agreement price in Europe has fallen sharply.

The report shows that the average price of solar power purchase agreements signed in the second quarter of 2024 fell 27% from the previous quarter to an average price of 62.83 euros/MWh (68.35 US dollars/MWh).

The average level of European solar power purchase agreement prices has fallen below 70 euros per MWh (76.15 US dollars) for the first time since the second quarter of 2022, which is the second consecutive quarter that this has happened.

The European wind power industry has also experienced what LevelTen analysts call "a difficult few years", with the average price of wind power purchase agreements signed in Europe falling 29% month-on-month. The company pointed out that these price declines are largely due to broader political uncertainty in Europe, and a series of elections held on the continent have disrupted many markets and brought uncertainty to many markets.

“The EU parliamentary elections in June tilted the legislature to the right,” the firm wrote in its latest report. “This change, and the new coalitions that could be formed as a result, could hamper the passage of new EU climate proposals in the coming years. However, important initiatives like the Green Deal are unlikely to be targeted.”

This shift in political power to the right is also reflected in Europe’s national political arena, with the rise of right-wing politics threatening renewable energy policies in countries such as France.

Last week, France awarded just 180MW of new rooftop solar system capacity in its latest tender, half the amount awarded in the previous tender and raising questions about the country’s solar future.