Industry Analysis
Nov 21, 2023

Why is West Wind Popular?

Wind PPAs at ERCOT’s West hub were among the most popular products on RenewaFi over the past two quarters.

In fact, we facilitated two matches for West hub wind:

  1. 5-year, unit contingent, 200 MW PPA
  2. 2. 7-year, unit contingent, 150 MW PPA

Let’s dig into why:

Declining offer prices: the median offer price dropped by $2.30, from $36.10 to $33.80.

Consistent market value: the value of the median offer increased slightly by $0.29, from $33.35 to $33.64.

When offer prices come in significantly below their value, they start becoming attractive to offtakers. So as prices decreased and value stayed flat, the most aggressive West wind offers started to pique offtakers’ interest.

The offtakers who were willing to increase their bids into the high $20s and low $30s saw significant engagement in the marketplace, which led to two matches.

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