[SMM PV News] Middle East 'LNG' Strikes Impact PPA and BESS Economics

Published: Apr 1, 2026 09:05

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Strikes on Middle East 'LNG' infrastructure are affecting long-term 'PPAs' and battery energy storage system ('BESS') economics, according to Swiss firm Pexapark. Lead analyst Nicolas Briet noted that supply risks from Qatar have tightened European fundamentals, visibly impacting 'PPA' valuations. A 10-year solar pay-as-produced 'PPA' in the UK saw a 19% fair value increase. Despite improved economics, 'PPA' transactions may remain slow due to buyer caution and rising equipment costs linked to higher energy prices. Conversely, 'BESS' is directly benefiting from increased intraday volatility and wider price spreads. Pexapark also reported 30 new 'PPA' deals in February 2026, the highest monthly volume since February 2024.

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