State of the European Solar PPA Market: Trends & Key Developments

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Recording of Tuesday, May 06, 2025 | The smarter E Europe Conferences 2025 | Conference Program | Language: English | Duration: 15:41 .

PPA Market Transformation: Record Deals, Hybrid Models, and BESS Integration Redefine Renewable Energy Pricing in Europe

Pexapark AG, a prominent provider of renewable energy pricing intelligence in Europe and the US, examines the Power Purchase Agreement (PPA) market's evolution. The European PPA market achieved record growth with over 300 deals last year, primarily driven by corporates overtaking utilities as major buyers. This shift is influenced by challenges such as decreasing average deal sizes—now under 50 megawatts—and lower solar capture rates compared to baseload prices in key markets like Germany, France, and Spain. Consequently, there's a move towards higher-priced markets or hybrid PPAs combining wind and solar to mitigate risks from fluctuating capture rates. Spain remains strong due to its adoption of hybrid PPAs totaling 2.7 gigawatts last year; Italy benefits from high prices and minimal cannibalization effects on renewables. The landscape shows an increasing preference for hybrids blending solar with wind or hydro power among corporates seeking diversified sources while independent producers pursue more balanced portfolios through wind/hydro projects alongside Battery Energy Storage Systems (BESS). These dynamics indicate a decoupling from traditional gas-based pricing mechanisms as renewables gain self-determination via innovative PPA structures attracting traders and tech-driven optimizers into this expanding sector.

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Speaker

Itamar Orlandi
Director - Commercial Strategy
Pexapark AG
Switzerland

Talk of session: Corporate Power Procurement & PPAs - Navigating the Complexities of Renewable Electricity Sourcing

The European solar PPA market continues to thrive, with several major deals announced in recent months despite an increasingly complex and volatile power market. Corporations seeking a cost-effective, ESG-compliant electricity supply are pushing power suppliers to adapt by offering shorter-term, multi-technology PPAs and innovative contract structures. Navigating these complexities is key to securing a stable and low-cost energy supply at a time when European industry is struggling to remain competitive. This session will look at: Recent developments in Europe's solar PPA market Different PPA structures and emerging models Financial, regulatory, and contractual challenges in corporate PPAs.

Further Talks of this session:

Welcome & Introduction

Speaker

Nikola Gazdov
Chairman
APSTE - the Association for Production, Storage and Trading of Electricity
Bulgaria

To Talk

PPAs Main Challenges and Opportunities

Speaker

Mauricio Garrido
PPA Origination Director EU
EDP Renewables
Spain

To Talk

Financial & Credit Risks: De-risking Corporate PPAs for Buyers and Sellers

Speaker

Jan Knievel
Head of Origination
Sunnic lighthouse GmbH
Germany

Recording of presentation not authorized for publication.

Understanding PPA Models: From Traditional to Hybrid and Multi-Buyers

Speaker

Beatriz Guillén Sánchez-Hidalgo
Head of Power Markets Southern Europe
Lightsource bp
United Kingdom

Recording of presentation not authorized for publication.

Panel Discussion: Securing Long-Term Value in Corporate PPAs - Strategies & Best Practices

To Talk

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