The prices of the European Power Purchase Agreement (PPA) decreased in February in the middle of the prices of energy, but Dealstroom stable, says Swiss Energy Consultancy Pexapark, and noted that a “historic” 40-year-old, 15 MW PPA was signed in Wales.
The European PPA prices fell in February, which reflects a wider fall in energy council prices, while the transaction activity remained stable despite a fall in the volume, according to the monthly PPA report from Pexapark for March 2025.
However, the Swiss Energy research agency noted that a record-breaking 40-year-old solar PPA was signed in Wales last month. It also emphasized emerging trends in Battery Energy Storage Systems (BESS) of the recent Energy Storage Summit 2025 in London.
Pexapark’s Euro Composite, a benchmark for 10-year-old “pay-as-produced” PPA prices, closed February for € 50.25 ($ 54.35)/MWH, a decrease of 4.3% of € 52.53/MWh in January. The decreasing falling raw materials prices, in which the German CAL26 -power contract slips to € 84.57/MWH and the Dutch TTF CAL26 gas contract that ended at € 36.90/MWH, after a peak earlier in the month.
Micht again after a cold Snap in February, combined with Bearish gas market signals, the decline, Pexapark said. Portugal registered the largest decrease in the PPA price at 10.9%, as a result of recovery price, while the Nordic prices rose by 0.6%.
February PPA Deal Flow hit 679.8 MW in 24 agreements, a decrease of 14% volume and 4% fewer deals than January, according to the consultancy. In comparison with the record of February 2024 2,568 MW over 54 deals, this year’s figures reflect a capacity drop of 73.5%. Remarkable deals include a 130 MW Virtual Multi-Buyer PPA in Spain between X-Elio and the Energize program, a 98 MW Multi-Country Solar PPA between BNZ and Kimberly-Clark, and a 57 MW Solar PPA in Spain Linking Zelestra and Tesla.
Pexapark excluded the 40-year-old, 15 MW solar PPA of the British developer Innova in Wales with Dŵr Cymru (Welsh Water) as a particularly remarkable deal, which exceeds the previous 30-year-old Tenorrecord of Europe. The agreement, bound by the Wrexham and CEFN solar farms, marks a shift to longer term agreements, whereby the construction was established for 2025.
“We have seen PPAs in Europe in the long term, ranging between five and 25 years, with the longest tenor registered for 30 years,” Pexapark noted, which described the Welsh PPA as a “historical” deal.
The research agency quoted one assets -owner Energy storage top 2025 In contrast to the United States, Europe rewards the operational solar and BES-Activa separately, with AC-linked setups that prefer their flexibility. However, the appreciation problems continue to exist, where an investor says Pexapark that it can be difficult to appreciate co-location exactly, “at least no more than independent storage in a portfolio.” The discussions on the top are reportedly also focused on toll agreements and financing innovation as important motives of implementation, the company said.
Pexapark also noted that the new transition Fer X -Decree of Italy, effectively 28 February 2025, is ready to speed up the growth of renewable energy consumption by offering incentives for 10 GW solar sun, 4 GW wind and extra capacity for smaller hydro and bioga projects at the end of this year.
It said that the stable deal stream of February for smaller volumes reflects a ripening PPA market, while continuous discussions in the Bess sector underline how the industry adapts to new challenges and opportunities.
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