In a landmark year for the renewable energy sector, Europe experienced an unprecedented surge in the number of contracted renewable energy Power Purchase Agreements (PPAs) in 2023, with deal count and volume soaring by 65% and 40% respectively, according to a report by Pexapark.
The European PPA Market Outlook 2024 detailed a substantial increase of 16,200MW in disclosed contracted volumes, marking an impressive 40% surge from the previous year. The report also highlighted a remarkable 65% rise in deal count, totaling 272 PPA announcements, compared to 2022.
Pexapark noted that the market has now entered what it terms its ‘Golden Era', underpinned by factors such as decreased volatility compared to the peaks of 2022, a stabilizing pricing environment, and a growing maturity among both buyers and sellers in managing energy risks. These conditions have led to a wave of innovations and advancements in the European PPA market, signaling a new chapter in the continent's energy transition.
While corporate entities were key drivers, the report highlighted an improved balance between corporate players and utility offtakes. Corporates secured 11,950MW, reflecting a 28% increase from 2022, across 218 deals, with a significant deal count surge of 66% year-on-year. Utilities represented 23% of the volumes, an increase from the previous year's 18% share, and 18% of deal count, translating to 4,020MW – more than double the 1,960GW recorded in 2022, across 48 deals, a 60% increase from the previous year's 30 deals.
Spain maintained its leadership position in the market for the fifth consecutive year, with 4,670MW in volumes and leading in deal count. Germany ascended to the second position, recording 3,730MW in volumes in 2023. The solar PV sector in Germany played a pivotal role, contributing 1,770MW across 18 deals, along with offshore wind accounting for 1,730MW across 14 deals. The report highlighted the resurgence of Germany's solar sector, bringing it back into the spotlight.
