Pexapark’s platform saw a notable 14% year-on-year increase in long-term power purchase agreements (PPAs) in 2024, with at least 316 agreements signed. This growth was primarily driven by corporate buyers, contributing to a 26% rise in deal-making activity despite a decline in volume size.
The market also welcomed 157 new corporate players into Europe’s PPA market, a sign of growing interest from businesses in securing long-term renewable energy contracts. A stabilizing trend in price volatility over the past 18 months played a significant role in facilitating these deals, though factors such as the risk of cannibalisation, high levels of energy costs, and increased competition from contracts-for-difference (CfD) schemes posed challenges for corporate buyers.
Spain maintained its position as the leading market for PPAs, securing 4.66GW across 47 deals, surpassing Germany, which reached 2GW from 48 transactions. Iberdrola remained the top seller, contracting 1,251 MW across 15 deals. Other notable sellers included BRUC (532 MW) and Renewable Power Capital (517 MW).
Amazon led the buyer side with 1,503 MW across six deals, followed by Google with an estimated 638 MW and Microsoft with 540 MW.
Luca Pedretti, COO and Co-Founder of Pexapark, commented, “In 2024, the PPA market proved its ability to innovate facing the new realities of increased renewables penetration, as the challenges of negative pricing and cannibalisation have forced a rethink of traditional approaches.” He added, “Multi-technology PPAs for firmer profiles, multi-buyer models, and innovation in energy storage offtakes signal strong resilience. By adapting to these new realities, the industry can overcome obstacles and continue driving the energy transition forward.”
Pexapark’s 2024 report highlights the evolving dynamics of the PPA market as it adapts to an increasingly competitive and volatile energy landscape.
