Europe’s renewable Power Purchase Agreement (PPA) market recorded close to 19 gigawatts (GW) of newly contracted capacity in 2024, driven by heightened activity in Spain and Germany, according to a new report by Wood Mackenzie.
The Europe Renewables PPA Tracker highlights that solar photovoltaic (PV) and wind power accounted for approximately 80% of the total contracted volume, with both technologies contributing nearly equally.
Spain and Germany jointly represented 30% of the total capacity secured last year. Other notable contributors included Poland, the United Kingdom and Greece, which also featured prominently in both corporate and utility PPA agreements, as well as route-to-market deals.
“We’re seeing a shift towards more sophisticated PPA structures,” said Dan Eager, research director for European power and renewables at Wood Mackenzie. “Hybrid storage arrangements that combine renewables and batteries are gaining traction, particularly among energy-intensive industries and data centres seeking 24/7 energy matching.”
The report notes that corporate PPAs were the dominant structure in 2024, making up more than 70% of all agreements. Technology companies and data centre operators were among the most active offtakers.
“The technology and data sectors were the primary drivers of offtake activity in 2024,” Eager said. “These power-intensive businesses are increasingly relying on PPAs to sustain their future operations and meet sustainability goals.”
Iberian markets, particularly Spain and Portugal, remained attractive locations for solar PV and onshore wind investments, despite challenges posed by pricing volatility and curtailment risks.
Looking ahead, Wood Mackenzie’s 2026 outlook points to sustained opportunities for competitively priced PPAs, especially in solar PV and selected onshore wind markets. The report also suggests that hydrogen-based PPAs could emerge, contingent on regulatory developments.
Eager noted that the growing share of low-cost renewable generation is reshaping wholesale power markets: “The growing influence of low-cost renewables on wholesale price formation is leading to increased volatility. Capture rates are set to decline over the next five to seven years, as demand growth lags supply and market flexibility is tested. Despite this, opportunities for well-structured, mutually beneficial PPAs remain.”
