2024 was marked as the year of the “Big Adjustment” for the European PPA market. According to Pexapark’s Renewables Market Outlook 2025, contracted volumes fell by 11% year-on-year, reaching 15.2 GW. This was largely driven by utilities stepping back in the face of emerging risks such as negative pricing and low capture rates. However, appetite for deal-making remained strong, leading to a record-breaking 316 long-term agreements and a wave of contractual innovation.
In terms of total volumes, Spain remained the leading market with 4.66 GW, followed by Germany (2.04 GW), the United Kingdom (1.03 GW), and Italy (1.05 GW). These four markets together accounted for nearly 60% of all disclosed contracted capacity across Europe.
Negative pricing: the new dominant risk
“Negative price risk accelerated faster than many anticipated,” states Mathieu Ville, VP of PPA & BESS Transactions at Pexapark. The report shows that markets such as Finland, Germany and Spain broke records for negative price hours. Finland alone registered 717 negative hours in 2024—a 50% increase from 2023—while Spain experienced negative pricing for the first time, totalling 244 hours.
In response, the industry began redesigning PPA clauses to reallocate risk. “Like any energy-related risk, this one needs to be shared sensibly to ensure long-term sustainable contracts,” Ville asserts.
Corporate boom: more deals, smaller volumes
At the same time, corporate PPAs gained unprecedented prominence. While utility PPAs dropped 59% in volume and 38% in deal count, corporate PPAs rose by 26%, reaching a record 316 agreements and 5.2 GW. Corporate players now account for over 80% of deals by count. This surge was driven by both established players and 157 new market entrants.
“The market didn’t lack buyers—it lacked large volumes,” analysts at Pexapark explain. The average size of corporate PPAs dropped from 58 MW in 2023 to 47 MW in 2024, reflecting both increased participation from smaller players and growing caution around market risks.
Among the countries that led in corporate PPA activity were Spain, Germany, France, Ireland and the Nordics, where supportive regulatory frameworks and renewable project pipelines aligned with decarbonisation goals.
Utilities shift to a facilitation role
Utilities began taking on a more intermediary role within the ecosystem, focusing on structuring deals, providing energy intelligence, and connecting projects with corporate offtakers. “Utilities buy risk to resell it, while corporates buy volumes to consume and decarbonise,” the report notes.
New contractual formats gain traction
The market transformation also led to the rise of innovative contract formats. In 2024, multi-technology PPAs grew by 219% in volume, totalling 2.7 GW across 32 deals in 12 countries. These contracts offer more predictable supply profiles and more attractive pricing.
“Multi-buyer PPAs also gained significant traction,” notes Maritina Kanellakopoulou, Senior Insights Analyst at Pexapark. Six such deals were signed in 2024 across Spain, Denmark, France and Ireland, totalling 315 MW. Aggregated demand and credit guarantees from financial institutions or governments helped support these structures.
Storage becomes essential to the equation
Energy storage also emerged as a key component of the market. Power Storage Agreements (PSAs) and tolling agreements were deployed in Germany and the UK. These structures provide flexibility and bankability, helping both developers and investors manage risk. “The cost of capital is the biggest hurdle in the energy transition. Tolling agreements allow infrastructure-like business models with long-term revenue visibility,” stated speakers at the Energy Storage Summit, cited by Pexapark.
On-site PPAs, green hydrogen and regional trends
On-site PPAs surged by 90%, with 19 deals totalling 562 MW across 11 countries. Although uncertainty remains in the green hydrogen sector, eight PPA deals were signed in 2024 for H2-related projects, totalling 407 MW—most of them linked to subsidised schemes.
Regionally, Spain remained the top market for contracted volume, while Germany led in a number of deals with 48 long-term PPAs—a 9% year-on-year increase. The United Kingdom and Italy also maintained high levels of activity. Among corporate actors, Iberdrola was the top seller, with 1,251 MW—up 38% from 2023—across five countries. On the buyer side, Amazon maintained its leadership, contracting over 1.5 GW across Spain, Greece, the UK and Ireland.
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