European PPA market rebounds as Italy and Spain lead corporate momentum

The European Power Purchase Agreement (PPA) market showed signs of recovery after a weak August, reaching 19 contracts for a total capacity of 653 MW, according to the latest report by Our New Energy (ONE). The figure surpasses the 437 MW recorded in August, although it remains well below the annual peak of 1.8 GW reached in July, reflecting seasonal moderation and continued caution among corporate buyers amid short-term price volatility.

The average contract size stood at 41 MW, in line with the quarterly average, and 71% of the signed capacity corresponded to photovoltaic projects. However, ONE’s year-on-year analysis shows that the solar share within total PPAs in 2025 (53%) is lower than in 2024 (58%) and 2023 (60%), confirming a slight diversification towards hybrid or wind agreements.

Italy led the market with over 200 MW distributed across six agreements, mainly in the pharmaceutical, food and transport sectors, consolidating its role as an emerging hub for industrial PPAs. Among the buyers were Teva Pharmaceutical Industries, Gruppo FS, Stellantis, Selex Gruppo and KGHM, while Enery, ERG, ib vogt and BRUC ranked among the most active generators. Spain followed with five agreements totalling 134 MW, driven by large consumers such as Leroy Merlin, Heineken and Obramat, in partnership with energy players like Iberdrola and Engie. Together, both countries accounted for more than half of Europe’s total signed capacity during the month, reinforcing Southern Europe’s position as the epicentre of the PPA market.

All contracts signed during the period were corporate agreements, a trend that has consolidated over the past four years. Since 2021, the number of corporate PPAs has grown steadily, peaking at 268 operations in 2024, according to ONE’s historical data. The technology, industrial and retail sectors concentrated demand, with companies such as VIRTUS Data Centres, AtNorth, Bundesdruckerei, AGCO and Network Steel among the new European buyers. The report highlights that solar energy remains the main driver, although its share of total transactions shows a slight decline, while hybrid or wind-linked contracts gain ground in Nordic and Baltic markets.

Annually, Iberdrola maintains its leadership among PPA sellers with 1,291 MW contracted, followed by OX2 (472 MW) and Enfinity Global (420 MW). On the buyer side, Amazon remains Europe’s largest offtaker with 995 MW, followed by Bord Gáis Energy (629 MW) and Renfe (430 MW). The consistency of these actors at the top reflects a maturing corporate market, where large groups secure more stable price and supply conditions.

With the final quarter of the year underway, Our New Energy anticipates a moderation in signing pace compared to the first half, although the project pipeline suggests that 2025 could still surpass total figures for 2024. The evolution will depend on new long-term framework contracts, such as CfDs and indexed PPAs, and on the recovery of financial activity in utility-scale projects across key markets like Spain, Italy and Germany.