The One Insights report by Our New Energy provides a clear picture of the European PPA market, highlighting that Spain signed the largest volume of these agreements in September 2024, totaling 483.2 MW.

This figure is not an isolated occurrence but rather part of a sustained trend in recent years, reflecting the country’s commitment to the energy transition and the crucial role of corporations in this process.

“What’s most notable is that Spain remains the European leader for yet another month and has added as much capacity under PPAs as all the other countries in the analysis combined,” emphasized Alejandro Labanda, Director of Ecological Transition at beBartlet.

Speaking to Energía Estratégica España, Labanda highlighted the growing efforts of the pharmaceutical sector to decarbonize, evidenced by the fact that the main offtaker in September was the Energize Program, a coalition of pharmaceutical companies.

Companies like Salzgitter, Google, and Amazon are also among the top PPA buyers, reinforcing the trend toward decarbonization of key sectors through clean energy contracts.

El promedio mensual de capacidad transaccionada ha alcanzado los 1.123 MW, una cifra que supera los 997 MW de 2023. 

Prices

The latest report from LevelTen reveals that solar PPA prices in Spain have experienced a year-on-year decrease of 16%, continuing the downward trend in pool market prices.

While it has been suggested that the minimum viable price for solar photovoltaic projects is €35/MWh, the average appears to have reached a floor of €39/MWh, which is expected to remain stable over time.

According to the report, 79% of the MW contracted under PPAs in September came from solar installations.

In the wind sector, PPA prices for Q3 2024 are around €55.50/MWh, which is also considered to have reached its floor.

On a year-on-year basis, average wind market prices across the continent have dropped by 11.1% and continue to recover from previous years.

The growth in the number of transactions has also been remarkable, reaching 222 annual transactions in 2023, compared to 112 in 2020. Although the market has shown slight declines in recent months, it remains a crucial pillar for the expansion of renewable energy in Europe.