The PPA market in Europe is advancing strongly in 2025, reflecting a growing commitment to long-term agreements that ensure the supply of renewable energy in a context of energy transition and price stability.

In February, 28 PPAs were signed on the continent , with a total capacity of 1,233 MW, where solar energy maintained its dominance with 62% of the contracted capacity.

However, the growth of wind PPAs is marking a transformation in the market structure.

Our New Energy explains that this growth is a response to a greater diversification of demand and to the need for companies to guarantee clean energy with predictable prices in the long term.

In an interview with Strategic Energy Europe, Miguel Marroquín, Managing Director of the consultancy firm in Spain, comments that companies are increasingly looking for options that offer them stability and competitiveness, which has driven the evolution of the PPA market throughout Europe .

Spain leads the European PPA market again

In February, Spain consolidated its position as the country with the highest volume of transactions, with 7 agreements exceeding 550 MW of contracted capacity . Germany and Poland also recorded high activity, but the Spanish market continues to set the pace in Europe.

According to Marroquín, the country has managed to remain at the top of the European market thanks to its cost competitiveness and the confidence it generates in buyers .

He points out that investors and large energy consumers have identified Spain as a strategic market, since it combines abundant renewable resources with favourable market conditions.

Our New Energy highlights that this leadership is not circumstantial, but rather a consolidated trend. The firm points out that Spain has been leading the ranking of PPA transactions in Europe for months, which demonstrates its strength as a centre for investment in renewable energy .

The rise of wind energy in European PPAs

Although photovoltaics remains the dominant technology, wind energy has gained share in the first months of 2025 .

While in February 62% of contracted capacity came from solar energy, in the year-to-date the proportion of photovoltaic transactions has fallen to 47%.

Marroquín points out that this change in trend is due to a greater diversification of renewable energy sources within PPAs.

He explains that companies are seeking a balance between solar and wind energy to ensure a more constant supply and reduce risks associated with the variability of each technology.

The consultancy believes that this phenomenon represents a natural adjustment in the market, as companies are learning to better structure their renewable energy purchase contracts.

In this sense, it is estimated that the share of wind power will continue to increase in the coming months, as more companies incorporate this technology into their supply strategies.

Big tech corporations dominate PPA purchases

The technology sector remains the largest buyer of renewable energy through PPAs in Europe. In February, Amazon established itself as the most active player , signing four contracts in three different countries, two of them above 200 MW.

Other companies such as Kimberly-Clark and Tesla have also increased their participation in such deals.

Our New Energy explains that large multinationals are increasingly betting on PPAs as a key strategy to achieve their sustainability goals and reduce their exposure to the volatility of the electricity market.

Marroquín points out that these companies are not only looking for renewable energy, but also value the price stability that these long-term contracts offer .

The growing role of corporate PPAs

The report reveals that 87% of the contracted capacity in 2025 corresponds to corporate PPAs , which shows a consolidation of this contracting model within the private sector.

Furthermore, 74% of this year’s transactions have been driven by large companies, seeking to guarantee the supply of clean energy in a context of volatile electricity prices.

As Marroquín points out, companies from multiple sectors have found PPAs to be an efficient solution to meet their decarbonization goals .

The company also notes that the manufacturing, chemical, steel and automotive industries have shown growing interest in these agreements, as they allow them to align their energy consumption with sustainability policies and improve their competitiveness in global markets.

Our New Energy expects this phenomenon to intensify in the coming years, with more companies adopting long-term renewable energy procurement strategies.

Outlook for 2025: consolidation of the European PPA market

The figures in the report confirm that the European PPA market is in full expansion, with an average of 53.6 MW per signed contract and an increase in the diversity of technologies and sectors involved .

Analysts predict that this trend will continue in the coming months, with a greater share of wind energy and sustained growth in business demand.

For Marroquín, the market’s challenge will be to maintain this growth rate without generating imbalances between supply and demand .

He stressed that the evolution of the sector will depend largely on the ability of developers and buyers to adapt to the new conditions of the energy market, especially with regard to prices, regulation and availability of infrastructure.

With a favourable outlook and growing interest from large corporations, 2025 could become a key year for the consolidation of PPAs as a fundamental tool in Europe’s energy transition.