The European market for bilateral power purchase agreements (PPAs) is currently undergoing a period of slowdown.

In May 2025, just 14 agreements were signed, with a total disclosed capacity of 350 MW, according to the monthly market trends report published by Our New Energy (ONE). The decline has been steady: the cumulative volume in 2025 is 40% lower than in 2024.

Despite the downturn, solar energy remains the dominant technology, accounting for 52% of the capacity signed in May. Wind power remains close behind, reflecting a balanced presence of both technologies, though neither has been able to reignite market momentum.

According to Miguel Marroquín, Managing Director at ONE, “this highlights that, for the moment, there is limited outlet for solar projects, and wind PPAs are not being signed either, despite the abundance of available projects.”

Throughout the month, all signed agreements were corporate PPAs, with no presence of contracts with utilities or energy retailers. The technology, telecommunications and food sectors led the activity, with buyers such as Google (108 MW), Iliad Group (60 MW), Auchan Polska (107 MW), and Musgrave (36 MW).

Geographically, Poland led the May market, with over 125 MW contracted across just three deals, followed by Ireland and France.

This pattern mirrors trends seen in previous months, with large corporations continuing to seek renewable energy procurement in emerging markets or those offering tax incentives and supportive regulatory frameworks.

The report also notes that the average contract size in May was 31.8 MW, and that all disclosed volume stemmed from individual agreements, excluding hybrid or multi-technology deals.

The cumulative trend since 2021 confirms that corporates are the main drivers of the PPA market in Europe, both in terms of the number of deals and contracted volumes, with a clear preference for solar PV, although its share has slightly declined in 2025 compared to previous years.

On the seller side, Iberdrola continues to lead the annual ranking by contracted volume, while Amazon remains the largest buyer so far this year.

This scenario marks a transitional phase for PPAs in Europe. The ongoing contraction in volumes signed in 2025 raises questions about future price dynamics, the impact of regulated markets, and the long-term competitiveness of renewable energy developments.