During April 2025, the European market for Power Purchase Agreements (PPAs) maintained a high level of activity, with 24 contracts signed totalling approximately 1.45 GW of capacity, according to the analysis published by Our New Energy (ONE).

Onshore wind energy was the protagonist of the month, accounting for 61% of the contracted capacity, whilst the share of solar energy declined compared to previous months. This consolidation of wind power marks an important technological transition, following several periods dominated by photovoltaic (PV) energy.

“We are seeing that wind, both onshore and offshore, is assuming an increasingly predominant role over solar in the European PPA market,” explained Miguel Marroquín, Managing Director of ONE, in dialogue with Strategic Energy Europe.

Geographically, Finland led contracted capacity in April with more than 572 MW, followed by Germany, which reached 229 MW. Nevertheless, Spain stood out as the country with the highest number of agreements signed — four contracts totalling 56 MW — reflecting the continued interest of the corporate market in mid-sized projects.

In terms of contract structure, 64% of the volume corresponded to corporate PPAs (cPPAs), representing a significant decrease compared to the levels recorded in previous months, when they exceeded 85%.

“Despite this temporary decline, we do not expect this trend to become consolidated in the long term,” Marroquín remarked, highlighting the structural strength of corporate demand in the European market.

Regarding size, the average of agreements signed in April stood at 76.3 MW, marking a considerable increase compared to previous periods and evidencing a growing preference for larger-scale projects.

Market Evolution: Trends Observed During the First Quarter of 2025

The behaviour of the PPA market in April cannot be analysed in isolation. Observing the first four months of 2025, several underlying trends emerge that are shaping the new European energy landscape:

Growing volume of contracted capacity: From 756.3 MW signed in January, the market expanded to 1,233 MW in February, 1,040 MW in March, and reached 1,450 MW in April. This reflects a cumulative growth of 92% compared to the beginning of the year.

Sustained increase in average PPA size: From an average of 37.8 MW in January to 76.3 MW in April, the size of contracts nearly doubled within just four months.

Technological transition from solar to wind: While in February and March solar energy accounted for more than 60% of contracted capacity, in April onshore wind energy took absolute leadership with 61% of the volume.

Volatility in corporate participation: Although corporate PPAs represented 87% and 89% of volume in February and March respectively, in April they dropped sharply to 64%. Experts, however, anticipate that this decline will not consolidate as a long-term trend.

As for the main market players, Iberdrola and Amazon maintained their dominance as the leading seller and buyer of PPAs respectively throughout the first quarter.

One Insights - PPA market update January 2025 One Insights - PPA market update April 2025