Our New Energy has published its analysis of the European Power Purchase Agreement (PPA) market for January 2025, highlighting a particularly active start to the year. During the first month, 25 PPAs were signed, the highest number recorded in January since 2022, with a total capacity of 756.3 MW and an average agreement size of 37.8 MW.
Spain continues to solidify its position as one of the leading markets in this segment, ranking as the second country with the highest number of transactions, just behind Germany. This reinforces Spain’s role as a key destination for renewable energy investment through long-term contracts.
Corporations Remain the Market’s Main Drivers
Companies continue to lead PPA demand, both in terms of the number of agreements and total contracted capacity. Notably, the energy and services sectors signed four of the largest agreements this month. Additionally, heavy industries (such as chemicals, pharmaceuticals, steel, metallurgy, and materials) are turning to renewable PPAs to secure competitively priced energy.
Technological Shift: The Rise of Wind Energy
Over the past four years, solar photovoltaic energy has dominated European PPAs. However, in January 2025, its market share dropped significantly from 57% in 2024 to 36%. This shift highlights the growing role of wind energy, particularly offshore wind, in the PPA market, signaling a diversification in renewable energy supply.
According to Our New Energy’s report, this trend could set a new pattern in the sector, though its consolidation will depend on future demand and the competitiveness of different energy sources in the coming months.
0 Comments