Pexapark’s European PPA index surpasses €100/MWh for first time

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In a recent report on renewable power purchase (PPA) deals in Europe, Swiss energy consultancy Pexapark found that prices increased by 9.3% in July.

“PPA activity remained at relatively low levels, although July saw an uptake in both deal count (+50%) and contracted capacity (+57%), with interesting deals coming from Spain, Germany, Italy and Greece,” said Pexapark. “The strong upward trend is on the back of rallying underlying forward prices, which made our index reach levels above €100/MWh for the first time.”

In July, around 596 MW of capacity was built in Europe, involving 15 deals.

Spain saw some of the most interesting deals of the month, including the largest PPA by volume between Acciona Energía and 20 industrial offtakers for 1 TWh for several projects with undisclosed capacity,” said Pexapark. “In Greece Cero and Axpo signed a 70 MW solar PPA, which is the second ever PPA announced in the country. What’s more, two new deals were announced in Italy, marking a slight uptake in deal flow in recent months.”

For the first six months of the year, Pexapark said there was a decrease of around 15% in PPAs. Roughly 44% less new capacity was built than in the first half of 2021, which was the strongest period to date. In June, European PPA prices fell by 11%.

 

*The first line of the article was amended on September 2 to reflect that PPA prices did not fall in July but increased.

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