Pexapark reported that 12 power purchase agreements (PPAs) were signed across Europe in January, representing a combined contracted capacity of 724 MW. This marks a notable slowdown compared to December, when 24 deals were finalized, totalling 1.4 GW. Despite the decline in overall transaction volume and deal count, Spain distinguished itself through strong price performance, reinforcing its reputation as one of Europe’s most dynamic renewable energy markets.
Operational Assets Dominate New Agreements
Of the 12 PPAs executed during the month, seven were tied to already operational renewable energy assets. This trend highlights a growing market preference for existing projects rather than greenfield developments. Only one agreement involved a utility acting as the buyer, while the remaining contracts were signed by corporate offtakers.
The largest transaction recorded in January was a 300 MW solar PPA in Italy between Capital Dynamics and an undisclosed corporate buyer, making it the most significant deal by capacity during the month.
PPA Prices Rise, Spain Leads Gains
In terms of pricing, Pexapark’s PPA Index closed January at €45.60/MWh, reflecting a 2% month-on-month increase. Spain posted the strongest price growth in Europe, with a 12.3% rise, supported by a 4% increase in Iberian power futures.
Other markets also registered gains, including the Nordics (+10.5%), Portugal (+8%), Germany (+5.9%), and the Netherlands (+2.5%). In contrast, France recorded the sharpest decline, with prices falling by 7.3%.
Growing Momentum in Energy Storage Agreements
Alongside PPA activity, Pexapark identified 10 commercial agreements linked to battery energy storage systems (BESS) announced across Europe in January, representing a combined capacity of 934 MW one more than in December.
While Spain did not record any storage agreements during the month, other markets showed strong momentum. France, Germany, the United Kingdom, and Poland each announced two agreements. Among the most prominent transactions was a 250 MW/500 MWh physical tolling agreement in the United Kingdom between Drax and Fidra Energy, underscoring the increasing sophistication of storage contracting structures across Europe.
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