Falling raw material costs, energy prices push down European PPAs in May

Swiss consultancy Pexapark's May report reveals significant drops in electricity, gas, and raw material prices. The carbon price fell below €80 ($87.62)/t0n – a more than four-month low.

Pexapark states that PPA prices in Europe have also fallen “significantly.” Most countries followed the downward trend, with the Netherlands experiencing a 15.7% decline and Great Britain a 15.5% drop. Prices only increased in Portugal and Spain. Pexapark does not provide specific country prices or additional economic details in the report.

In May, 23 new renewables-linked PPAs were announced, up 35% from the previous month. The total capacity of these announcements reached 982 MW, a 2% increase from April. Notably, small-volume PPAs dominated May, with only two deals surpassing 100 MW, compared to eight in February 2023, as reported by Pexapark.

Germany recorded the highest number of deals in May, with six announcements totaling over 245 MW. Spain ranked second with five announcements, totaling approximately 317 MW. Notably, Equinix made the largest agreement, acquiring 240 GWh of electricity per year from a 150 MW Sonnedix portfolio in Spain.