Pexapark says European developers signed 23 PPAs for 936 MW in December

Developers signed 23 new PPAs in December 2023, an increase of more than 50% from December 2022, when 14 deals were announced.

The deals reached a total capacity of 936 MW, nearly tripling the 342 MW recorded in December 2022. Pexapark said the results mark “a robust conclusion to an already strong year in PPA activity.”

All tracked PPA prices stood at €50.20 ($54.40)/MWh at the end of December. This is down 3.9% from November and 36% lower than at the start of 2023. Pexapark said PPA prices across Europe fell as power and commodity prices recovered from record highs last year, returning closer to levels last seen before the Russian invasion of Ukraine.

Great Britain saw the largest month-on-month decrease in PPA price in December. Portugal and Spain experienced the smallest annual change in PPA prices throughout 2023, said Pexapark.

Spain stood out as the most active country in December, with a total of eight new PPAs. Four were underpinned by off-takers from the health care sector and three were classified as cross-border PPAs. They included a 15-year cross-border PPA tied to a 124 MW solar project near Seville, signed by Pfizer and Bruc Energy.

Sweden recorded two PPAs in December, including a deal between Axpo, Egmont, and Soltech Energy Solutions, who joined forces for an 11 MW solar plant near Falkenberg, Sweden. Meanwhile, four new PPAs were announced in Germany, bringing the country’s total in 2023 to 41 deals for 3.7 GW, up from 23 in 2022.

The five largest PPA deals in 2023 were split between Spain and Germany, marking the first time Germany has appeared in the list of top five deals. Pexapark said PV assets accounted for the lion’s share of the largest deals for the first time, with the technology making up more than 80% of an aggregated 3 GW in the five largest deals.