Featured in Purchasing power – 04-2025

Who takes the risk?

Germany saw an unexpected level of negative price hours in 2024 and the market is still adjusting. The risk of low or negative electricity prices is increasingly shaping power purchase agreement (PPA) terms, even as it remains the key pricing factor. At present, long-term PPAs offer only slightly higher prices than those in the tender segment.

By

Sandra Enkhardt

01 Apr 2025

Plants up to 50 MW should soon be able to participate in tender auctions but PPAs will remain crucial for larger projects. | Photo: Goldbeck Solar

Germany’s electricity market changed fundamentally in 2024. Volatility following the outbreak of war in Ukraine has receded and prices have returned to a normal level. Though overall prices are still somewhat above the pre-crisis level, an increase in hours of negative pricing on Germany’s spot market was an unexpected development. In total, there were 457 …

This article is part of pv+

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