A total of 12 power purchase agreements (PPAs) were signed in Europe in January, according to the latest analysis from Swiss renewables research firm Pexapark.
The agreements, which amount to 724 MW of contracted capacity, equate to roughly half the deal count and volume observed in December, which saw 1.4 GW signed off across 24 deals.
Pexapark noted that seven of the PPAs related to operational assets, adding that the finding reinforces a broader trend seen last year of higher activity in operational projects. Only one of the 12 agreements involved a utility offtaker, with the remaining signed by corporates.
The largest transaction of the month was a 300 MW solar PPA between Capital Dynamics and an undisclosed corporate buyer in Italy. The deal covers three projects that are expected to have a total annual electricity generation in excess of 0.5 TWh.
Pexapark also found tracked PPA prices closed at €45.60 ($53.88)/MWh in January for a 2% month-on-month increase. Spain saw the largest monthly increase, up 12.3%, attributed to a 4% rise in Iberian front-year power prices. The Nordic market recorded a 10.5% monthly increase, which Pexapark said primarily reflects upward adjustments in the forward power curve. PPA prices were also up in Portugal, Germany and the Netherlands, by 8%, 5.9% and 2.5% respectively.
France registered the largest drop in PPA prices, down 7.3% month on month, while the British, Polish and Italian markets recorded 3.8%, 2.2% and 0.7% declines.
Pexapark’s latest insight adds that there were ten announced commercial battery energy storage storage (BESS) deals in January, one more than in December. The deals totaled 934 MW and include two each in France, Germany, Great Britain and Poland.
Floors with revenue-share structures made up four of the commercial BESS deals, according to Pexapark’s analysis, while two long-term tolling agreements were announced in Germany and Great Britain. The largest transaction of the month was a 250 MW/500 MWh physical tolling agreement in Great Britain between Drax and Fidra Energy.
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