In Europe, the volume of solar and wind generation capacity signed under power purchase agreements (PPAs) fell in 2024. Energy price volatility receded as a key driver and a new risk emerged, in the form of solar and wind intermittency causing an increase in negative electricity price periods. Market intelligence provider Pexapark expects the European PPA market to return growth in 2025 as project developers and their customers adapt to the new market reality and energy storage plays a growing role in balancing electricity networks.
