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.

Issue 04 – 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

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