In a significant surge, European developers secured 1.6 GW in solar Power Purchase Agreements (PPAs) in October, as reported by Swiss consulting firm Pexapark. The firm noted a noteworthy increase from 17 closed deals in September and nine announced in August, bringing the year’s total PPA count to 218.
Increasing Deal Volume and Capacity
Developers closed 36 long-term PPAs in Europe during October, showcasing a robust expansion compared to the preceding months. The cumulative capacity of these deals reached an impressive 1.6 GW.
Average PPA Prices Decrease
Pexapark’s analysis revealed an average decrease of 1.9% in PPA prices across various technologies and geographies in Europe, concluding the month at €54.0 ($59.10)/MWh.
Regional Price Variations
France experienced the most significant monthly decline at 6.8%, attributed to greater nuclear availability forecasts coinciding with lower electricity demand. Following closely was the Netherlands, with a 5.2% decrease due to falling food prices. On the contrary, both Portugal and Spain observed slight increases in PPA prices, registering 2.3% and 2.4%, respectively.
Major Deals and Industry Trends
Ireland witnessed the most substantial deal of the month, as Highfield Solar signed a 276 MW solar PPA with Meta, Facebook’s parent company. Additionally, Germany showcased a strategic shift in its wind resources towards green hydrogen production, with two out of four announced PPAs dedicated to this purpose.
Lyhfe, a key player in the industry, signed its third PPA to fuel its green hydrogen and ammonia plants in France. The Renewable Electricity Guarantee Fund financed one of the first PPAs announced in the country.
Italy’s PPA Landscape
Pexapark reported a notable activity in Italy, with 2.08 GW of PPAs closed across 43 deals, indicating a robust engagement in the renewable energy sector.
This surge in PPA activity reflects the continued commitment of European developers towards expanding renewable energy capacity, while the evolving market dynamics, including shifting regional prices and strategic shifts towards green hydrogen, underscore the dynamism of the industry.
Source: pv-magazine.com
