From an offtaker perspective, 2025 highlighted a growing disconnect between headline electricity prices and the effective value of PPAs.

Higher average prices did not equate to stronger hedging performance. Instead, increased volatility and declining capture rates introduced new layers of exposure. Solar-heavy PPAs, in particular, delivered energy during periods of structurally weaker pricing, while imbalance costs increased as generation profiles diverged from consumption.

For corporate buyers with limited trading capabilities, this complexity translated into higher residual risk. The cost of shaping, balancing, and managing excess generation eroded the apparent benefit of attractive contract prices. In several markets, PPAs priced well below forward curves still failed to deliver predictable budget outcomes.

These dynamics shifted procurement priorities. Buyers increasingly focused on profile alignment, flexibility options, and counterparty capability rather than price alone. Where such features were unavailable, some offtakers deferred decisions or reduced contracted volumes.

The implication is clear. PPAs remain a strategic tool, but their value now depends on a more nuanced assessment of risk allocation and operational exposure.

The PPA market review of 2025 and outlook provides a deeper examination of capture dynamics and their implications for corporate procurement strategies.

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