Two multi-buyer deals signed in Denmark and the UK in April 2025 highlight an emerging trend of new players finding their way into the ever-evolving European Power Purchase Agreement (PPA) market.
Meanwhile, the Finnish market recorded the largest onshore wind PPA to date with 472 MW contracted.
European wholesale power prices maintained a steady downward trend month on month as milder temperatures kept demand in check, while solar production increased in key markets such as Germany.
A multi-national blackout across Spain, Portugal and parts of France on 28 April 2025 pointed to vulnerabilities in the interconnected European system, although the exact causes are yet to be determined.
As electricity supply was restored within 24 hours in most affected places, the event did not have a major impact on the spot market. However, Spanish production data for the first week of May points to a decreased solar and nuclear output, and a bigger share of gas-fired generation in the mix. This suggests that Spain and Portugal could see higher prices this month.
Compared to April 2024, spot prices remained elevated still as stronger carbon and gas continued to exert upward pressure in 2025, combined with lower onshore wind production. The Nordics remained the outlier where prices fell both month on month and year on year due to ample hydropower supply.
Strong volatility combined with negative and zero price hours persisted. In Germany, 11 % of all hours in April recorded a negative or zero price, almost doubling the rate compared to April 2024. In contrast, Spain and Portugal recorded less negative and zero price hours year on year, although month on month the number of such hours went up.
German solar production rose to 8.6 TWh last month, up 29 % compared to April 2024 and close to the record 9.3 TWh produced in July 2024. This comes as 3.7 GW of new solar capacity came online in the first quarter of 2025 (vs. 4.2 GW in Q1 2024) and total installed capacity reached just under 104 GW.
As a result, solar capture rates dropped to a record low 40 % in April 2025 (vs. 63 % in April 2024). To compare, last year’s lowest monthly solar capture rate in Germany was observed in August at 52 %.
Spain recorded a similar trend with solar capture rates plummeting to 30 % – the lowest rate observed so far.
In contrast, onshore wind generation in Germany stood at 5.9 TWh, down 39 % year on year and almost flat to March 2025. The limited output came despite accelerated capacity additions with 851 MW new capacity coming online in Q1 2025 (vs. 550 MW in Q1 2024). On the other hand, onshore wind capture rates rose to 99 %, up from 82 % in April last year.
For April 2025, Veyt recorded 19 PPA deals in Europe, down 10 deals compared to the same month last year and five deals fewer than in March 2025.
Contracted capacity rose month on month to 1.3 GW, while still trailing behind the 1.8 GW contracted in April 2024. The annual delivered volume reached 3 TWh – the highest annual volume registered in a single month so far this year, although still below last year’s April.
Onshore wind was the lead technology with nine recorded deals compared to eight solar PPAs. One multi-technology and one offshore wind deal were also recorded.
In terms of capacity, onshore wind stood out with 830 MW, while solar PV accounted for 450 MW. Most deals were signed in the UK and Spain with three deals each. Besides the established markets, we also see rising appetite for PPAs in Finland, Poland, Greece and Romania.
The first quarter of 2025 saw increased interest in hybrid and multi-technology PPAs. In April, only one multi-technology PPA was signed in Spain combining solar and onshore wind generation to supply electricity to a data centre.
However, two multi-buyer PPAs highlight the diversification of stakeholders and strategies in the market.
So far in 2025, Veyt recorded four multi-buyer deals compared to five such deals in total for the entire 2024.
Renewable electricity supplier Reel signed a PPA with 18 local companies in Denmark (DK1) for financing of a new solar project Villerup Sol. The project is expected to produce 12.4 GWh of electricity annually once operational in late 2025.
RWE signed a 10-year PPA for its London Array offshore wind farm with five co-operatives to deliver electricity across 400 locations. Earlier this year, RWE announced another PPA for the same project with Telehouse to supply its London Docklands data center.
Renewables developer OX2 secured an offtaker for two onshore wind farms in Finland totaling 472 MW – the largest reported deal in the country, according to Veyt’s PPA database. The two facilities are expected to have combined annual production of around 1.
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