By the end of 2025, it became evident that traditional single-asset, pay-as-produced PPAs were no longer sufficient in many markets. The shift towards more complex structures is not a trend, but a response to structural change.

For developers, declining capture rates and rising imbalance costs challenged standalone asset economics. Battery energy storage systems emerged as a partial solution, offering the ability to shift generation, reduce exposure to negative prices, and stabilise revenues. However, integrating storage introduced additional valuation layers, operational assumptions, and contract negotiations.

Portfolio and multi-technology PPAs also gained traction. By combining assets with complementary profiles, developers could smooth output and improve capture performance. These structures, while attractive, reduced transparency and required more sophisticated modelling from all parties involved.

Looking into 2026, the trade-off is clear. Complexity can mitigate risk, but it increases transaction costs and demands stronger analytical capability. Developers with access to diversified portfolios, storage, or experienced counterparties are better positioned to navigate this environment.

The market is moving towards structures that reflect physical realities rather than financial simplifications.

A detailed assessment of portfolio PPAs, hybrid structures, and BESS-linked contracts is included in the PPA market review of 2025 and outlook.

For those evaluating portfolio PPAs, hybrid structures, or the role of storage, Veyt’s monthly cross-market update offers ongoing analysis beyond the annual review cycle.