June 2025 saw mixed price movements across the European markets with heatwaves towards the end of the month testing the interconnected electricity systems as thermal generation dropped, while solar production surged.
French and Spanish prices soared after heavy losses observed in May, while southeast European prices remained elevated. Most Nordic zones experienced price declines month on month with NO4’s average price hitting EUR 3.66/MWh. Germany saw a modest 5 % decline to EUR 64.05/MWh.
Year on year, most markets kept relatively steady prices (except for some Nordic zones), bucking the trend of the January-April 2025 period when prices consistently delivered above 2024 levels. Spain made an exception, experiencing 30 % higher prices compared to June 2024 as weather-driven demand surged.
Volatility – measured as percentage of hours with more than EUR 50/MWh hourly change – intensified compared to last year, especially in Germany, Netherlands and Poland. This was most likely linked to the heatwaves that hit the continent towards the end of the month.
The number of negative and zero price hours decreased month on month in most markets save for Germany. However, compared to June 2024, those instances continued to grow.
In fact, in H1 2025, NO4 saw five times more negative and zero price hours year on year, while these hours occurred two times more often in Germany, Austria and Sweden.
At 32 TWh, June 2025 hit the highest EU solar generation from utility-scale facilities, according to ENTSO-E data. Germany and Spain contributed with almost 17 TWh in total. However, while German solar capture rates continued to slide down to a new low of 31 %, capture rates in Spain rose to 52 %, after the record low 18 % rate observed in May 2025.
Onshore wind generation also grew in continental markets such as Germany but remained lower in Spain. This pushed German onshore wind capture rates down month on month to 89 %, after hovering closer to 100 % in the previous two months, while Spanish capture rates remained just above 100 %.
Activity on the European PPA market picked up in June 2025 with contracted capacity tripling month on month and almost doubling year on year to 1.7 GW, according to Veyt’s PPA database. The number of PPAs also rose to 22 deals recorded, five more compared to both May 2025 and June 2024.
The annual delivered volume soared to 2.74 TWh – the second highest annual volume registered in a single month so far in 2025 after April’s 3.85 TWh.
Solar remained the lead technology with 12 recorded deals, totaling 1.24 GW, followed by onshore wind with three reported deals and 251 MW contracted.
Two rare waste-to-power PPAs were also reported in France, although information on contracted capacity was missing. One each offshore wind, multi-technology and hybrid PPAs were also recorded. The average deal size increased month on month to 106 MW from 31.5 MW in May.
Interest in Europe’s largest PPA market – Spain – picked up again with seven reported deals, one of which was a virtual PPA with an offtaker based in Germany. France, Germany and the UK each recorded three PPAs with single deals also reported in Bulgaria and Sweden.
The IT and transport sectors led the buyer side accounting for 1.1 GW of the monthly contracted capacity.
U.S.-based renewable energy company Enfinity Global signed a 420 MW solar PPA in Italy with an unnamed US IT company. This is the largest deal in terms of capacity recorded in Italy to date, according to Veyt’s PPA database. The PPA placed Italy as the second largest market so far this year with just over 1 GW contracted. Spain remains the leader with 2.3 GW in total.
Water and waste management company SUEZ signed two 15-years waste-to-power PPAs in France with retail giant Carrefour and Bouygues Telecom, totaling almost 100 GWh annual production. Only one other waste-to-power PPA has been recorded prior to these latest announcements with utility AXPO offtaking 50 MW waste-to-power capacity from Slough Multifuel in the UK in 2021, according to Veyt data.
Utility Uniper signed a virtual PPA with the German state of Baden-Wuerttemberg to supply four German universities with electricity produced by 55 MW Spanish solar assets.
German utility EnBW signed a 20 MW offshore wind PPA in Germany with transport giant DHL linked to 960 MW He Dreiht offshore wind project. This is the ninth PPA related to this facility (due to come online in 2026) with over 500 MW already contracted.
Renewable developer Aukera signed a route-to-market hybrid PPA with utility EDF for an 84.5 MW solar farm and 31 MW co-located battery storage. The Benthead project located in Scotland was awarded a 15-year Contract for Difference (CfD) as part of the Allocation Round 6 in 2024. This is the fourth hybrid PPA reported so far this year – three more than in the same period last year.
Integrated energy producer OMV Petrom signed a 200 MW solar PPA with renewable energy provider Enery in Bulgaria as part of a larger deal to aquire 50 % share in the 400 MW Gabare project which in future could also include up to 600 MWh battery storage. This is the first PPA recorded in Bulgaria in 2025 so far and the largest in terms of contracted capacity to date.
Healthy liquidity in June 2025 melted some of the gap observed in previous months when comparing PPA activity to the same period last year.
Total contracted capacity for H1 2025 stood at 7.4 GW with 137 deals. To compare, H1 2024 recorded 8.7 GW under 151 deals. We could see the gap closing further as the year progresses.
Veyt expects a growing interest in onshore wind PPAs for assets located in England as new locations have become available with good wind conditions, attractive capture rates and thus high expected revenues from PPAs. An increase in PPAs both from post-subsidy assets and solar new-builds that seek rapid market access is also on the cards for Great Britain.
The German PPA market could see a boost as well if the new government takes on board recent recommendations put forward by the biggest local businesses seeking to decarbonise.
In Italy, market operator GME has opened a consultation on the functioning of the upcoming PPA negotiation platform aimed at improving liquidity and giving market access to smaller offtakers.
On June 20 2025, the Italian government officially adopted a long-anticipated ministerial decree to activate the platform, complemented by a state-backed guarantee scheme. Under the scheme, Italy’s GSE will act as a “guarantor of last resort” in case of counterparty default.
Activity in southeast Europe is also expected to pick up, including appetite for hybrid PPAs, as the regional battery storage market has been growing rapidly since the start of the year.
In Greece, the government recently approved almost 3 GW worth of renewable projects which will receive priority grid access if they sign a PPA with an industrial consumer and bring the facility online by the end of 2026.
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