As the energy transition progresses across Europe, developers continue to seek lucrative opportunities to develop wind and solar assets. This is becoming an increasingly difficult task, as falling capture rates in most markets, especially for solar assets, undermine long-term revenue expectations.

In response, two trends emerge: Power Purchase Agreements (PPAs) to diversify financial risk and Battery Energy Storage System (BESS) co-location to counteract cannibalisation. Valuing either strategy on its own is complex; combining both PPAs and BESS to balance risk and price adds yet another layer of complexity.

Combining PPAs and BESS co-location is still an emerging trend. Even without storage, PPA contracts are signed amid increasingly volatile power markets, where prices fluctuate in response to uncertain RES generation volumes, fuel prices, and demand dynamics, that must be forecasted over the contract’s tenure.

Adding BESS,  increases the number of variables that affect project valuations, such as whether the BESS operates under “Green BESS” restrictions vs “Gray BESS”, or to what extent the BESS’s dispatch contributes to the PPA’s delivery profile. The question is not only whether storage adds value, but where that value shows up in PPA pricing and revenues.

To shed light on this topic, this case study looks at:

• How a co-located, “Green BESS” can improve fair value PPA price under a “pay-as-produced” contract in an established market, Germany
• The impact of BESS on total revenue and generation throughout a PPA tenure
• Differences between onshore wind vs. solar revenue gains when BESS is added

This case study is based on the webinar “PPA Market Focus: Will 2026 be the year of BESS?” The webinar, presented on 3 February 2026, reviews power market developments, PPA trends, and the role of battery storage in shaping renewable revenues.

The full recording with visuals is available here: PPA market trends & BESS outlook 2026 | Webinar recording