Unpacking the 5 Key Trends That Paint the Full Picture of Europe’s PPA & BESS Offtake Markets

Welcome back to The Pexapark Podcast! In this episode, we look at what shaped offtake in H1 2025. Wind remains under pressure – Europe is busy renegotiating old projects rather than launching new ones. Romania’s CfD round saw solar overshoot targets at ~€41.7/MWh, while wind missed volumes and pushed prices higher. In northern Sweden, oversupply has driven prices into the teens and forced curtailments, while Spain is fast-tracking co-located batteries after April’s blackout, though spreads remain too tight to add much PPA value. Meanwhile, the EU has introduced a new industrial support scheme to cut heavy-industry power costs in exchange for reinvestment into decarbonisation. And with PPA indices now just under €50/MWh, mark-to-market practices are quickly becoming the norm.

In the second half, Dominique Hischier – VP - Analysis & Editorial at Pexapark joins us to break down the numbers:

• Volumes down 26% YoY, with the biggest hit in wind and multi-tech PPAs.
• Solar stays resilient, especially in Italy, while Germany slumps ~84% on cannibalisation and negative prices.
• Utilities return as pricing comes closer to fair value and appetite for risk grows.
• Corporates more cautious, less willing to pay “green at any cost” and wary of negative-price risk.
• BESS booming, with activity spreading across Europe, longer durations, and first hybrid deals shifting output into higher-value hours.

Analysis notes:

• Why PPA Buyers and Sellers Turn to Mark-to-Market Valuations for Their Deals
• Unpacking H1 Deal Flow: 5 Key Trends

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